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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to

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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $4.7500 dividend at that time (D_3 = $4.7500) and believes that the dividend will grow by 24.70% for the following two years (D_4 and D_5). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.20% per year. Goodwin's required return is 14.00%. FIB in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value. To increase the accuracy of your calculations, carry the dividend values to four decimal places. If investors expect a total return of 15.00%, what win be Goodwin's expected dividend and capital gains yield In two years-that is, the year before the firm begins paying dividends? Again, remember to carry out the dividend values to four decimal places

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