You are an investor looking to purchase the stock of Goodwin company which has sales of $220 million, and is expected to increase by 15 percent next year and 12 percent the year after. The company expects to have a net profit margin of 8 percent each year, and a dividend payout ratio of 60 percent. Goodwin expects a constant 3 million shares outstanding. After the year 2 growth rate of 12% you expect the company to settle into a long-term growth rate of 5%. 1. Using CAPM what would be the required return of Goodwin if the current 10-year Treasury Bond is 4%, the expected return on market is 10% and the beta of Goodwin company is 1.67. 1. Using the dividend growth model calculate, using the required rate of return you just calculated, what is the intrinsic stock price of Goodwin Company