9. Stocks that don't pay dividends yet 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 $4.00 dividend at that time (D3=$4.00) and believes that the dividend will grow by 20.80% for the following two years ( D4 and D5). However, after the fifth year, she expects Goodwin's dividend to grow at a constant rate of 4.02% per year. Goodwin's required return is 13.40%. Fill in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value. Assuming that the markets are in equilibrium, Goodwin's current expected dividend yield is , and Goodwin's capital gains yield is