Goodwin Technologies is a relatively young company. Goodwin has been widly successful, but it has yet to pay a dividend. An analyst has forecasted that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $5 dividend at that time (D3 - $5), and believes the dividend will grow by 26% for the following two years (D4 and D5). However, after five years, she expects Goodwin's dividend to grow at a constant rate of 4.26% per year. If Goodwin's required return is 14.2%, Fill in the following chart to determine goodwins 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.

Horizon value____________

Current Intrinsic value__________________

IF investors expect a total return of 15.2%, what will be goodwins 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.

Expected dividend yield (DY3)____________ Expected capital gains yield (CGY3)____________

Goodwin has been vary successful, but it hasnt paid a dividend yet. It circulates a report to its key investors containing the following statement: Goodwin has yet to record a profit. Is this statement a possible explanation for why the firm hasnt paid a dividend yet?