Question: NOTE: I have to do the expected dividend yield and expected capital gains yield, I am not sure how to do this. Please help and

 NOTE: I have to do the expected dividend yield and expected

NOTE: I have to do the expected dividend yield and expected capital gains yield, I am not sure how to do this. Please help and explain !

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 $2.25 dividend at that time (D3 = $2.25) and believes that the dividend will grow by 11.70% 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 3.60% per year. Goodwin's required return is 12.00%. Fill in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value. Term Value $34.62 Horizon value Current intrinsic value $24.43 If investors expect a total return of 13.00%, what will be Goodwin's expected dividend yield and capital gains yield in two yearsthat is, the year before the firm begins paying dividends? (Hint: You are at Year 2, and the first dividend is expected to be paid at the end of the year. Find DY3 and CGY3.) 10.29% Expected dividend yield (DY3) Expected capital gains yield (CGY3) [ 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 $2.25 dividend at that time (D3 = $2.25) and believes that the dividend will grow by 11.70% 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 3.60% per year. Goodwin's required return is 12.00%. Fill in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value. Term Value $34.62 Horizon value Current intrinsic value $24.43 If investors expect a total return of 13.00%, what will be Goodwin's expected dividend yield and capital gains yield in two yearsthat is, the year before the firm begins paying dividends? (Hint: You are at Year 2, and the first dividend is expected to be paid at the end of the year. Find DY3 and CGY3.) 10.29% Expected dividend yield (DY3) Expected capital gains yield (CGY3) [

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