Business, 21.04.2020 19:30 ns047637pea80j

Goodwin Technologies, a relatively young comply, 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 $1.5000 dividend at that time (D3 = i 1.5000) and believes that the dividend will grow by 7.80% 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 3.42% per year. Goodwin's required return is 11.40%. Fill in the following chart to determine Goodwin's horizon value at the horizon date-when constant growth begins-and the current intrinsic value.

Horizon Value

Current Intrinsic Value

To increase the accuracy of your calculations, carry the dividend values to four decimal places.

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