Find goodwin horizon value at the horizon date

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Goodwin Technologies, a relatively new 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 $1.75 dividend at that time (D3= $1.75) and believes that the dividend will grow by 9.10% 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 $3.48 per year.

Goodwin's required rate of return is 11.60%. Find Goodwin's horizon value at the horizon date-when constant growth begins- and the current intrinsic value.

4) Expected Capital Gains Yield (CGY3) - A) 25.55% B) 11.60% C) 15.34% D) 19.03%

PLEASE ANSWER FOR CAPITAL GAINS YEILD -THANK YOU

Reference no: EM131598056

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