Goodwin technologies is a relatively young company goodwin


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 $2.50 dividend at that time (D3 - $2.50), and believes the dividend will grow by 30% for the following two years (D4 and D5). However, after five years, she expects Goodwin's dividend to grow at a constant rate of 7% per year. 1) If Goodwin's required return is 11.9%, what is Goodwin's current intrinsic value?

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Financial Management: Goodwin technologies is a relatively young company goodwin
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