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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 $3.2500 dividend at that time (D $3.2500) and believes that the dividend will grow by 16.90% for the following two years (D4 and D5). However, after the fifth year, she expects Goodwins dividend to grow at a constant rate of 3.84% per year. Goodwins required return is 12.80%. 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. Value Term Horizon value Current Intrinsic value Assuming that the markets are in equilibrium, Goodwins current expected dividend yield is and Goodwins capital gains yield is Goodwin has been very successful, but it hasnt paid a dividend yet. It circulates a report to its key investors containing the following statement: Goodwins investment opportunities are poor. Is this statement a possible explanation for why the firm hasnt paid a dividend yet? O Yes O No

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