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DocuSign, Inc. Common Stock Dollar Tree Inc. Common Stock eBay Inc. Common Stock Electronic Arts Inc. Common Stock Exelon Corporation Common Stock Expedia Group, Inc.

DocuSign, Inc. Common Stock Dollar Tree Inc. Common Stock eBay Inc. Common Stock Electronic Arts Inc. Common Stock Exelon Corporation Common Stock Expedia Group, Inc. Common Stock Tesla, Inc. Common Stock Texas Instruments Incorporated Common Stock The Kraft Heinz Company Common Stock Trip.com Group Limited American Depositary Shares
Stock price $ 185.50 $ 90.50 $ 57.72 $ 140.45 $ 37.34 $ 87.60 $ 1,428.36 $ 138.28 $ 36.02 $ 28.29
Growth rate 2.8% 4.1% 1.1% 2.3% 2.5% 0.8% 1.0% 0.9% 1.0% 1.4%
DPS Dividend per share (just paid annual dividend) $ 9.18 $ 8.12 $ 4.57 $ 12.80 $ 5.58 $ 7.16 $ 151.25 $ 12.07 $ 3.58 $ 2.34
EPS Earnings per share $ 15.61 $ 13.80 $ 7.58 $ 21.76 $ 9.49 $ 12.17 $ 257.13 $ 20.52 $ 6.09

$ 3.98

Name of Company

Dividend Yield

Dividend per share/Current Stock price*100

Capital Gain yield

I.e Growth rate

Required return on stock (based on Dividend growth model)

image text in transcribed

Docusign inc. $9.18/$185.50*100=4.95% 2.8% ={[9.18(1+2.8%)]/185.50}+2.8%=7.89%
Dollar tree inc. $8.12/$90.50*100=8.97% 4.1% ={[8.12(1+4.1%)]/90.50}+4.1%=13.44%
eBay inc. $4.57/$57.72*100=7.92% 1.1%

={[4.57(1+1.1%)]}/57.72}+1.1%=9.10%

Electronic Arts inc. $12.80/$140.45*100=9.11% 2.3% ={[12.80(1+2.3%)]/140.45}+2.3%=9.54%
Exelon corporation $5.58/$37.34*100=14.94% 2.5% ={[5.58(1+2.5%)]/37.34}+2.5%=17.82%
Expedia Group,inc. $7.16/$87.60*100=8.17% 0.8% ={[7.16(1+0.8%)]/87.60}+0.8%=9.04%
Tesla, inc.

$151.25/$1428.36*100=10.59%

1.0% ={[151.25(1+1%)]/1428.36}+1%=11.69%
Texas instruments incorporated $12.07/$138.28*100=8.73%

0.9%

={[12.07(1+0.9%)]/138.28}+0.9%=9.71%
The Kfraft Heinz company $3.58/$36.02*100=9.94% 1.0% ={[3.58(1+1%)]/36.02}+1%=11.04%
Trip.com group limited $2.34/$28.29*100=8.27% 1.4% ={[2.34(1+1.4%)]/28.29}+1.4%=9.79%
Best Company Exelon corporation Dollar Tree Inc. Exelon corporation
  1. What will be the share prices of the selected company in 4 years, considering the dividend growth model, if the required rate of return is 10%?
Ke Do(1+) Po +9 Ke Do(1+) Po +9

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