For two companies, perform the following valuation model calculations:

Using previous $5$ years of dividend growth, use Gordon Growth Discount Model to predict the present values at:

a$.12\%$ required rate of return

b$.10\%$ required rate of return

c$.8\%$ required rate of return.

Using $3$ to $5$ years of expected results, use the Discounted Cash Flow Model to predict the present values at:

a$.10\%$ required rate of return

b$.8\%$ required rate of return

Notes: Use the current and prior years' dividends per share to calculate the dividend growth rate for the Gordon Growth

Dividend Discount Model. The dividend growth rate for each year is computed by the following formula:

$($Next Year's Dividends $-$ Last Year's Dividends$)/($Last Year's Dividends$)$

You then compute the average of the growth rates that you calculated by summing all the growth rates together

and dividing by the number of years. Go back at least five years. $($Of course, you could simply use The Value Line's

projected annual dividend growth rate$)$

Remember that sometimes this model will produce aberrant results $($such as division by zero or negative values$)$

depending upon the required rate of return. If this happens, you can adjust the required rate of return up or down

until you get reasonable values. Or you could simply display $"$N$/$A$"$ as the result.

For the Discounted Cash Flow Model, use The Value Line estimated or actual dividends and extrapolate the

estimated dividends from $2024$ to $2026,2027,$ or $2028.$ Or use the dividend growth rate you calculated for the

Gordon Growth Dividend Discount Model to calculate estimates of the $2025$ through $2028$ dividends. Use an

appropriate value for the target price of early $2026,$ or anytime in $2026,2027,$ or $2028.$

Dow Jones Stocks: The models work best with large$-$cap stocks with long histories of paying dividends. $($aka blue$-$chip stocks$)$

American Express, Amgen, Apple, Boeing, Caterpillar, Chevron, Cisco Systems, Coca Cola, Disney, Dow Chemical,

Goldman Sachs, Home Depot, Honeywell, IBM, Intel, Johnson & Johnson, J$.$ P$.$ Morgan, McDonald's, Merck, Microsoft,

Nike, Procter & Gamble, salesforce, $3$M$,$ Travelers, United Healthcare, Verizon, Visa, Walgreens Boots, Walmart.