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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)

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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%?
28 29 Question 3 Expedia The Kraft Trip.com DocuSign Dollar Electronic Exelon Group, Texas Heinz Group Limited Inc. Tree Inc. eBay Inc. Arts Inc. Corporation Inc. Tesla, Inc. Instruments Company American Common Common Common Common Common Common Common Incorporated Common Depositary Stock Stock Stock Stock Stock Stock Stock Common Stock Stock Shares $185.50 $ 90.50 $ 57.72 $ 140.45$ 37.34 $ 87.60 $ 1,428.36 $ 138.28 $ 36.02 $ 28.29 2.8% 4.1% 1.1% 2.3% 2.5% 0.8% 1.0% 0.9% 1.0% 1.4% 30 31 Stock price 32 Growth rate DPS Dividend per share (just paid 33 annual dividend) EPS Earnings per 34 share 35 $ 9.18 $ 8.12 $ 4.57 $ 12.80 $ 5.58 $ 7.16 $ 151.25$ 12.07 $ 3.58$ 2.34 $ 15.61 $ 13.80 $ 7.58 $ 21.76 $ 9.49 $12.17 $ 257.13 $ 20.52 $ 6.09 $ 3.98 Ke Do(1+) Po +9

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