Question
1. Use the values below answer the following question. Tesla- Stock Price: $843.03, Dividend per Share: N/A, P/E ratio: 444.40, Earning per share: 1.90 -----------------------------------------------------------------------------------------------------------------------
1. Use the values below answer the following question.
Tesla- Stock Price: $843.03, Dividend per Share: N/A, P/E ratio: 444.40, Earning per share: 1.90
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Apple- Stock Price: $144.84, Dividend per Share:$0.88, P/E ratio: 28.37, Earning per share: 5.11
Using the formula Grodan Growth model calculates both companies' returns and dividend growth rates (make the required assumption if needed).
Suppose we realized that Tesla's earnings were overvalued. To correct that, we need to decrease it by 80% (Tesla couldn't sell as many as promised). What is the new share price, rate of return, and P/E ratio?
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College Accounting, Chapters 1- 15
Authors: James A. Heintz, Robert W. Parry
23rd Edition
0357391942, 9780357391945
