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(1) You are evaluating shares in General Electric (GE). They just paid an annual dividend of $15.00 per share last year but have cut future

(1) You are evaluating shares in General Electric (GE). They just paid an annual dividend of $15.00 per share last year but have cut future dividends to $12.50 per share and do not expect those to grow in the future. If you use a discount rate of 12%, what is the value of the shares?

(2) You are evaluating shares in Telsa (TSLA) and comparing it to General Motors (GM). TSLA is trading at $250.00 per share, had EPS last year of $12.50 per share and is expected to have EPS which is 5% higher this year. GM is trading at $25.00 per share, had EPS last year of $1.50 per share and is expected to have EPS which is 2% higher this year. You believe that TSLA mature and should trade at the same forward P/E as GM. Assuming you are right, compute TSLAs expected stock price.

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