Requirement 1 (15 points)

Tesla Inc. just paid an annual dividend of $5.50 per share. The company will increase its dividend by 30% percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 15 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 20 percent?

1. What is the terminal value? (5 points)

2. What is the value of the stock? (10 points)

please answer using the excel format in the second photo thank you!

Tesla Inc. just paid an annual dividend of $5.50 per share. The company will increase its dividend by 30% percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 15 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 20 percent? 1. What is the terminal value? (5 points) 2. What is the value of the stock? (10 points)