Question
Suppose the current price of TSLA is $50. You estimate that TSLA's expected dividends per share will be 0 for 4 years, $2 in
Suppose the current price of TSLA is $50. You estimate that TSLA's expected dividends per share will be 0 for 4 years, $2 in year 5, and then grow at some rate g. TSLA's required return is 8%. Using the two-stage DDM, what is the expected growth rate g?
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