Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tesla Inc. has been making significant strides in the electric vehicle market, and this projected growth reflects its continued momentum. Because of this, the company

Tesla Inc. has been making significant strides in the electric vehicle market, and this projected growth reflects its continued momentum. Because of this, the company has never declared dividends on its common stock. Management also intends on retaining all future earnings to finance current and future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future. The company's shares are currently, as of March 8, 2024, valued at $178.65 each and the current quarter earnings per share is $2.26. The number of common shares issued and outstanding is 3.485 billion. The estimated sales total for the current quarter is $2.8 billion. The company's earnings forecast for the next 12 months are as follows: - A median estimate of an increase of 39.45% - A high estimate of a 90.3% increase - A low estimate of a 17.5% decrease Based on the earnings forecast, calculate the median, high and low values of Tesla's shares 12 months from now.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Management

Authors: James Van Horne, John Wachowicz

13th Revised Edition

978-0273713630, 273713639

More Books

Students also viewed these Finance questions