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) B F G 6 E Present value F Price D Dividend amount Terminal value 7.15 8.9375 10.725 12.33375 283.67625 Annual dividend 2 Growth rate at 1 year 3 Growth rate at 2 year 4 Growth rate at 3 year 5 Growth rate at 4 year 6 Growth rate at 5 year 7 8 9 10 Dividend amount 11 Rquired return 12 13