Tesla Inc. (TSLA) has a market capitalization of $608 billion. TSLA is not expected to pay any dividends over the next four years. TSLA is expected to pay its first dividend exactly five years from now in December 2025. At that time, its earnings are expected to be $25 billion and its plow-back ratio is expected to be 80%. TSLA's beta is 1.2, the risk-free rate is 1%, and the expected market return is 7%. a. What growth rate is the market pricing in for TSLA from December 2025 onward? (Hint: use the two-stage dividend discount model.) b. You forecast that TSLA's growth rate from December 2025 onward will be 7.4%. Under this forecast, what will be TSLA's market capitalization in December 2025, right after it pays its first dividend? Under the forecast in (b), is TSLA currently undervalued or overvalued? C