Question
Tesla Inc (TSLA) has been growing at a rate of 36% per year in recent years. This same supernormal growth rate is expected to last
Tesla Inc (TSLA) has been growing at a rate of 36% per year in recent years. This same supernormal growth rate is expected to last for another 3 years, during which it will not pay dividend. It will start paying a dividend of $5 a share in 4th year. After this, earnings and dividends are expected to grow at a 5 percent annual rate indefinitely. Investors currently require a rate of return of 10 percent. What should be the current market price per share of its stock?
Group of answer choices
63.86
67.61
82.64
75.13
71.37
Please Use Excel and 5 Keys to Solve please.
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