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Tesla Inc (TSLA) has been growing at a rate of 30% per year in recent years. This same supernormal growth rate is expected to last
Tesla Inc (TSLA) has been growing at a rate of 30% per year in recent years. This same supernormal growth rate is expected to last for another 4 years, during which it will not pay dividend. It will start paying a dividend of $5 a share in 5 th year. After this, earnings and dividends are expected to grow at a 4 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
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