The Price to Earnings ratio for TESLA is $7.50 per share. If the P/E ratio for comprable comapanies is 100, the stock price for TESLA should be $ (2 decimal places). QUESTION 2 To compute the fundamental value of the entire company (e.g., TESLA) would require us to forecast future "free cash flows" and take their present value. Yes No QUESTION 3 I read in the Wall Street Journal delivered today morning that Merck has a new product that will allow everyone to live until 125 years old. Sales for Merck are expected to increase. Then, Buying MRK stock is of no use- its price must have already appreciated. MRK stock price is likely to appreciate gradually in the future. This information is not relevant for the stock price but only for debt prices