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You are trying to calculate implied value of market capitalization rate of TSLA, using the constant growth DDM. TSLA has just paid dividends of $5
You are trying to calculate implied value of market capitalization rate of TSLA, using the constant growth DDM. TSLA has just paid dividends of $5 per share, and its dividends is expected to grow by 8% per year. If TSLA is trading at $40 per share in the stock market, what is the implied value of TSLA's market capitalization rate? a) 21.5% b) 23.0% c) 20.0% d) 18.5%
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