Question
You own 1,000 shares of Tesla stock 3 years ago at Tk.42 per share. Currently, the stock price is Tk.72 per share. The Tesla stock
You own 1,000 shares of Tesla stock 3 years ago at Tk.42 per share. Currently, the stock price is Tk.72 per share. The Tesla stock paid a relatively high rate of dividends from years 2001 through 2014 growing at about 12 percent per year. However, the dividend growth rate appeared to decline.
The company paid the following dividends per share from 2015 through 2020.
Year Dividend per share (Tk.) 2015 5.60 2016 5.95 2017 6.10 2018 6.45 2019 6.85 2020 7.20
The required rate of return is= 9.4% and You believe that the growth rate of dividends from 2015 through 2020 will continue into in definite future.
Would you purchase 1000 Shares or sell your own share?
Don't copy from Chegg that's wrong and use the dividend valuation model
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