Question
Your task is to value Tesla, Inc. (TSLA) stock. You predict that it will begin paying dividends in the fairly near future. More specifically, you
Your task is to value Tesla, Inc. (TSLA) stock. You predict that it will begin paying dividends in the fairly near future. More specifically, you predict that Tesla will pay its first dividend nine years from today and that Div9 will be $40.00 per share. You next forecast that dividends would grow by 10.00% per year over the following four years, Financial Management MidTerm Exam, p.3 (8, continued) after which the dividends will grow by a constant, perpetual rate of 5.50%/year. If the appropriate required return for TSLA's stock is 9.12%, calculate a fair current price for TSLAs stock
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