(a) (b) (c) (d) You decide to buy a single share of Tesla stock (TSLA). It...
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(a) (b) (c) (d) You decide to buy a single share of Tesla stock (TSLA). It is currently valued at $891.29 per share. In 4 months, TSLA will have their next earnings announcement, and you are hoping they will exceed analysts' expectations. Assume you have an interest rate of r = 0.02 (2%) per annum, and that all interest is compounded continuously. (2.00 Points) At the 4-month earnings call, what price does TSLA need to reach for you to break even? Create a payoff and profit diagram for this transaction. Be sure to label all axis, and to indicate the breakeven point. TSLA has an unexpectedly low earnings report, and their stock drops to $869.42. What is your total payoff and what is your total profit if you sell? Ellon Musk tweets that Tesla will now accept Dogecoin as payment and the internet goes wild. TSLA price jumps to 964.20 per share. What is your total payoff and total profit if you sell? (a) (b) (c) (d) You decide to buy a single share of Tesla stock (TSLA). It is currently valued at $891.29 per share. In 4 months, TSLA will have their next earnings announcement, and you are hoping they will exceed analysts' expectations. Assume you have an interest rate of r = 0.02 (2%) per annum, and that all interest is compounded continuously. (2.00 Points) At the 4-month earnings call, what price does TSLA need to reach for you to break even? Create a payoff and profit diagram for this transaction. Be sure to label all axis, and to indicate the breakeven point. TSLA has an unexpectedly low earnings report, and their stock drops to $869.42. What is your total payoff and what is your total profit if you sell? Ellon Musk tweets that Tesla will now accept Dogecoin as payment and the internet goes wild. TSLA price jumps to 964.20 per share. What is your total payoff and total profit if you sell?
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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