Question: Please help me solve this question and explain Tesla sells at a PE of 54 while General Motors sells at a PE of 5. The

Please help me solve this question and explain
Please help me solve this question and explain Tesla sells at

Tesla sells at a PE of 54 while General Motors sells at a PE of 5. The difference in PEs can be attributed to: Tesla has a higher discount rate. General Motors has a lower ROE. General Motors has a higher plowback ratio Tesla stock is under-valued Question 15 (3 points) We looked up the betas for Microsoft and Wal Mart in class. We needed this information to: Estimate the growth rates in dividends for these two stocks. Estimate the yield to maturity on the bonds issued by the two companies. Calculate the risk free rate of interest. Estimate the expected rate of return for the two stocks

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