QUESTION 4 [12 marks] Use the EV EBITDA multiple of General Motors to value the Tesla share. Use information in the table below to complete this question Company (period ending date) General Motors (GM (30 Dec, 2019 $22.38 1,430 million $19,069 million Closing share price (209 April, 2020) Number of shares outstanding Cash and Cash Equivalents (as of period ending date) Short Term Investments (as of period ending date) Current Debt (as of period ending date) Long Term Debt (as of period ending date) Revenue (12 months to period ending date) EBITDA (12 months to period ending date) | CAPEX (12 months to period ending date) $4,174 million $37,400 million $65.924 million $137,237 million $12,771 million $23,996 million $4.62 1.51 7% 8.5% Tesla (TSLA) (30 Dec, 2019) $746.36/ 184.39 million $6,268 million NA $1,785 million $11,634 million $24,578 million $2.174 million $1,432 million - 54.87 0.73 7.5% | EPS (12 months to period ending date) Beta (5 year monthly) WACC Growth Estimates (per annum, for next 5 years) 389% a) What is the per share value of Tesla based on the EV EBITDA multiple of General Motors? (8 marks) QUESTION 4 continued: b) Would you consider Tesla to be over-valued relative to General Motors and recommend that investors sell shares of Tesla based on your answers to part a) of this question? Briefly explain. (4 marks) 2 II 1 l I al 2 2 2 2 2 2 2 2 | 1 al I al 2 1 1 2 2