Task 1: Stock Valuation Tesla, Inc.,is growing rapidly and now you need to estimate the value of
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Question:
Task 1: Stock Valuation
Tesla, Inc.,is growing rapidly and now you need to estimate the value of its common stock. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. Required return is 10 percent, and the company just paid a dividend of $6.20.
Questions:
1.What is the estimated terminal value?What is the estimated current share price of Tesla?
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