Tesla is expected to pay no dividends over the next 4 years, pay a dividend of $5
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Question:
Tesla is expected to pay no dividends over the next 4 years, pay a dividend of $5 at the end of year 5, and then grow the dividends by 6% each year afterwards. The required rate of return (r) is 8%. What should be the stock price today according to the two-stage growth model?
$183.76
$272.83
$121.82
$455.75
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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