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

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

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