What is the actual value of the stock today

Assignment Help Accounting Basics
Reference no: EM133016263

Question - You see the price of TSLA stock is $687 a share. You aren't sure if you should give your money to the "Technoking of Tesla" and the "Master of Coin" so you try to figure out Tesla stock price. You see that tesla has a $4 dividend today. You think Tesla will grow by 50% this year, 30% next year, 20% the following year and then grow by 8% per year forever. If Tesla's discount rate is 12%, What is the actual value of the stock today?

Reference no: EM133016263

Questions Cloud

Compare the overall presentation of the financial statements : Compare the overall presentation of the financial statements and notes to the financial statements between the two companies
How realistic is the model : How realistic is the model? Is there any other aspect that should be taken into account when developing the model (e.g., uncertainty in the demand
Important aspect of production operation : Process improvement is an important aspect of production operation within an organization. Identify a technique that can be used to eliminate process variabilit
What is the present value : What is the present value of $20,000 per year in perpetuity at an annual interest rate of 10 percent? Assume the perpetuity starts in one year
What is the actual value of the stock today : You think Tesla will grow by 50% this year, 30% next year, 20% the following year and then grow by 8% per year forever. What is the actual value of the stock
What phase the smartphone industry is in days : What phase the smartphone industry is in these days? Explain your answer.
Companies often compete through innovation : Companies often compete through innovation, quality, service, and cost. Based on the case, discuss how technologies have been used by Coupang in the e-commerce
Develop a game-winning move : This course provided you with the ability to assess the playing field, the competition, and your organization in order to develop a game-winning move. Discuss h
What is gopro unlevered free cash flow : In 2014, GoPro spent $27.5 million on capital expenditures, experienced an increase in net working capital. What is GoPro unlevered free cash flow

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd