How much will i pay for a share of tesla today required


TESLA is a relatively young tech company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year six it will pay a dividend of $two. This dividend will grow at a rate of 25% for the next 4 years. After that TESLA pledges to maintain a constant 5% growth rate in dividends for forever. How much will I pay for a share of TESLA today? Required rate of return is 18%.

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