What is the willing to pay for tsla stock

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You are considering investing in a new stock, Tesla (TSLA), and have decided to do some analysis before pulling the trigger. The beta of TSLA is 1.2, the market risk premium is 5%, and the risk free rate is 1%. Assume TSLA stock will pay a dividend of $2 per share next year and will trade at a price of $99 per share.

Problem 1: What is the most you are willing to pay for TSLA Stock given these assumptions?

Reference no: EM132910513

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