TSLA is expected to generate free cash flows of $70 billion starting one year from now, and these free cash flows will g

[answerhappygod]

TSLA is expected to generate free cash flows of $70 billionstarting one year from now, and these free cash flows will grow at5% per year forever. The weighted average cost of capital of TSLAis 15%. Companies similar to TSLA have a P/E ratio of 70 and TSLAposted earnings per share of $8 recently. TSLA has $10 billion ofoutstanding debt, 1 billion shares, and $10 billion of cash on itsbalance sheet. Compute the enterprise value of TSLA. Compute theprice per share of TSLA using the enterprise value answer in part(a) Using the P/E ratio for similar companies, estimate the currentprice of TSLA.