Answer:
$85
Step-by-step explanation:
The Current stock price of Tesla will be determined by the formula given below;
Po = [Do (1 + g) ] / (r - g)
Po = Current price
Do = Current dividend
r = Rate of return
g = growth of dividend
Do = $3 * 1.12 = $3.36
D1 = $3.36 * 1.12 = $3.76
Po = ($3.76 * 1.13 ) / (0.18 - 0.13)
Po = $ 4.25 / 0.05
Po = $85