The price of Tesla Inc is approximately $776 billion as of 10/04/21. [The price Tesla = the number of Tesla shares outstanding (1 billion shares) * the share price of $776 = Tesla’s market capitalization.] What is your estimate of the value of Tesla Inc.? Please explain how you would estimate it and show your calculation.
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What is your estimate of the value of Tesla Inc.? Please explain how you would estimate it and show your calculation.
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- Consider that you were given a US savings bond that will pay $100 when it matures in ten years. What happens if the interest rate rises to the present value of this bond payment?Why happens if the interest rate rises to the present value of this bond payment? A. Increases in present value B. The current value is unaffected. C. A decrease in present valueA firm that owns and manages rental properties is considering buying a building that would cost $800,000 this year, but would yield an annual revenue stream of $50,000 per year for the foreseeable future. For what range of interest rates would this purchase increase the present value of the firm?Suppose you are considering whether to purchase a house off of Lake Erie for $400,000. You expect the total costs of maintaining the property (utilities, repairs, etc.) to equal $15,000/year, and that you would be able to generate $35,000/year in revenue if you were to put the house on the short term rental market. Suppose you are deciding between purchasing the home or whether to invest $400,000 in an interest-bearing account. If your objective is to maximize your own net income, what would the interest rate have to equal for you to invest in the interest-bearing account? Can you help me just figure out how to set this up? I get that we need the investment to equal 20k but not sure on how to figure out interest rates.
