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same as a order no 145112 answering below questions for Tesla company as a case study please draw graph if needed for one of the below questions.
< [5] Volatility in the equities market reflects a wide range of sentiments regarding individual companies and entire economic sectors? < (a) What is the importance of market volatility in assessing equity valuations? < (b) What is the significance of the “beta” value of a stock? How does it measure the volatility of the stock? Explain. < (c) What is the beta value of your stock? How do you interpret the significance of this statistic as it relates to the risk of investing in this stock? < [6] Assess the profitability of the company over the last FIVE years. < (a) What is the share price per earnings ratio (P/E) last year? Three years ago? Five years ago? < (b) What is the earnings per share ratio last year? Three years ago? Five years ago? < (c) How has the profitability of the company affected the Capital Structure of the Company (Debt to Income ratio) last year? Three years ago? Five years ago? < (d) Do you think the company values reinvestment or distribution of profits over reducing its debt obligations? What does this indicate about senior manager’s view toward its corporate leverage? < [[7] Based on the “One-Period Valuation Model” as per the equation below, estimate the < price that you are willing to pay for the stock based on the ‘Present (discounted) Value’ (PV) model of expected cash flows (future payments). < Assume a 12% return on your investments in equity. Use the percent of the company’s last year’s (total) dividend (D1 in equation) and your estimated price of the stock in one year (12 months). < (a) What is the current stock price of the company? < (b) What is the stock price forecast by market analysts in 12 months? < (c) What is the Total amount of Dividends over the last year (12 months) in US dollars? < (d) What is your CALCULATED discounted Present Value of the company based on all of its cash flows from the stock based on a 12% required return on investments in equity? < (e) Do you recommend to Buy, $ell, or Hold the stock. EXPLAIN your answer. < D1 P1 < P0 = (1 + ke) + (1 + ke) < Where: < P0 = the current price of the stock. The zero subscript refers to time period zero, or the present. < D1 = the total dividends paid at the end of year 1. < ke = the required return on investments in equity. < P1 = the forecast stock price at the end of year 1; the predicted sales price of the stock.