In June 2023, Tesla traded at $215 per share on a book value of $75 per share. Analysts were estimating that Tesla would earn $4.50 per share for the year ending December 2023. The firm was paying an annual dividend at the time of $0.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2023.

In June 2023, Tesla traded at $215 per share on a book value of $75 per share. Analysts were estimating that Tesla would earn $4.50 per share for the year ending December 2023. The firm was paying an annual dividend at the time of $0.00 per share. Calculate the return on common equity (ROCE) that analysts were forecasting for 2023.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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