Amazon plans to pay dividends $3, $4 and $5 over the next three years respectively. After three

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Amazon plans to pay dividends $3, $4 and $5 over the next three years respectively. After three years, dividends are expected to grow perpetually at a 6% rate. What is the value of the stock if investors require a 12% return to purchase the stock?

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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Posted Date: Apr 18, 2024 02:29 AM

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Amazon plans to pay dividends $3, $4 and $5 over the next three years respectively. After three

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To calculate the value of the stock we need to use the formula for the present value of a growing pe... View the full answer

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