Question: Amazon.com has never paid a dividend, but in July 2013 the market value of its stock was $139 billion. Does this invalidate the dividend discount

Amazon.com has never paid a dividend, but in July 2013 the market value of its stock was $139 billion. Does this invalidate the dividend discount model?

Step by Step Solution

★★★★★

3.42 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

No this does not invalidate the dividend discount model ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

968-B-C-F-B-V (1375).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Some statements are not considered hearsay because these statements are not being offered to prove the truth of the matter asserted in the statements. Thus, you must always ask yourself what is being...

Amazon.com has never paid a dividend, but in August 2010 the market value of its stock was $57 billion. Does this invalidate the dividend discount model?

EMC Corporation has never paid a dividend. Its current free cash flow is $400,000 and is expected to grow at a constant rate of 5 percent. The weighted average cost of capital is WACC _ 12%....

Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively, and after the second year it is expected to grow at a constant...

1: Dividend discount model. Amazon.com has never paid a dividend, but in august 2010 the market value of its stock was $57 billion. Does this invalidate the dividend discount model? Q2: Dividen...

2-Stock Quotes. Go to finance.yahoo.com and get trading quotes for IBM. a. What is the latest stock price and market cap? b. What is the bid-ask spread? c. What is IBMs dividend payment and dividend...

Problem 7 - 9 Dividend Discount Model ( LO 2 ) Amazon has never paid a dividend, but in March 2 0 1 8 , the market value of its stock was greater than $ 7 6 0 billion. Does this invalidate the...

Amazon has never paid a dividend, but in December 2015, the market value of its stock was greater than $300 billion. Does this invalidate the dividend discount model?

Amazon has never paid a dividend, but in March 2018, the market value of its stock was greater than $760 billion. Does this invalidate the dividend discount model?

Amazon has never paid a dividend, but in May 2021, the market value of its stock was greater than $1.6 trillion. Does this invalidate the dividend discount model?

Amazon has never paid a dividend, but in January 2 0 2 1 , the market value of its stock was greater than $ 1 . 6 trillion. Does this invalidate the dividend discount mode

Briefly describe the four types of risk discussed in the chapter.

A government with a beginning inventory of supplies of $100 in its General Fund and had the following transactions during the year (all amounts are in thousands). Transactions: Ordered supplies with...

2 5 2 1 5 = A . 4 2 0 B . 4 1 5 C . 8 1 5 D . 4 5

Let's Do It This Way: Write ALT if the statement is always true, SOT if the statement is sometimes true and NET if the statement is never true. Write your answers in your Mathematics notebook. 1. If...

Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%) Number of units Sale price per unit Variable costs...

4. Which ligand has the strongest trans effect in reactions of trans-[PECIL(PE 3)2]? A) CI B) H C) CH3 D) CHs

A presidential candidate's aide estimates that, among all college students, the proportion p who intend to vote in the upcoming election is at most 65%. If 17 out of a random sample of 255 college...

The City of Smithville uses an Internal Service Fund (ISF) to provide centralized printing services for all City agencies. City agencies are billed on a per-page basis (number of pages in a document...

Which of the following is not an example of quality assurance? A. Examining the way deliverables are produced to see if processes are being followed B. Examining deliverables to see if they meet...

Look at the spot interest rates shown in Problem 25. Suppose that someone told you that the five-year spot interest rate was 2.5%. Why would you not believe him? How could you make money if he was...

Look again at the spot interest rates shown in Problem 25. What can you deduce about the one-year spot interest rate in three years if . . . a. The expectations theory of term structure is right? b....

Suppose that you buy a two-year 8% bond at its face value. a. What will be your nominal return over the two years if inflation is 3% in the first year and 5% in the second? What will be your real...

Deneti, nemlilik hakkndaki n yargsn bir btn olarak mali tablolara gre deil, mali tablolarn blmlerine ayrr. Denetinin n yanll hesap bakiyelerine tahsis etmesi iin kullanlan terim nedir? Bilano...

What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent? Group of answer choices...