Question: Use the template for the ABC Corp. valuation in section 2.6 to value Amazons stock (AMZN). Assume that the weighted average cost of capital for
Use the template for the ABC Corp. valuation in section 2.6 to value Amazon’s stock (AMZN).
Assume that the weighted average cost of capital for AMZN is 10%, the growth rate for years 1–5 is 4%, and that the long-term growth rate is 0%. (Details and a template are on the website that accompanies this book.)
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