Question: answer question 6,7 and full asneer agian question 6 and 7!!!!! 5) Devon Oil Services suffered a large loss and suspended its dividend. Suppose you

answer question 6,7 and full asneer agian question 6 and 7!!!!!
answer question 6,7 and full asneer agian question 6 and 7!!!!! 5)

5) Devon Oil Services suffered a large loss and suspended its dividend. Suppose you do not expect Devon to resume paying dividends until December 1"t 2021. You expect Devon's annual dividend in 2021 to be $0.40, and you expect the annual dividend to grow by 5% per year thereafter. If Devon's equity cost of capital is 11%, what is your expected value of a share of Devon for December 1 st, 2018 ? 6) You notice that PepsiCo (PEP) has a stock price of $52.66 and EPS of $3.20. Its competitor, the Coca-Cola Company (KO), has EPS of \$2.49. Estimate the value of a share of Coca-Cola stock using only this data. 7) Suppose Amazon.com, Inc. pays no dividends but spent $2.98 billion on share repurchases last year. If Amazon's equity cost of capital is 7.6%, and if the amount spent on repurchases is expected to grow by 6.5% per year, estimate Amazon's market capitalization. If Amazon has 474 million shares outstanding, what stock price does this correspond to

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