Suppose

Amazon.com Inc. pays no dividends but

spent $$5\mathrm{.}05$ billion on share repurchases last year.

If Amazon's equity cost of capital is $12\mathrm{.}2\%,$ and if the

amount spent on repurchases is expected to grow by

$8\mathrm{.}4\%$ per year, estimate Amazon's market

capitalization. If Amazon has $6\mathrm{.}16$ billion

shares outstanding, what stock price does this

correspond to$?$

Estimate Amazon's market capitalization.

Amazon's market capitalization is $ billion. Solve please

$($Round to two decimal places.$)$