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1) Amazon plans to pay a dividend of $6.00 in 2022 and it will pay a dividend of $8.00 in 2023. The dividends will stay
1) Amazon plans to pay a dividend of $6.00 in 2022 and it will pay a dividend of $8.00 in 2023. The dividends will stay the same thereafter.
I) Given the required return of 15 percent, figure out the stock price in 2022 (SP1) based on the dividend at Year 2023.
II) Given the required return of 15 percent, figure out the stock price in 2021 (SP0) based on both the stock price at Year 2022 (SP1) and dividend at Year 2022.
Please show formulas used if done on excel. Thank you.
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