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2. If the risk-free rate is 4.39% and the market risk premium is 6.75%, what is Amazons cost of equity using the beta .0408 and

2. If the risk-free rate is 4.39% and the market risk premium is 6.75%, what is Amazons cost of equity using the beta .0408 and the CAPM.

3. Assume that Amazon just paid a dividend of $0.75/share, they expect the dividend to rise at a constant rate of 10%, and the current price of the stock is $88.25. Is Amazon considered over or under-valued using the information from (2).

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