1. 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.
2. 1. Given the required return of 15 percent, figure out the stock price in 2022 (SP₁) based on the dividend at Year 2023. (20points)
3. 2. 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. (20points)