$.$ Amazon$$s stock price is traded about $$180.$ Consensus analysts$$ forecasts about Amazon$$s earnings per share in $2024$ and $2025$ are $$4\mathrm{.}54$ and $$5\mathrm{.}76,$ respectively. The book value per share at the end of $2023$ is about $$21.$ The company has not paid out any dividend yet, and has rarely done any repurchase in recent years. The risk free rate for US treasury $10-$year bond is $4\mathrm{.}5\%$ and the market risk premium is estimated to be around $4\mathrm{.}6\%.$ Firm Beta is estimated to be about $1\mathrm{.}15.$

a$.$ Forecast book value, return on common equity, and residual earnings for the year end of $2024$ and $2025.$

b$.$ Provide a building block analysis about Amazon$$s current stock price using two years analysts forecasts.

c$.$ What is the implied market$$s expectation about growth rate of Amazon$$s long$-$term residual income after $2025?$

d$.$ If you are a value investor, how would you evaluate Amazon price and make investment decisions? Also what additional factors you may need to find out more information about in making your final decision?. Amazon$$s stock price is traded about $$180.$ Consensus analysts$$ forecasts about Amazon$$s earnings per share in $2024$ and $2025$ are $$4\mathrm{.}54$ and $$5\mathrm{.}76,$ respectively. The book value per share at the end of $2023$ is about $$21.$ The company has not paid out any dividend yet, and has rarely done any repurchase in recent years. The risk free rate for US treasury $10-$year bond is $4\mathrm{.}5\%$ and the market risk premium is estimated to be around $4\mathrm{.}6\%.$ Firm Beta is estimated to be about $1\mathrm{.}15.$

a$.$ Forecast book value, return on common equity, and residual earnings for the year end of $2024$ and $2025.$

b$.$ Provide a building block analysis about Amazon$$s current stock price using two years analysts forecasts.

c$.$ What is the implied market$$s expectation about growth rate of Amazon$$s long$-$term residual income after $2025?$

d$.$ If you are a value investor, how would you evaluate Amazon price and make investment decisions? Also what additional factors you may need to find out more information about in making your final decision?