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Amazon will pay a dividend of $25 per share (which is basically its current EPS), starting 5 years from today. If the discount rate is
Amazon will pay a dividend of $25 per share (which is basically its current EPS), starting 5 years from today. If the discount rate is 7.5% and the estimated growth rate is 6% per year forever. What should the value of Amazon be today, using the dividend discount model. Compare this to the actual price of Amazon.
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