1. Calculate the (compound) growth rate of dividends over the past 10 years
2. Calculate the growth rate using the plowback ratio (b) and ROE using the most recent dividend and ROE
3. Use the above estimations of the growth rate, the most recent dividend, and the cost of equity of the firm to calculate the intrinsic value.
4. Compare the intrinsic value with the current market price of the firm along with your evaluation of the industry and overall economy and provide a recommendation to buy, sell, or hold.

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BUSINESS: 0111320000111 lsoneafthe largest onlhe retailers.'ihe Audiblemm, '08,2qip0s, 09.141103 Foods Market, '17.Hasdiout Cash Assets 19303 25931 30906 company opened its virtual doorsin 1995_Sales breakdown [2016}: 230,300 employees. Oinersldirectors own 17.0% 01 outsiandhg [lam-glee (Avg ca} La\"; Lg; 131133: media (books, music, and videos; 15% 01 sales),elect.rorics (30%); common stock (hcluding Mr. 332051333) (4111 proxy). Presi- Current Assets 36474 45731 m other (25%}. International sales, 32% of total. Third-party sellers dent, Chairman 31 01131 Executive Ofcer: Jeffrey Bezns. In- Aocts Payable 20397 25309 34616 (01311150313712) mum for abuut 20% 01 sets. Seasmalty; (.14 ac:- mrporated; Delaware. Addr; 410 Terry Avenue North, Seattle, WA Deb'tDue __ __ __ (lmed for 32% 01 '16 revenue. Acquired CDNOW, '02, 93103-5210.Tel.:206-266-1000.Imemeimmemazmmm. Other 13502 13507 23257 Since our November review, shares of 7%, to $4.55 a share. CurrentLIah. 33399 43316 57333 Amazonxom continued to rise. Indeed. We have tempered our share-net out- ANNUALRATES P331 P381 50'4\"?\" over that interim. the equity's price has look for this year. Amazon appears 33:23:55\") 127% 24.5% 12.12%: advanced about 30%. This comes after the poised to register a revenue advance of ap- "Cash Flow" :31qu, 34:53, 21:59:, company continued to successfully imple- proximately 25%. to $220 billion in 2018. Eamlngs 10.5% 4.0% 60.0% ment signicant growth strategies. This ought to reflect organic growth at the glu'gfggsue 5:50:16: 150:}; 3001:: Meanwhile, the company posted North American and International seg- ' ' ' mixed financial results for 2017. On ment. Having Whole Foods contribute to Cal- Full the upside,revenues increased 31%, to al- the top and bottom lines for the entire ends Y9" most $178 billion. due to solid. double-digit year will also be a plus. What's more. the 2014 2933 3393-5 gains across all of Amazon 's divisions. The AWS segment continues to expand global- 2015 35747 070% North American and International seg- Iy. That unit was recently selected by 12.31; 80433 gag ments experienced growth .of 33% and entities like Symantec.the N'FL.and Walt 2018 11111 23%. respectively. Those units make up Disney Co. for cloud services. On the the lion's share of overall operations. Else- downside. the buildout for these rapid Gal- HMNGSPERSHABE' FI-Ill where. the Amazon Web Services unit growth initiatives is weighing on margins. ends \"\"31 Junj 5011.30 \"\"31 1" logged volume gains of about 43%, which Consequently, we have sliced $2 .45 off our 2014 23 C127 1195 ~45 052 was nicely additive to overall operations. annual earnings estimate. to $9 .00 a 2015 \"-12 ~19 '17 1.00 125 Finally. the recent acquisition of Whole share. This would still represent a 100% :3}; 1'07 1'13 g: 275 :55 Foods Market has been a contributing fac- gain over 2017's somewhat easy com- m.\" 2'2: 1'53 \"5 3:22 900 tor. 0n the profitability front. margins parison. Other interesting developments ' ' ' ' were squeezed by rising operating ex- included a push into brick 82. mortar stores 133" MMEHVHVDBDSMD F9" penses due to spending on the buildout of with the cashierless grocery store in ends \"\"31 3011.30 Sep Dec-3' Year the fulllment network. and technology. Seattle; and the acquisition of Sqrrl. a 2014 content and marketing efforts. On balance. cyber security start-up. 2015 NOWHDMDENDS after excluding $789 million ($1.60 a At this juncture, Amazon shares ap- 201G BEINGPAID share) of nonrecurring provisional tax ben- pear richly valued. :1; efits from the U.S. Tax Act, earnings fell Bryan J. Fang February 9, 2018 (A) Diluted earnings. Excludes gonduiill: '02, (13}. hcludes stout-timed mpensalinn; '02, (19311; '03. [214}; '04. (14); '05, (2041; '06. (2441; '07. [44]; '03. (5410; '09. (7710- EX- 3311! \\hlua lire, hi: ll 11-EPLBJEi-EFHSMJT 53; eludes mergertaoqtisitim 00515: '02, {110}; '03, sum due to rounding. Next earnhgs report due (3211.). Excludes equity in losses; '02. (0113}. Ex- late Ap eludes oliier nonrecurring items: '04, 543; '05 '12, (3713}. 00y. revenues and 395. may not mammalmdalismdmdhmsmmbmmbemiaemdis B_E FCFI ANYEFFDFE CFI 011165035 l-EFEN. 1113 or mherqrndned. rend madamedhaypedeieamicadhe-hm or ril. , (a) in millions. prodded 11111-1001 wara'li'es d 'mmisaidybremeibersm mm'rem'aijrtm'd Lee. hgereigcrmrehgeypedaeemuicpcmmsedcecrpmn Germany's FimmlalSh-engih A+ stock's Price 51311111111 50 Prim (i'uwth Persistence 100 EUnl 0: Predlemili 10 5:11 To subscribe call 11300-VALLEIJ0E