Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In January 2021, Amazon's annual dividend is 0.40dollar/share. The analyst expected a dividend of 0.45dollar/share next year. Amazon president acknowledged the analyst's forecast and announced

In January 2021, Amazon's annual dividend is 0.40dollar/share. The analyst expected a dividend of 0.45dollar/share next year. Amazon president acknowledged the analyst's forecast and announced that it will continue ti deliver dividend of the same growth every year for three years (until January 2024). Amazon also going to launching new product in January 2025. The dividend would double the dividend from the previous yr on January 2025. The increase in the dividend from 2025 to 2029 would almost double the increase drom 2021 to 2024. In 2030, stckholder akso got the same dividend as in 2029. The curent interest rate is at ten percent a year and will remain until 2026. After that, the interst rate will fall to five percent for the remainingtime.
Please calculate the dividend in 2026, stock price in 2025, and the stock price in 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions