Jim Cramer of CNBC recently commented that Amazon will start paying dividends in the near future because of all of the cash flow that it generates (coupled with a nearly $17 billion cash balance). When pressed on the issue, Jim made a bold forecast that Amazon will start paying its first dividend 5 years from now in the amount of $30 per share. Over the following 10 years, Jim projected that the dividends would grow by 20% per year, after which the growth rate would be a constant rate of 5%, forever. If the appropriate discount rate for Amazons stock is 12%, what should the stock sell for today based on a discounted valuation of the future dividends that Jim Cramer has projected?

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