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Jim Cramer on Bloomberg News recently commented that Amazon stock will start paying dividends in the near future because of all of the cash flow
Jim Cramer on Bloomberg News recently commented that Amazon stock will start paying dividends in the near future because of all of the cash flow that it generates. When pressed on the issue, Jim Cramer made a bold forecast that Amazon will start paying its first dividend 3 years from now in the amount of $25 per share. Over the following 7 years, Jim Cramer projected that the dividends would grow by 10% per year, after which the growth rate would be a constant rate of 3%, forever. If the appropriate discount rate for Amazon stock is 11%, what should the stock sell for today based on a discounted valuation of the future dividends that the Jim Cramer has projected
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