Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Let's say AMZN has a current price of $ 1 5 7 . 8 8 and it will start to pay dividends in 1 0
Let's say AMZN has a current price of $ and it will start to pay dividends in years. You require a rate of return on your investment. Imagine that AMZN dividend payments will increase at a rate of forever. What is the amount of dividend in year that makes you want to purchase the stock at its current price? Now, get the current market cap and calculate the current number of shares outstanding. Multiply your D that you just calculated by the number of shares outstanding. What is the total payment that AMZN will make in year Give your answer in billions.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started