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Problem 5: The Amazing.com Corporation years. Its sales have been growing at 25% per year. (a) Can you apply the constant growth rate DDM to

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Problem 5: The Amazing.com Corporation years. Its sales have been growing at 25% per year. (a) Can you apply the constant growth rate DDM to estimate its intrinsic value? Explain. (b) It is expected to pay its first cash dividend $I per share 5 years from now. It its market currently pays no cash dividends, and it is not expected to for the next S capitalization rate is 20% and its dividends are expected to grow by 10% per year, what you estimate its intrinsic value to be? would (c) If its current market price is $100 per share, what would you infer the expected growth rate of its future dividends to be (assuming no dividends paid until 5 years from now

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