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Question 19: Amazon.com Inc. does not currently pay a dividend. Analysts expect Amazon to commence paying annual dividends in three years. The first dividend is
Question 19:
Amazon.com Inc. does not currently pay a dividend. Analysts expect Amazon to commence paying annual dividends in three years. The first dividend is expected to be \\( \\$ 2 \\) per share. Dividends are expected to grow from that point at an annual rate of \4 in perpetuity. Investors expect a \12 return from the stock. What should the price of the stock be today? \\( \\$ 19.93 \\) \\( \\$ 21.37 \\) \\( \\$ 22.03 \\) \\( \\$ 22.32 \\) \\( \\$ 25.00 \\)Step by Step Solution
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