Question
Suppose Amazon.com Inc. pays no dividends but spent $ 3.06billion on share repurchases last year. IfAmazon's equity cost of capital is 8.5%, and if the
Suppose Amazon.com Inc. pays no dividends but spent $ 3.06billion on share repurchases last year. IfAmazon's equity cost of capital is 8.5%, and if the amount spent on repurchases is expected to grow by 6.1 % peryear, estimateAmazon's market capitalization. If Amazon has 426 million sharesoutstanding, what stock price does this correspondto?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
