Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose Amazon.com Inc.pays no dividends but spent $3.15 billion on share repurchases last year. If Amazon's equity cost of capital is 7.8%, and if the

image text in transcribed
Suppose Amazon.com Inc.pays no dividends but spent $3.15 billion on share repurchases last year. If Amazon's equity cost of capital is 7.8%, and if the amount spent on repurchases is expected to grow by 6.8% per year, estimate Amazon's market capitalization. If Amazon has 451 million shares outstanding, what stock price does this correspond to? + Estimate Amazon's market capitalization Amazon's market capitalization is billion (Round to two decimal places) Amazon has 451 million shares outstanding, what stock price does this correspond to? The stock price per share is $(Round to the nearest cont.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Islamic Finance

Authors: Karen Hunt-Ahmed

1st Edition

1118180909, 978-1118180907

More Books

Students also viewed these Finance questions