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Suppose the same firm Amazon will distribute a $ 5 dividend next year. And you expect the dividend to grow at 5 % for three
Suppose the same firm Amazon will distribute a $ dividend next year. And you expect the dividend to grow at for three years. Then the growth rate declined to in the following three years. And finally, the growth rate will decline to in all following years. You also calculated the expected return on Amazon would be
What will be the price you are willing to pay to buy this stock now?
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