The following appears in an investor relations website for Amazon.com: We have never declared or paid cash dividends on our common stock. We intend to retain all future earnings to finance future growth and, therefore, do not anticipate paying any cash dividends in the foreseeable future.

Do you think this statement will adversely impact the value of the stock of Amazon.com?

Please answer the question under two scenarios: without and with capital market frictions. For the latter, what types of capital-market frictions should have an effect on the answer? Explain.