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Author Question: Amazon.com Inc does not currently pay a dividend. Analysts expect Amazon to commence paying annual ... (Read 46 times)

elizabeth18

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on: Jul 10, 2018
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?
  A) 19.93
  B) 21.37
  C) 22.03
  D) 22.32
  E) 25.00

Question 2

The slope of the characteristic line is beta.
 
  Indicate whether the statement is true or false


parshano

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Right on time. Thanks a bunch.

Answer to Question 2

TRUE


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