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
Correct Answer:
Verified
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