Suppose amazoncom inc pays no dividends but spent 2 billion, Ask an Expert

Management Studies

Suppose Amazon.com Inc. pays no dividends but spent $2 billion on share repurchases last year.

If Amazon's equity cost of capital is 8%, and if the amount spent on repurchases is expected to grow by 6% per year, estimate Amazon's market capitalization. If Amazon has 450 million shares outstanding, what stock price does this correspond to?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M91677130

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