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Pay no dividends for the next six years

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Amazon company is expected to pay no dividends for the next six years. At the end of the sixth year it will pay a dividend of $35 and cease operations. How much would you pay for the stock if you require a 10% rate of return?

  • $16.93
  • $14.11
  • $19.76
  • $25.40
  • $28.22
  • $22.58

Reference no: EM131781759

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