AmazonCom Inc

question 7

Multiple Choice

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

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Definitions:

Dialectical Behaviour Therapy

A cognitive-behavioral treatment developed for individuals with self-harm behaviors, focusing on teaching problem-solving skills, acceptance, and emotional regulation.

Borderline Personality Disorder

A mental health disorder characterized by a pattern of ongoing instability in moods, behavior, self-image, and functioning, often resulting in impulsive actions and unstable relationships.

Linehan

Refers to Marsha Linehan, a psychologist known for developing Dialectical Behavior Therapy (DBT), particularly for treating borderline personality disorder.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.