Suppose Amazon.com Inc. pays no dividends but spent $3 billion on share repurchases last year....
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Accounting
Suppose Amazon.com Inc. pays no dividends but spent $3 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 6.5% 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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