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If Amazon's next dividend is $3.40, and you expect dividends will be $4.00 thereafter for seven...

If Amazon's next dividend is $3.40, and you expect dividends will be $4.00 thereafter for seven years, and after that you expect they will grow at a rate of 1.7% indefinitely, what would you be willing to pay for a share of Amazon stock if the required return is 4.7 percent?

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Year Cash flows $3.40 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $135.60 pv @ 4.7% 0.9551 0.9122 0.8713 0.8322 0.7948 0.7591 0

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