Dividend Policy and Retained Earnings The year is 2002 and you are an investor in a company called "Amazon." You are attending an annual shareholder meeting, where their founder Jeff is talking about building warehouses all around the country. The meeting progresses to the Q&A section and it's clear the shareholders are not pleased with the lack of dividends so far. Listen to their concerns and offer advice on Amazon's dividend policy. How would a one-time dividend affect the value of Amazon stock if it were announced today? Materials on the right have been updated >>> A one-time dividend would increase the stock price today. A one-time dividend would decrease the stock price today. A one-time dividend would not affect the stock price today. Stocl Shar Mark Exce Divid

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
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Stock price
$57.00
Shares outstanding
11,656,000
Market cap
$664,392,000
Excess Cash
$106,560,000
Dividend per share
$9.14

 

Dividend Policy and Retained Earnings
The year is 2002 and you are an investor in a company called
"Amazon." You are attending an annual shareholder meeting, where
their founder Jeff is talking about building warehouses all around the
country. The meeting progresses to the Q&A section and it's clear the
shareholders are not pleased with the lack of dividends so far. Listen
to their concerns and offer advice on Amazon's dividend policy.
Transcribed Image Text:Dividend Policy and Retained Earnings The year is 2002 and you are an investor in a company called "Amazon." You are attending an annual shareholder meeting, where their founder Jeff is talking about building warehouses all around the country. The meeting progresses to the Q&A section and it's clear the shareholders are not pleased with the lack of dividends so far. Listen to their concerns and offer advice on Amazon's dividend policy.
How would a one-time dividend affect
the value of Amazon stock if it were
announced today?
Materials on the right have been updated >>>
A one-time dividend would increase the
stock price today.
A one-time dividend would decrease the
stock price today.
A one-time dividend would not affect the
stock price today.
Stocl
Shar
Mark
Exce
Divid
Transcribed Image Text:How would a one-time dividend affect the value of Amazon stock if it were announced today? Materials on the right have been updated >>> A one-time dividend would increase the stock price today. A one-time dividend would decrease the stock price today. A one-time dividend would not affect the stock price today. Stocl Shar Mark Exce Divid
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