Fundamentals of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Fundamentals of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259722615
Author: Richard A Brealey, Stewart C Myers, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 7, Problem 9QP

Dividend Discount Model. Amazon has never paid a dividend, but in December 2015, the market value of its stock was greater than $300 billion. Does this invalidate the dividend discount model?

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(Calculating rates of​ return)  On December   17​, ​2007, the common stock of Google Inc.​ (GOOG) was trading for ​$   669.23.  One year later the shares sold for only ​$   315.24.  Google has never paid a common stock dividend.  What rate of return would you have earned on your investment had you purchased the shares on December   17​, ​2007?           Question content area bottom Part 1 The rate of return you would have earned is   enter your response here ​%.  ​(Round to two decimal​ places.)
(Related to Checkpoint 7.1) (Calculating rates of return) On December 5, 2007, the common stock of Google Inc. (GOOG) was trading for $698.51. One year later the shares sold for only $283.99. Google has never paid a common stock dividend. What rate of return would you have earned on your investment had you purchased the shares on December 5, 2007? ... The rate of return you would have earned is %. (Round to two decimal places.)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY