Question: a. Briefly define EVA and MVA. b. Describe both the level of and historical trend in Amazons EVA and MVA. c. Explain whether investors expect
a. Briefly define EVA and MVA.
b. Describe both the level of and historical trend in Amazon’s EVA and MVA.
c. Explain whether investors expect Amazon's and Costco's EVA to grow or decline based on the firm’s share price. What percentage of each firms’ valuation is dependent on future growth in EVA?
d. Based only on the information provided in question 11, what is your initial opinion on whether Amazon is over-valued, under-valued, or fairly-valued?
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