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1) Conduct a ratio analysis of the company Amazon https://finance.yahoo.com/quote/WMT/balance-sheet?p=WMT Use these 13 ratios: Classification System A. Profitability ratio -1. Profit margin -2. Return on

1) Conduct a ratio analysis of the company Amazon https://finance.yahoo.com/quote/WMT/balance-sheet?p=WMT

Use these 13 ratios:

Classification System

A. Profitability ratio

-1. Profit margin

-2. Return on assests(investment)

-3 Return on equity

B. Asset-utilization ratios

-4. Receivable turnover

-5. Average collection period

-6. Inventory turn over

-7. Fixed asset turnover

-8, Total asset turnover

C. Liquidity ratios

-9. Current ratios

10. Quick ratios

D. Debt-utililization ratios

-11. Debt total assets

-12. Times interest earned

-13. Fixed charge coverage

a. Analysis should include both numeric calculation and personal opinion of the ratio analysis

b. Note: Calculations can be completed on separate paper, but description of the calculation should be typed.

Assuming you wanted to invest ONLY in the company you select.

You want to buy 20 shares per month for 20 years, calculate how much money you need today to do so.

c. Assume constant stock price

d. Select risk free interest rate and defend the value you select. Assume the company is offering a $1million, 30-year bond at a fixed rate of 7.5% compounded monthly.How much should the company sell it for?

Based on your ratio analysis in part (4), are bonds or stocks a better pick? Why?

Discuss the stock market trend associated with the company you selected.

Perform a CAPM study of the stock Would you invest, why or why not

Would you invest, why or why not?

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