Amazon (AMZN) Financial Statement Analysis

NOTE: For this homework use AMZN's financial statements which are publicly available at www.sec.gov. Use the most recent 10-K that has a release date of 2/2/2018.

1. Using the 2017 year-end financial numbers calculate each of the ratios found on Table 3.5 of the book. These ratios can also be found in the Chapter 3 presentation on Slide 11 (labeled Table 3.5). For the market value items, please use a market price of $1890 per share.

2. Show the components for AMZN's DuPont Identity.

3. What internal growth rate should AMZN be able to achieve without raising any additional external capital?

4. What is AMZN's sustainable growth rate? How much new debt would AMZN be expected to issue by year-end 2018, if AMZN grows at its sustainable growth rate?