Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Corporate Finance it's about Whole Foods purchase by Amazon. below are the questions, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has

image text in transcribed

Corporate Finance

it's about Whole Foods purchase by Amazon.

below are the questions, also the documents are attached.

QUESTIONS:

1.The investment thesis on AMZN has ALWAYS been that the company has traded off rising retail costs for declining technology costs. That said, the company has clearly signaled its intent to more aggressively invest in new growth options and some analysts have for some time identified Groceries as one of the most logical places for Amazon to expand into. So with that as backdrop, how do you view this development? Is it surprising? Remember you should support your answer with data.

2.What does Amazon see in Whole Foods transaction? Give 3 reasons why AMZ is buying WHF.

3.In the Deutsche Bank Report (page 3) under the title 'AMZN/SFM is a success...so why AMZN + WFM? Five key reasons are highlighted. Which is the most important one for you and why.

4.In that same report, page 11, we have the impact of WHF on AMZ valuation.

a.Explain the differences between Pre-Deal and After Deal Valuation

b.Why the post-deal valuation has the same value with and without synergies

5.Would you invest in Amazon at 1,000 USD? Why?

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis The Complete Resource for Financial Market Technicians

Authors: Charles D. Kirkpatrick, Julie R. Dahlquist

1st edition

134137043, 134137049, 978-0131531130

More Books

Students also viewed these Finance questions

Question

Have I allowed for this item in my budget?

Answered: 1 week ago