Question
I need help with part of a project. I have attached the prompt with the full details of the project.The company I chose is Amazon.I
I need help with part of a project. I have attached the prompt with the full details of the project.The company I chose is Amazon.I need todetermine/calculatethecost of debt,cost of preferred stock, andcost of common equityfor Amazon (AMZN).I also need to show the work with Excel calculation backups.
Any help would be greatly appreciated.
Thanks!
For AMAZON In this project, you are supposed to be a financial manager working for a big corporation and you have to apply the knowledge obtained from our Finance course to determine the cost of debt, cost of preferred stock, cost of common equity, capital structure, and the weighted average cost of capital (WACC) for a publicly-traded company of your choice. A. Choosing a Company : choose a publically US traded company. (hint: try finance.yahoo.com) ( AMAZON) B. Be sure to thoroughly understand the company. What to include in the PowerPoint: 1.Business Overview and Strategy: Briefly describe the company, its Mission, Vision, location and products, give a little bit about it 's industry, and discuss its strategy for success. Refer especially to business description and risk factors of your company. MAXIMIUM of 2 slides. 2. Then determine the cost of debt, cost of preferred stock, cost of common equity, capital structure, and the weighted average cost of capital (WACC) for your assigned publicly-traded company (see above). 3. Develop this (item #2) into a PowerPoint where you explain how you calculated those numbers (Include an Excel spreadsheet of the cost of debt, cost of preferred stock, cost of common equity, capital structure, and the weighted average cost of capital (WACC along with the PowerPoint , ) and what was your reasoning. 4. Include in the Appendix to the PowerPoint , the financial statements you used or other documents to get those numbers. 5. You will use the WACC as the discount rate to conduct capital budgeting analysis for a project that the firm is considering and then decide whether it should be accepted or not which is " Building a new Building" for $1 million. If you do not have a number you need, research it and state your assumptions that you used to get the missing number.
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