Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market

image text in transcribed
image text in transcribed
image text in transcribed
What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market return and risk- free rate from the Walmart WACC estimate. Answer to 2 decimal places in % format w/o % sign. Amazon's Bonds A Name 1 2 Amazon Com 2060-06-03 3 Amazon Com 2057-08-22 4 Amazon Com 2050-06-03 5 Amazon Com 2047-08-22 6 Amazon Com 4.95% 2044-12-05 7 Amazon Com 2037-08-22 8 Amazon Com 4.8% 2034-12-05 9 Amazon com 2030-06-03 10 Amazon Com 2027-08-22 11 Amazon Com 2027-06-03 12 Amazon Com 5.2% 2025-12-03 13 Amazon Com 2025-06-03 14 Amazon Com 3.8% 2024-12-05 15 Amazon Com 2024-08-22 16 Amazon Com 2023-06-03 17 Amazon Com 2023-02-22 18 Amazon Com 2.5% 2022-11-29 19 Amazon Com 3.3% 2021-12-05 20 Amazon Com 2020-08-21 21 22 D E H Maturity Referecne Time to Coupon Coupon Yield to Amount Amount Date Date Maturity Frequency Rate Maturity Outstanding Outstanding (Years) (9) (9) Market Value 6/3/2060 6/25/2020 39.97 Semi-Annually 2.70 2.63 2,000,000,000 $2,016,208,27.59 B/22/2057 6/25/2020 37.18 Semi Annually 4.25 2.67 2,250,000,000 $3.085,716,749.92 6/3/2050 6/25/2020 29.96 Semi-Annually 2.50 2.50 2,500,000,000 $2,500,399,000.28 8/22/2047 6/25/2020 27.18 Semi Annually 4.05 2.53 3.500,000,000 $4,537,695,197.38 12/5/2044 6/25/2020 24.46 SemiAnnually 4.95 2.62 1.500,000,000 $2,129,617,384.23 8/22/2037 6/25/2020 17.12 Semi Annually 3.88 2.34 2.750,000,000 $3,245,974,304.14 12/5/2034 6/25/2020 14.45 Semi-Annually 4.80 2.00 1.250,000,000 $1,687,177.234.35 6/3/2030 6/25/2020 9.95 Som-Annually 1.50 1.52 2.000.000,000 $1,995 464,781.50 8/22/2027 6/25/2020 7.16 Semi-Annually 3.15 1.193,500,000,000 $3,968.765,923.29 6/3/2027 6/25/2020 6.94 Semi-Annually 1.20 1.21 1,250,000,000 $1,248,965,970.26 12/3/2025 6/25/2020 5.44 Semi Annually 5.20 0.91 821,747,000 $1,069,227,237.01 6/3/2025 6/25/2020 4.94 Semi Annually 0.80 0.76 1.250,000,000 $1,252,168,869.26 12/5/2024 6/25/2020 4:45 Semi-Annually 3.80 0.75 1.250,000,000 $1,416,785,985.95 8/22/2024 6/25/2020 4.16 Semi-Annually 2.80 0.66 2,000,000,000 $2,175,217,285.59 6/3/2023 6/25/2020 2.94 Semi-Annually 0.40 0.45 1,000,000,000 $998,528,621.74 2/22/2023 6/25/2020 2.66 Semi-Annually 2.40 0,30 1,000,000,000 $1,055,784,620.84 11/29/2022 6/25/2020 2.43 Semi-Annually 2.50 0.52 1.250,000,000 $1,309,265,452.92 12/5/2021 6/25/2020 1.45 Semi-Annually 3.30 0.58 1,000,000,000 $1,039,056,097.67 8/21/2020 6/25/2020 0.16 Semi-Annually 1.90 0.37 1,000,000,000 $1,002,384,710.16 AME 12.29 Avg 2295 1.10 Total $32 BSS 4020128 Amazon's Beta Amazon y = 1.1634x +1.4463 R2 = 0.3077 30 20 Amazon Monthly Returns -10 15 -100 20 -30 S&P 500 Monthly Returns Amazon Stock Quote 11 AMZN US $ C 2436.88 -9.86 X2435.81/2436.910 2x1 On 22 May c Vol 2,867,079 0 2455.01PH 2469.850 L 2430.13D Val 7.0146 AMZN US Equity 90 Report D Profile Page 1/4 Security DescriptionEquity 2 Issue Info Ratios Revenue EPS AMAZON.COM INC FIGI BBGOOOBVPVB A BI Research Primer | BICO Classification E-Commerce Discretionary Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web based credit card payment, and direct shipping to customers. ... More 80 Price Chart | GP 9) Estimates | EE >> 13) Corporate Info Date (E) 07/24/2014www.amazon.com P/E 116.43 Seattle, WA, US Est P/L 12/20 124.94 Empts 840,400 (03/31/20) T12M EPS (USD) 20.9315) Management | MGMT Est EPS 19.50 16 Jeffrey P Bezos "Jeff" Est PEG 2.14 Chairman/President/CEO/TO Px/Chg 1D (USD) 2436.88/-.4% 1) Andrew R Jassy "Andy" 52 WK H (05/21/20) 2525.45 12) Dividend | DVD CEO Web Service 52 WK L (03/16/20) 1626.032 Ind Gross Yield N.A. 18) Jeffrey A Wilke "Jefr" VID Change/ 589.04/31.888 CEO Worldwide Consumer Mkt Cap (USD) 1,215.50 No cash dividends 12M Tot Rat 33.654 498.8M/422.7M Shrs Out/Float 0.81 Beta V SPX SI/' of Float 3.5M/0,83% 21 Depositary Receipts Days to Cover 0.6 Active Receipts What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market return and risk- free rate from the Walmart WACC estimate. Answer to 2 decimal places in % format w/o % sign. Amazon's Bonds A Name 1 2 Amazon Com 2060-06-03 3 Amazon Com 2057-08-22 4 Amazon Com 2050-06-03 5 Amazon Com 2047-08-22 6 Amazon Com 4.95% 2044-12-05 7 Amazon Com 2037-08-22 8 Amazon Com 4.8% 2034-12-05 9 Amazon com 2030-06-03 10 Amazon Com 2027-08-22 11 Amazon Com 2027-06-03 12 Amazon Com 5.2% 2025-12-03 13 Amazon Com 2025-06-03 14 Amazon Com 3.8% 2024-12-05 15 Amazon Com 2024-08-22 16 Amazon Com 2023-06-03 17 Amazon Com 2023-02-22 18 Amazon Com 2.5% 2022-11-29 19 Amazon Com 3.3% 2021-12-05 20 Amazon Com 2020-08-21 21 22 D E H Maturity Referecne Time to Coupon Coupon Yield to Amount Amount Date Date Maturity Frequency Rate Maturity Outstanding Outstanding (Years) (9) (9) Market Value 6/3/2060 6/25/2020 39.97 Semi-Annually 2.70 2.63 2,000,000,000 $2,016,208,27.59 B/22/2057 6/25/2020 37.18 Semi Annually 4.25 2.67 2,250,000,000 $3.085,716,749.92 6/3/2050 6/25/2020 29.96 Semi-Annually 2.50 2.50 2,500,000,000 $2,500,399,000.28 8/22/2047 6/25/2020 27.18 Semi Annually 4.05 2.53 3.500,000,000 $4,537,695,197.38 12/5/2044 6/25/2020 24.46 SemiAnnually 4.95 2.62 1.500,000,000 $2,129,617,384.23 8/22/2037 6/25/2020 17.12 Semi Annually 3.88 2.34 2.750,000,000 $3,245,974,304.14 12/5/2034 6/25/2020 14.45 Semi-Annually 4.80 2.00 1.250,000,000 $1,687,177.234.35 6/3/2030 6/25/2020 9.95 Som-Annually 1.50 1.52 2.000.000,000 $1,995 464,781.50 8/22/2027 6/25/2020 7.16 Semi-Annually 3.15 1.193,500,000,000 $3,968.765,923.29 6/3/2027 6/25/2020 6.94 Semi-Annually 1.20 1.21 1,250,000,000 $1,248,965,970.26 12/3/2025 6/25/2020 5.44 Semi Annually 5.20 0.91 821,747,000 $1,069,227,237.01 6/3/2025 6/25/2020 4.94 Semi Annually 0.80 0.76 1.250,000,000 $1,252,168,869.26 12/5/2024 6/25/2020 4:45 Semi-Annually 3.80 0.75 1.250,000,000 $1,416,785,985.95 8/22/2024 6/25/2020 4.16 Semi-Annually 2.80 0.66 2,000,000,000 $2,175,217,285.59 6/3/2023 6/25/2020 2.94 Semi-Annually 0.40 0.45 1,000,000,000 $998,528,621.74 2/22/2023 6/25/2020 2.66 Semi-Annually 2.40 0,30 1,000,000,000 $1,055,784,620.84 11/29/2022 6/25/2020 2.43 Semi-Annually 2.50 0.52 1.250,000,000 $1,309,265,452.92 12/5/2021 6/25/2020 1.45 Semi-Annually 3.30 0.58 1,000,000,000 $1,039,056,097.67 8/21/2020 6/25/2020 0.16 Semi-Annually 1.90 0.37 1,000,000,000 $1,002,384,710.16 AME 12.29 Avg 2295 1.10 Total $32 BSS 4020128 Amazon's Beta Amazon y = 1.1634x +1.4463 R2 = 0.3077 30 20 Amazon Monthly Returns -10 15 -100 20 -30 S&P 500 Monthly Returns Amazon Stock Quote 11 AMZN US $ C 2436.88 -9.86 X2435.81/2436.910 2x1 On 22 May c Vol 2,867,079 0 2455.01PH 2469.850 L 2430.13D Val 7.0146 AMZN US Equity 90 Report D Profile Page 1/4 Security DescriptionEquity 2 Issue Info Ratios Revenue EPS AMAZON.COM INC FIGI BBGOOOBVPVB A BI Research Primer | BICO Classification E-Commerce Discretionary Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web based credit card payment, and direct shipping to customers. ... More 80 Price Chart | GP 9) Estimates | EE >> 13) Corporate Info Date (E) 07/24/2014www.amazon.com P/E 116.43 Seattle, WA, US Est P/L 12/20 124.94 Empts 840,400 (03/31/20) T12M EPS (USD) 20.9315) Management | MGMT Est EPS 19.50 16 Jeffrey P Bezos "Jeff" Est PEG 2.14 Chairman/President/CEO/TO Px/Chg 1D (USD) 2436.88/-.4% 1) Andrew R Jassy "Andy" 52 WK H (05/21/20) 2525.45 12) Dividend | DVD CEO Web Service 52 WK L (03/16/20) 1626.032 Ind Gross Yield N.A. 18) Jeffrey A Wilke "Jefr" VID Change/ 589.04/31.888 CEO Worldwide Consumer Mkt Cap (USD) 1,215.50 No cash dividends 12M Tot Rat 33.654 498.8M/422.7M Shrs Out/Float 0.81 Beta V SPX SI/' of Float 3.5M/0,83% 21 Depositary Receipts Days to Cover 0.6 Active Receipts

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

Step: 3

blur-text-image

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

Personal Finance

Authors: Jeff Madura

6th Edition

0134082915, 9780134082912

More Books

Students also viewed these Finance questions

Question

What is meant by the cost of quality?

Answered: 1 week ago