Amazon equity beta Market risk premium 1.5 5.00% 10-year Treasury 1 Jan 2020 Cost of equity 1.90% Cost of debt 2.00% Shares outstanding 31 Dec 2019 504 million Debt/ (debt + equity) 2.60% Tax rate 17.0% Discount rate (WACC) Growth rate

Q: 1. What is sensitivity analysis?

A: A sensitivity analysis is a technique or study that investigate how multiple values of an…

Q: How has financial market integration affected interest rate movements?

A: Financial market integration is associated with the financial market being closely linked with…

Q: Explain an example of Return on equity.

A: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by…

Q: What do you mean by Financial Market?

A: Financial market: By distributing resources and producing liquidity for businesses and…

Q: Explain how a change in interest rates in the economy would beexpected to affect each component of…

A: Introduction:   The interest rate is the percentage value of the total borrowed amount that a…

Q: What is Horizontal Analysis in Financial Analysis?

A: Financial statement analysis is the process of analyzing the financial statements of a company. It…

Q: Define Equity method.

A: Equity Method:   Equity method is a accounting method used for inter corporate  investments. when…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Does dividend policy affect on Debt to equity ratio? And what does the negative D/E ratio indicat

A: Debt equity ratio indicates the level of use of financial leverage in a company and the formula for…

Q: Does net debt ratio provide useful information to the investor? Are the NonGAAP measures, ROCE and…

A: Investors are the resources who bring their capital to the company with an intention to earn the…

Q: Summarize some of the Key Financial Ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Assume that the average firm in C&J Corporation's industry is expected to grow at a constant rate of…

A: Computation of required return is as follows:Dividend yield+growth rate8%+5%13%D1=(2.5×1.5)…

Q: Define common equity (net worth)

A: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to…

Q: explain the strategies that enhance the return on equit

A: Return on equity is a very important financial ratio. This ratio is essentially a measure of…

Q: Why are they important for policymakers and investors, also in what situations and why do they use…

A: GDP Gross domestic product (GDP) is the measure of total value of goods and services produced within…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: What is the mathematical formula of dollar duration of equity and how do you derive it?

A: Dollar duration of equity is a financial metric used to measure the sensitivity of the market value…

Q: What goes in the boxes for equity?

A: The following accounting equation is the basics for all financial accounts:  Assets = Liabilities +…

Q: Should short-term

A: The cost of capital is the rate of return that is expected by the firm to earn from its investment…

Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: What is the estimated cost of equity using thedividend growth approach?

A: Introduction: Dividend growth model is an approach which assumes dividends are that at a constant…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: How does the debt-to-equity ratio affect the return on equity?

A: Debt to equity ratio: The debt-equity ratio is also known as an external and internal equity ratio.…

Q: Why is the income statement called a dynamic financial statement?

A: Income statement is that financial statement that shows the different income as well as expenditures…

Q: What is the nominal return associated with an investment in capital, and why?

A: Nominal Return is the amount of money generated by an investment.

Q: thod of income approach that consider the factor

A: Introduction: When valuing a property that generates a source of income, the income technique is…

Q: How does a company determine the interest rate it uses in making a netpresent value (NPV) decision?

A: The net worth of the project after the deduction of the current worth of the cash outflows from the…

Q: What caused the increase in liquidity ratios??

A: Liquidity ratios use metrics such as the quick ratio, current ratio, and operating cash flow ratio…

Q: to

A: Why do we use the market value of debt and equity to estimate WACC instead of the book value :…

Q: 1. Using the following information detailed below, calculate the percentage of equity contribution…

A: Equity, in the financial context, signifies ownership in a company and is the residual interest in…

Q: Based on the Liquidity ratio, which ratio determine stability, earning power and capital? Explain…

A: Liquidity ratio is the ratio that helps an enterprise know its ability to pay the current debts with…