Amazon Co, Inc (AMZN) has an Enterprise Value of $18.7 billion. • AMZN’s Enterprise Value to Sales ratio is 0.40 versus 1.65 for peers, while their Enterprise Value to EBITDA ratio is 6.5 versus 15.7 for peers. • How would AMZN’s Enterprise Value change if the ratios were equal to the average of its peers?

Amazon Co, Inc (AMZN) has an Enterprise Value of $18.7 billion. • AMZN’s Enterprise Value to Sales ratio is 0.40 versus 1.65 for peers, while their Enterprise Value to EBITDA ratio is 6.5 versus 15.7 for peers. • How would AMZN’s Enterprise Value change if the ratios were equal to the average of its peers?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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I don't understand the difference b/w Non Constant Growth (question 15) where the solution doesn't require the dividend to be multiplied by (1.05) and Non Constant Dividend (question 17) where the dividend is being multiplied by the 1+g)....It seems like they are similiar questions.
fast QUESTION 9 A company has a Return on Equity of 0.2, a Profit Margin of 0.12 and Total Asset Turnover of 0.48. Using this information calculate the Equity Multiplier?
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QUESTION 3 Warwickshire plc is appraising a new project in a different line of business to its core operations. It has identified a suitable company, Nottingham plc, to use as a proxy. Details are as follows: Equity beta of Nottingham 1.250 Market value of Nottingham's debt: £39m Market value of Nottingham's equity: £45m Corporation Tax rate (both companies): 30% If Warwickshire is finance by £188m of equity and £95m of debt what would a suitable proxy equity beta for Warwickshire plc to use in the appraisal process? OA. 1.053 О в. 1.182 O.0.778 OD.1.486 O E. 1.504
Fast solve plz
son.1
REQUIRED: • Vertical Analysis • Financial Ratio
Q3
None
Problem 19.17 If projected sales growth is actually 8.80%, Calculate the EFN. (Refer to Exhibits 19.10 and 19.11.) (Round answer to 2 decimal places, e.g. 0.45. Enter negative amount using either a negative sign preceding the number e.g. -0.45 or parentheses e.g. (0.45).) Exhibit 19.10 Empire Enterprises: Pro Forma Income Statement and Balance Sheet ($ millions) Income Statement Net sales $ 120.0 Costs 108.0 Net income $ 12.0 Dividends 24 $ 7.2 Additions to retained earnings $ 4.8 Balance Sheet Assets Liabilities and Stockholders' Equity Change Change Assets $ 60.0 S 10.0 Total debt $ 20.0 $0.0 4.8 Equity Total liabilities and stockholder's equity 34.8 Total assets $ 60.0 $ 10.0 $ 54.8 $ 5.2 $ 4.8 External financing needed (EFN) $ 5.2 The pro forma balance sheet for Empire Enterprises does not balance, and the difference is the amount of EFN. Because the company's board does not wish to issue common stock, the funding will have to take the form of long-term debt.
Question 20 of 20 In a segment of the Technology industry, all Target companies of recent Transactions had negative EBITDA. When calculating Comparable metrics for recent Transactions, one could: 1. Add the Companies' high revenue growth rates to their negative EBITDA margins to obtain positive EBITDA multiples 2. Calculate EV/Sales metrics 3. Calculate EV/User metrics 4. Reorder the EV/EBITDA metrics and highlight to the reader that more negative EV/EBITDA multiples denote a higher price 5. Focus on % Premium paid O2 and 3 O 1, 2, and 4 O2, 3, and 4 O 2,3, and 5
21 A company's current ratio is 2.0, and its acid-test ratio is 1.0. How will these ratios be affected if the company pays cash to purchase inventory? The acid-test ratio will decrease, but the current ratio will not change. The current ratio will decrease, but the acid-test ratio will not change. O Both the current and acid-test ratios will decrease. O Neither the current ratio nor the acid-test ratio will change.

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