If the discount rate were 14%, how much should Amazon pay for the company today, at most, if it has a ten-year time horizon? Up to what price would Amazon be willing to bid if its minimum IRR were 10%? Year Free CAsh Flow EBIDTA NET Profit Net Financial Debt 2019 -25 5 807 96 2020 -81 8 1542 101 2021 32 62 1876 139 2022 36 85 919 125 2023 58 143 2355 117
If the discount rate were 14%, how much should Amazon pay for the company today, at most, if it has a ten-year time horizon? Up to what price would Amazon be willing to bid if its minimum IRR were 10%? Year Free CAsh Flow EBIDTA NET Profit Net Financial Debt 2019 -25 5 807 96 2020 -81 8 1542 101 2021 32 62 1876 139 2022 36 85 919 125 2023 58 143 2355 117
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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- If the discount rate were 14%, how much should Amazon pay for the company today, at most, if it has a ten-year time horizon?
- Up to what price would Amazon be willing to bid if its minimum IRR were 10%?
Year | Free CAsh Flow | EBIDTA | NET Profit | Net Financial Debt |
2019 | -25 | 5 | 807 | 96 |
2020 | -81 | 8 | 1542 | 101 |
2021 | 32 | 62 | 1876 | 139 |
2022 | 36 | 85 | 919 | 125 |
2023 | 58 | 143 | 2355 | 117 |
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