Analysis Of The Future Prospects Of Amazon.com Inc.
Required Rate of Return Before we dive into valuation, it is imperative that we assess a risk appropriate required rate of return, before clouding that with rate with results from the models. This analysis will use three rates of return to evaluate the value at varying levels of confidence. Our aggressive rate of 9.76%, is constructed using a simple capital asset pricing (CAPM) model where the risk free rate reflects current 10-year U.S. Treasury rates (2.27%) , 5-year regression tested beta against the S&P500 (1.2011) , and an equity risk premium (ERP) (6.63%). For a full breakdown including capital structure and cost of debt, see Exhibit A. Since Amazon is a riskier investment than many of its peers, a more conservative WACC was also calculated using the Fama-French (FFM) model to calculate a cost of equity. The model includes the…
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Marketing Analysis Of Amazon.com, Inc.
1589 Words | 7 PagesMarketing Analysis of Amazon.com Company Overview Jeff Benzo founded Amazon.com, Inc., simply known as Amazon in 1994 in Bellevue, Washington. Benzo started the company with the name of “Cadabra” on July 5, 1994 and a year later in 1995 changed the name of the company to what it is now, Amazon. The reason Benzo picked the word Amazon to name his company after was because he knew the Amazon river was special and unique just like he wanted his company to be, not only that but he knew the Amazon river…
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An E-Business Analysis of Amazon.Com, Inc.
1377 Words | 6 PagesAn E-Business Analysis of Amazon.com, Inc. BUS 352: e-Business An E-Business Analysis of Amazon.com, Inc. Very few individuals can say that they have done what Jeffry Bezos has done. Jeffrey Bezos is the founder and CEO of the world’s largest online retailer, Amazon.com, Inc. Back in 1994, when the company finally came into fruition, the idea of selling anything via the internet was something new and pretty radical. Originally started as an online bookstore, but soon developing…
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Case Analysis : Amazon.com Inc.
1368 Words | 6 PagesAmazon.Com Inc. Amazon.Com Inc. (Amazon) is the world’s largest online retailer led by their CEO, Jeff Bezos, whose focus continues to be a rapid expansion. The company is headquartered in Seattle, Washington and began as an online bookstore. Assessing risk management for the online retailer is determined by looking at the four high-level risk categories that include hazard risks, operational risks, financial risks and strategic risks. It is important for companies to understand these different…
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Business Analysis Of Amazon.com Inc.
888 Words | 4 PagesConsolidations of Financial Statements Corporate Structure Amazon.com Inc. maintains a corporate structure like any other corporation, with a board of directors, management and stockholders. The board of directors consists of 10 directors and is chaired by the company’s CEO Jeffery Bezos. Amazon’s corporate governance guidelines (2016) state the responsibility of the board of directors is to control and direct the company while maintaining accountability to the shareholders and building long-term…
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Managerial Analysis Of Amazon.com, Inc.
1769 Words | 8 Pagespaper is to provide a managerial analysis of Amazon.com, Inc. and to discuss the key reasons behind their low profitability and whether it will improve in the future. Included in the analysis of Amazon.com, Inc., will be a thorough examination of the firms Vison and Mission statements, Amazons current strategic plans and direction, a look inside at their corporate culture and organizational structure, as well as a detailed SWOT Analysis. History Amazon.com, Inc., was founded on July 4, 1994 in Bellevue…
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Financial Statement Analysis Of Amazon.com, Inc.
1377 Words | 6 PagesFinancial Statement Analysis AMAZON.COM, INC. History Incorporated in 1994 and launched in 1995 as an online bookstore, Amazon.com was founded by Jeff Bezos with a vision of creating “the everything store” (Stone, 2013) and the largest of its kind; hence, it was named after the largest river in the world (D’Onfro, 2014). In 1997, Amazon announced IPO and trading began on NASDAQ under “AMZN”. That same year, Amazon sold to its one-millionth customer copies of a Windows NT manual and The Royals…
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Marketing Analysis : Amazon.com, Inc.
3339 Words | 14 PagesAmazon.com, Inc. Introduction Amazon.com, Inc. was founded in the year 1994 by Jeffrey P. Bezos after he left his employment with D. E. Shaw & Co. (Wall Street firm) as vice-president and moved to Seattle. After reading a report about the future of the internet projecting annual web commerce growth at 2,300%, Bezos created a list of 20 products that could be marketed online. He, finally narrowed the search five most promising products including compact discs, computer hardware, computer software…
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Marketing Analysis : Amazon.com Inc.
1405 Words | 6 PagesAmazon.com Inc. Report Stephen Hesson Mrs. Robinson-Jones EH-300-01 University of Alabama – Huntsville June 23, 2015 Amazon.com, Inc.(Amazon) is an online retailer, which offers a variety of products and services through its website, they also produce and sell the Kindle e-Book reader. Amazon.com, Inc. is located at 410 Terry Avenue North, Seattle Washington 98109 5210, USA, Amazon is also located in Redlands, CA, Chattanooga, TN, Lexington, KY and numerous other locations…
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Marketing Analysis : Amazon.com, Inc.
1005 Words | 5 PagesIntroduction Amazon.com, INC. opened its online retail website in 1995, and has now become one of the largest online retailers in the world grossing over 88 billion dollars in sales in 2014 (Business Insight, 2014). With ten different online markets across the world including the United States, China, the United Kingdom, Canada, Japan, and several other countries. Amazon.com, INC. sells a variety of merchandise from electronics, apparel, books, and an assortment of other general merchandise items…
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SWOT analysis of Amazon.com Inc
2819 Words | 12 PagesSWOT analysis of Amazon.com, Inc. Brief overview of the company: Amazon.com, Inc. or www.amazon.com has a mission statement to be the most customer-centric or customer-oriented retailer on this planet, where people can browse and buy anything they want to buy online with prices as low as possible on the market. (About Amazon) They are one of the world’s most important online retailers and providers of web service. (Amazon.com Inc.) They offer a large-scale of products such as clothing…
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