Question: 4. Calculate AMZN's target share price using the consensus case assumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share

4. Calculate AMZN's target share price using theconsensus caseassumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share price be if the exit multiple is 16.0x and the discount rate is 10.5%?

A. 2,717

B. 2,502

C 2,686

D 2,473

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

part 1. In the consensus case , what is the exit multiple terminal value on Dec 31, 2028? A 1,853,611 B 2,232,891 C 2,151,659 D 1,605,714 2. In the consensus case , what is Amazon's enterprise value...

https://drive.google.com/drive/u/1/shared-with-me 13 Complete Live Case section in the Scenario worksheet. There are 4 scenarios in this model: Consensus, Bull, Bear, and Other. The numbers in the...

MCQ Question 01 There are how many types of financial decision that a finance manager takes A. Financing decision, Investment Decision and Dividend Decision B. Financing decision, Segmentation and...

Complete Live Case section in the Scenario worksheet. There are 4 scenarios in this model: Consensus, Bull, Bear, and Other. The numbers in the live case should reflect one of the cases based on cell...

4.Calculate AMZN's target share price using the consensus case assumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share price be if the exit multiple is...

1. What is the exit multiple terminal value on Dec 31,2028? a) 1,605,714 b) 1,853,611 c) 2,232,891 d) 2,151,659 2. What is Amazon's enterprise value on the valuation date using the exit multiple...

In the consensus case , what is the exit multiple terminal value on Dec 31, 2028? 1,605,714 1,853,611 2,151,659 2,232,891 In the consensus case , what is Amazon's enterprise value on the valuation...

1.In theconsensus case what is the exit multiple terminal value on Dec 31, 2028? 1,605,714 1,853,611 2,232,891 2,151,659 2.In theconsensus case1,029,0711,414,3252,088,584 , what is Amazon's...

The HamilGine Piston Decision This case addresses many issues that affect insourcing/outsourcing decisions. A complex and important topic facing businesses today is whether to produce a component,...

Assignment - An Individual Assignment Use the assumptions, ratios and data provided to develop a forecast of the company financial statements for the next five 1 years (2019 to 2023) after preparing...

1. What is the monthly payment? 2. How much of the first payment is interest? 3. How much of the first payment is principal? 4. How much will Casino.com Corporation owe on this loan after making...

A rigid vessel initially contains 2 kmol of carbon and 2 kmol of oxygen at 25C, 200 kPa. Combustion occurs, and the resulting products consist of 1 kmol of carbon dioxide, 1 kmol of carbon monoxide,...

In equation form, the equity valuation cash flow is defined as: Question 1 0 Answer a . Net Income + Depreciation and Amortization Expense Change in Net Operating Working Capital + Capital...

Smith Inc. acquired all of the common stock that was outstanding of Williams Company on 1/1/15. As a result of this acquisition, there will be annual amortization in the amount of $30,000. Smith...

10. A steel cable holds a 120-kg shark tank 3 meters below the surface of saltwater. If the volume of water displaced by the shark tank is 0.1 m', what is the tension in the cable? Assume the density...

Discuss Ethical Issues in Observation?

1. Which form of diabetes has nothing to do with blood glucose levels? a. Type I Diabetes Mellitus b. Gestational diabetes c. Diabetes Insipidus d. Type 2 Diabetes Mellitus 2. Goiter is caused by...

Why do we need to calculate beginning Retained Earnings and beginning NCI when preparing consolidated financial statements using the worksheet method.

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Wind speed, part 3. Exercises 70 and 72 give summaries and displays for two potential sites for a wind turbine. Test an appropriate hypothesis to see if there is evidence that either of these sites...

Employee athletes. An ergonomics consultant is engaged by a large consumer products company to see what they can do to increase productivity. The consultant recommends an employee athlete program,...

Online insurance, part 3. Exercises 69 and 71 give summaries and displays for car insurance premiums quoted by a local agent and an online company. Test an appropriate hypothesis to see if there is...