50.1K
Verified Solution
Link Copied!


What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market return and risk-free rate from the Walmart WACC estimate. Answer to 2 decimal places in % format w/o % sign. Amazon's Bonds A Name Maturity Referece Time to Coupon Date Date Maturity Frequency 1 (Years) 2 Amazon Com 2060-06-03 6/3/2060 6/25/2020 39.97 Semi-Annually 3 Amazon Com 2057-08-22 8/22/2017 6/25/2020 37.18 Semi-Annually Amazon Com 2050-06-03 6/3/2050 6/25/2020 29.96 Semi-Annually 5. Amazon Com 2047-08-22 8/22/2047 6/25/2020 27.18 Semi-Annually 6. Amazon Com 4.95% 2044-12-05 12/5/2044 6/25/2020 24.46 Semi-Annually 7 Amazon Com 2037-08-22 8/22/2037 6/25/2020 17.17 Semi-Annually 9 Amazon Com 4.8% 2034-12-OS 12/5/2034 6/25/2020 14.45 Semi-Annually 9 Amazon Com 2030-06-03 6/3/2030 6/25/2020 9.95 Semi-Annually 10 Amazon Com 2027-08-22 8/22/2027 6/25/2020 7.16 Semi-Annually 11 Amazon Com 2027-06-03 6/3/2027 6/25/2020 6.94 Semi-Annually 2 Amazon Com 5.24 2025-12-03 12/3/2025 6/25/2020 5.44 Semi-Annually 13 Amazon Com 2025-06-03 6/3/2025 6/25/2020 4.04 Semi-Annually 14 Amazon Com 3.8% 2024-12-05 12/5/2024 6/25/2020 4.45 Sem-Arually 15 Amazon Com 2024-08-22 8/22/2024 6/25/2020 4.16 5eme annually 16. Amazon Com 2023-06-03 6/3/2023 6/25/2020 2.94 Semi-Annually 17 Amazon Com 2023-02-22 2722/2023 5/25/2020 2.66 Semi-Annually 18 Amazon Com 2.5% 2022-11-20 11/29/2022 6/25/2020 2.43 Semi- Annually 19 Amazon com 3.34 2021-12-05 12/5/2021 6/25/2020 1.45 Sern- Annually 20 Amazon Com 2020-08-21 8/21/2020 6/25/2020 0.16 Semi Annually 20 FA 12,29 AVE G Coupon Yield to Amount Amount Rate Maturity Outstanding Outstanding Market Value 2.70 2.63 2,000,000,000 $2,036,208,274.59 4.25 2.67 2,250,000,000 $3,085,716,749.92 2.50 2.50 2,500,000,000 $2,500,399,000.28 4.05 2.53 3,500,000,000 $4,537,695,197.38 4.95 2.62 1,500,000,000 $2,129,617,384.23 3.88 2.34 2,750,000,000 $3,345,974,304.34 4.80 2.00 1,250,000,000 $1,687,177,234.35 1.50 1.52 2,000,000,000 $1,995,464, 73150 3.15 1.19 3,500,000,000 $3,968,765,923.29 1.20 1.21 1,250,000,000 $1,248,965,970.26 5.20 0.91 871,747,000 $1,059,727,237.01 0.80 0.76 1,250,000,000 $1,252,168,869.26 3.80 0.75 1,250,000,000 $1,416,785,985.95 2.B0 0.66 2,000,000,000 $2,175,27,285,59 0.40 0.45 1,000,000,000 5998,528,621.74 2.40 0.30 1,000,000,000 $1,055,784.620.84 2.50 0.52 1,250,000,000 $1,309,765,452.92 3.30 0.58 1,000,000,000 $1,039,056,097.67 1.90 0.37 1,000,000,000 $1,002,384,710.16 2.55 1.10 Total $37855.403 701.28 Amazon's Beta Amazon y = 1.1634x + 1.4463 R2 = 0.3077 Amazon Monthly Returns -10 S&P 500 Monthly Returns Amazon Stock Quote AZN US 3435.81 2436.91 vol 2.807,079 02455.01 T2430. 13 Vitl7.01B TARANTULUI Report Pau 1/3 Security Doption Luity o pronta Tato Dalist OR Veda BFS AWON GUM IN 11. ISBLOCKOVIVUA 11111 El. 16 Amm; in van online mailer that ottorin wide range of products. The company proti wilde boks, Music, Videotapes, computers electronics, home and garden and numerous other products. Am. on offers personalized shopping service. Web-based cresti: card $Venent 2011 direct Shipping to customers. Price Chart | GP 9 Estimates | EE 13) Corporate Info Date 07/24/20 www.1 OTAK E' PL 110.41 Seattle, WA, I SUPE 12/20 124,94 ppis 340,100 (03/31/20) 112M EPS (USD) 20.93 19 Management | MGMT >> St S 19.50 16) Jeffrey P Hezos "icfr" Est PEG 2.14 Chairman/President CEO TO Px/09 1D (USD) 2136.88/-13 17. Andrew R Jassy "Andy** 52 Wk (OS/21/20) 252.-15 Dividend | DVD 10:Web Services 52 wk (03/16/90) 1626.03 ind Gross Yield N.A. 10 feffrey A Wilke "left" YID Change/ 589,0/31.88') CEO Worldwid constant Mkt Cop (USD) 1,215,5B No cal dividend 12M Tot Ret 33.65 S. Out/Float 498.8M/427./M Bota vs SPX 0.81 SI/' of Float 3.5M/0.83% 23 Depositary Receipts Days to Covet 0.6 Active Receipts What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market return and risk-free rate from the Walmart WACC estimate. Answer to 2 decimal places in % format w/o % sign. Amazon's Bonds A Name Maturity Referece Time to Coupon Date Date Maturity Frequency 1 (Years) 2 Amazon Com 2060-06-03 6/3/2060 6/25/2020 39.97 Semi-Annually 3 Amazon Com 2057-08-22 8/22/2017 6/25/2020 37.18 Semi-Annually Amazon Com 2050-06-03 6/3/2050 6/25/2020 29.96 Semi-Annually 5. Amazon Com 2047-08-22 8/22/2047 6/25/2020 27.18 Semi-Annually 6. Amazon Com 4.95% 2044-12-05 12/5/2044 6/25/2020 24.46 Semi-Annually 7 Amazon Com 2037-08-22 8/22/2037 6/25/2020 17.17 Semi-Annually 9 Amazon Com 4.8% 2034-12-OS 12/5/2034 6/25/2020 14.45 Semi-Annually 9 Amazon Com 2030-06-03 6/3/2030 6/25/2020 9.95 Semi-Annually 10 Amazon Com 2027-08-22 8/22/2027 6/25/2020 7.16 Semi-Annually 11 Amazon Com 2027-06-03 6/3/2027 6/25/2020 6.94 Semi-Annually 2 Amazon Com 5.24 2025-12-03 12/3/2025 6/25/2020 5.44 Semi-Annually 13 Amazon Com 2025-06-03 6/3/2025 6/25/2020 4.04 Semi-Annually 14 Amazon Com 3.8% 2024-12-05 12/5/2024 6/25/2020 4.45 Sem-Arually 15 Amazon Com 2024-08-22 8/22/2024 6/25/2020 4.16 5eme annually 16. Amazon Com 2023-06-03 6/3/2023 6/25/2020 2.94 Semi-Annually 17 Amazon Com 2023-02-22 2722/2023 5/25/2020 2.66 Semi-Annually 18 Amazon Com 2.5% 2022-11-20 11/29/2022 6/25/2020 2.43 Semi- Annually 19 Amazon com 3.34 2021-12-05 12/5/2021 6/25/2020 1.45 Sern- Annually 20 Amazon Com 2020-08-21 8/21/2020 6/25/2020 0.16 Semi Annually 20 FA 12,29 AVE G Coupon Yield to Amount Amount Rate Maturity Outstanding Outstanding Market Value 2.70 2.63 2,000,000,000 $2,036,208,274.59 4.25 2.67 2,250,000,000 $3,085,716,749.92 2.50 2.50 2,500,000,000 $2,500,399,000.28 4.05 2.53 3,500,000,000 $4,537,695,197.38 4.95 2.62 1,500,000,000 $2,129,617,384.23 3.88 2.34 2,750,000,000 $3,345,974,304.34 4.80 2.00 1,250,000,000 $1,687,177,234.35 1.50 1.52 2,000,000,000 $1,995,464, 73150 3.15 1.19 3,500,000,000 $3,968,765,923.29 1.20 1.21 1,250,000,000 $1,248,965,970.26 5.20 0.91 871,747,000 $1,059,727,237.01 0.80 0.76 1,250,000,000 $1,252,168,869.26 3.80 0.75 1,250,000,000 $1,416,785,985.95 2.B0 0.66 2,000,000,000 $2,175,27,285,59 0.40 0.45 1,000,000,000 5998,528,621.74 2.40 0.30 1,000,000,000 $1,055,784.620.84 2.50 0.52 1,250,000,000 $1,309,765,452.92 3.30 0.58 1,000,000,000 $1,039,056,097.67 1.90 0.37 1,000,000,000 $1,002,384,710.16 2.55 1.10 Total $37855.403 701.28 Amazon's Beta Amazon y = 1.1634x + 1.4463 R2 = 0.3077 Amazon Monthly Returns -10 S&P 500 Monthly Returns Amazon Stock Quote AZN US 3435.81 2436.91 vol 2.807,079 02455.01 T2430. 13 Vitl7.01B TARANTULUI Report Pau 1/3 Security Doption Luity o pronta Tato Dalist OR Veda BFS AWON GUM IN 11. ISBLOCKOVIVUA 11111 El. 16 Amm; in van online mailer that ottorin wide range of products. The company proti wilde boks, Music, Videotapes, computers electronics, home and garden and numerous other products. Am. on offers personalized shopping service. Web-based cresti: card $Venent 2011 direct Shipping to customers. Price Chart | GP 9 Estimates | EE 13) Corporate Info Date 07/24/20 www.1 OTAK E' PL 110.41 Seattle, WA, I SUPE 12/20 124,94 ppis 340,100 (03/31/20) 112M EPS (USD) 20.93 19 Management | MGMT >> St S 19.50 16) Jeffrey P Hezos "icfr" Est PEG 2.14 Chairman/President CEO TO Px/09 1D (USD) 2136.88/-13 17. Andrew R Jassy "Andy** 52 Wk (OS/21/20) 252.-15 Dividend | DVD 10:Web Services 52 wk (03/16/90) 1626.03 ind Gross Yield N.A. 10 feffrey A Wilke "left" YID Change/ 589,0/31.88') CEO Worldwid constant Mkt Cop (USD) 1,215,5B No cal dividend 12M Tot Ret 33.65 S. Out/Float 498.8M/427./M Bota vs SPX 0.81 SI/' of Float 3.5M/0.83% 23 Depositary Receipts Days to Covet 0.6 Active Receipts
Answer & Explanation
Solved by verified expert