This report presents a comprehensive analysis of Amazon's financial performance, addressing key aspects of corporate finance. The assignment begins with an examination of Amazon's cash conversion cycle, comparing it to competitors and exploring its implications for financing and working capital management. The analysis then delves into Amazon's financing options, including equity and debt, and assesses associated risks. The report proceeds to analyze bond pricing and calculate the holding period return on Amazon's investments. Part 2 focuses on capital budgeting, evaluating the free cash flow generated by potential new stores, determining the appropriate discount rate, and calculating the payback period. The report critiques the estimation of cash flows, and concludes with an assessment of the feasibility of the proposed project. The assignment concludes with a personal reflection on the learning experience and the application of financial concepts, referencing provided sources such as Amazon's annual reports and articles on working capital management. Excel spreadsheets are used to support the calculations.
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