This finance assignment provides a comprehensive analysis of company financing and capital budgeting, focusing on real-world examples from Amazon and Apple. The assignment begins with an examination of the cash conversion cycle, comparing the performance of Amazon, Apple, and Macy's, and explaining how a negative cash conversion cycle supports investment and expansion. It then delves into financing options, including equity capital and retained earnings, and discusses the risks associated with Amazon's business model. The solution also includes bond valuation calculations and the determination of holding period return. Part B focuses on capital budgeting, including the calculation of Free Cash Flow (FCF), Net Present Value (NPV), and discounted payback period. The assignment recommends selecting projects with a positive NPV and highlights the importance of free cash flow for expansion and dividend payments. Finally, the assignment concludes with a personal reflection on the learning experience, emphasizing the enhanced ability to analyze case studies and apply financial concepts.
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