Please mention the brief synopsis of 1 Page and answer those 6 questions as mentioned in the attachment. Every information is given in the attachment please read it carefully.
Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Alternative Assessment, Semester 2, 2020 Final Assessment (Take Home Case Study) 40 marks Read attached Case Study (23 pages) and answer the questions mentioned in the next page. While submitting your response, you should adhere to the instructions given below: 1. This is a take-home Case Study with a research component. You will need to complete and submit it individually. 2. This assessment weighs 40% of your overall grade. 3. The submission deadline is 06 November 2020 11:59 pm AEST (Melbourne time). 4. Only one submission per student. Do not submit multiple copies of the assessment. 5. Your submission needs to be type-written in MS Word (or pdf) with approximately 3,000 words, including a cover page, references, appendix, etc. 6. Please make sure that you provide a brief synopsis (about 1 page) of the Case at the beginning. 7. Please upload your response on Canvas unit site through Turnitin Submission Tool under Assignments / Alternative Assessment- Submission. 8. You must keep a softcopy of your response for future reference. Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Alternative Assessment, Semester 2, 2020 Page 2 of 2 Question 1: What was Amazon’s original business model? 4 marks Question 2: How has Amazon changed this model? How does this model add value for customers? How sustainable is this model? 4 + 2 + 2 = 8 marks Question 3: What are the key risks associated with Amazon’s current business strategy? 4 marks Question 4: What would you look at as early warning signs for these risks? 4 marks Question 5: Conduct a research on Amazon's performance in recent years (about 3 years from 2016 or 2017). What is your assessment of Amazon's future, including the COVID-19 pandemic? 6 marks Brief synopsis of the Case (about 1 page) carries 4 marks. Question 6: Suppose, Amazon has free cash flow to firm (FCFF) of $700 million and free cash flow to equity (FCFE) of $620 million. Amazon’s before-tax cost of debt is 5.7 percent and its required rate of return for equity is 11.8 percent. The company expects a target capital structure consisting of 20 percent debt financing and 80 percent equity financing. The tax rate is 33.33 percent, and FCFF is expected to grow forever at 5.0 percent. Amazon has debt outstanding with a market value of $2.2 billion and has 200 million outstanding common shares. i) What is Amazon’s weighted average cost of capital? ii) What is the total value of Amazon’s equity using the FCFF valuation approach? iii) What is the value per share using this approach? 3 + 5 + 2 = 10 marks Total marks: 4 + 8 + 4 + 4 + 6 + 4 + 10 = 40. (This is 40% of overall grade). Note: You will need to justify your answer/position while answering these questions. Proper referencing is required. [This Case Study has been adopted from Palepu, K. G., Healy, P. M., Wright, S., Bradbury, M. and Lee, P. (2015), Business Analysis and Valuation: Using Financial Statements - Text and Cases, Asia Pacific Edition, 2nd Edition, Cengage Learning Australia.] Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 3 of 28 Page 1 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 4 of 28Page 2 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 5 of 28Page 3 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 6 of 28 Page 4 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 7 of 28 Page 5 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 8 of 28 Page 6 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 9 of 28 Page 7 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 10 of 28 Page 8 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 11 of 28 Page 9 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 12 of 28 Page 10 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 13 of 28 Page 11 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 14 of 28 Page 12 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 15 of 28 Page 13 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 16 of 28 Page 14 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 17 of 28 Page 15 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 18 of 28 Page 16 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 19 of 28 Page 17 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 20 of 28 Page 18 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 21 of 28 Page 19 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 22 of 28 Page 20 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 23 of 28 Page 21 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 24 of 28 Page 22 Swinburne University of Technology FIN80002 Faculty of Business & Law Business and Entity Valuations Final Exam, Semester 1, 2017 Page 25 of 28 Page 23 1. Alternative Assessment_Case Study Part A 2. Alternative Assessment_Case Study Part B