FIN 571 University of Phoenix Wk 6 Amazon Inc Financial Plan


Write about the same Fortune 500 company from weeks two and four.
Describe the organization, including the type of business.
Create the business case.

Determine why funding is needed for the company.
Determine the sources of funding. Consider self-funding, borrowing, loans, equity, venture capital, etc.
Evaluate the requirements of each of the funding sources that you plan to use.
Analyze the risks that are associated with each funding source.
Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.
Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Create a table or chart to display this information.

Estimate direct costs, including the capital, marketing, labor, equipment, and inventory/supply costs for 2023, 2024, and 2025. The estimated costs are the costs for the profit-and-loss.
Prepare a budget that includes starting balances, monthly costs, loan/investment payments, cash flow projections, and required revenue. The budget is year one of the profit-and-loss, which is 2023.
Create a profit-and-loss statement for a 3-year period. The three-year period is 2023, 2024, and 2025. Provide a revenue forecast, stating realistic assumptions, such as growth per year, in your projections.

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Week 2 Assignment Investor Presentation 1
Assignment Outline
Eugene Johnson
FIN 571
University of Phoenix
James Traylor
June 6, 2022
Week 2 Assignment Investor Presentation 2
Learning Goals:

Conduct investor analysis for Fortune 500 company

Prepare presentation including various performance indicators as asked in the question.
The following information is included in the presentation as required in the question:

The company and its ticker symbol

Cash flow from operations

Price-to-earnings ratio

Stock dividends and the yield

Earnings per share ratio

Revenue estimates for the next 12 months

Revenue from the previous 3 years

Statement of cash flows and identify net cash from operating, investing, and financing
activities over the past 3 years

Average trade volume.

Current stock price, 52-week high, and 1-year estimated stock price

(buy, sell or hold)

Market cap for the company
Investor Presentation
Eugene Johnson
FIN 571
University of Phoenix
James Traylor
May 30, 2022
Company & Ticker Symbol
• Selected Fortune 500 company is Amazon Inc.
• The company is an American multinational technology company.
• It is a retail company.
• Involved in the sale of products such as groceries, beauty products e.t.c
• Largest in the online market; available in various countries.
• Ticker symbol: AMZN
Cash flow from operations
• From cash flow statement of for the year ended December 2021:
• Net cash flow from operating activities = $46,327 million
• The cash flow decreased from 2020 where it was $66,064 million.
• Large proportion of the cash flows come from amortization of property and
• The company has been having positive cash flows from operations.
Price to earnings ratio
• P/E Ratio= share price/EPS
• Share price=$122.35
• EPS=$64.81
• P/E Ratio = 122.35/64.81 = 1.89
• The company’s stock price is high but the P/E ratio is low.
• The company has a high EPS.
Stock dividends and the yield
• Amazon has never paid dividends to his stockholders.
• This could be a turn off for investors since they seek constant returns
(Martin et al., 2020).
• Amazon’s earnings are under pressure from increasing costs of the company.
• The costs may keep increasing in the coming years.
• This means that the company may not pay dividends in the near future.
Earnings Per share Ratio
• Current EPS is $64.81
• EPS is monetary value of earnings divided by outstanding shares.
• The EPS of the company is not desirable.
• Companies that have EPS of higher than $80 do better.
• Amazon can improve EPS through lowering costs.
Revenue estimates for the next 12 months
Jul-22 Aug-22
Revenues (in millions of dollars)
Sep-22 Oct-22 Nov-22 Dec-22
Feb-23 Mar-23 Apr-23 May-23
41820 42656.4 43509.53 44379.72 45267.31 46172.66 47096.11 48038.03 48998.8 49978.77
Revenues for the last three years
Revenue in millions of dollars
Net cash from operating, investing, and
financing activities over the past 3 years
Operating net cash
(millions $)
Investing net cash
(millions $)
Financing net cash
(millions $)
Average trade volume.
• This is the average number of shares traded within a day for a specific stock (Martin
et al., 2020).
• The Average trade volume for Amazon is $4.33 million.
• This shows that the company’s stock is trading so much (Hasanaj & Kuqi, 2019).
• The higher the average trade volume the higher the number of investors purchasing
• The trade volume is expected to rise as the value of the stock increases.
Current stock price, 52-week high, and 1-year
estimated stock price
• Current stock price is=$122.35
• 52 week high is $3,773.08
• 1 year estimated stock price= $4,192.97
• The company’s stock price is expected to go up.
• Increase in stock price will attract more investors.
buy, sell or hold?
• Analysts recommend that investors should buy Amazon’s stock.
• Growth of the company has been declining.
• However the company’s future prospects are promising (Hasanaj & Kuqi,
• The company is expected to be doing well in the coming years in terms of
• Investors should buy the stock at current low prices.
Market cap
• As of 2022 the company’s market cap is $1.244 trillion
• This is the total value of all the shares of the company.
• The market cap is higher compared to most companies in the retail industry.
• The market cap of the company makes it a desirable company to invest in
(Hasanaj & Kuqi, 2019).
• To an investor market cap is value of the company; the higher the better.
• Amazon COM Inc 2021 annual report 10-K. (n.d.). Retrieved June 6, 2022, from
• Hasanaj, P., & Kuqi, B. (2019). Analysis of financial statements. Humanities
and Social Science Research, 2(2), p17-p17.
• Martin, J. D., Keown, A. J., & Titman, S. (2020). Financial management: principles
and applications. Prentice Hall.

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