Harvard University  FIN 090 Assessment Review - Corporate Finance Institute Advanced Financial Modeling & Valuation (Amazon Case)

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Advanced Financial Modeling & Valuation (Amazon Case) 1 In the cash Óow statement, cash and cash equivalents end of period 2017 is NOT equal to: 2 If a company has capital leases, as a Ònancial ... analyst, how would you treat it? 3 Where can you Ònd a company's stock-based compensation? 4 Which of the following do you NOT include when calculating the closing balance of PP&E? 5 Calculate a company's e-Commerce market share in their country based on the following hypothetic information: First party sales 10 million Third party selling commission 5 million Third party commission charge 20% 6 Assuming the company will have the same inventory days in 2018 and 2019. What is the forecasted inventory in 2019 based on the information below? 2018 Revenue 6,500 2019 Revenue 7,600 2018 Cost of sales 3,800 2019 Cost of sales 4,100 2018 Inventory 1,500 7 Why is accounts payable projected using an assumption based on cost of sales? Select the best answer. 8 Which of the following formula is used to calculate Free Cash Flow to Firm (FCFF)? 9 What is the mean 2019E EV/Revenue multiple in the Online Direct Sales comps group in 2019? Comps Analysis - Solution.xlsx 10 What is Company Co.'s enterprise value in the Service Package segment based on 2019E total revenue and 2019E mean EV/Revenue multiple? 11 What is Company Co.'s total enterprise value calculated based on 2019E revenue and 2019E mean EV/Revenue multiple? 12 What is Company Co.'s target price calculated based on 2019E revenue and 2019E mean EV/Revenue 13 Complete Live Case section in the Scenario worksheet. There are 4 scenarios in this model: Consensus, Bull, Bear, and Other. The numbers in the live case should reÓect one of the cases based on cell K14, which is dynamically linked to the scenario selected in the dropdown menu at the top of the worksheet. What formula will you use to Òll cell G21 (online stores for 2018E)? Advanced Modeling –Scenarios and FCF - Solutions 14 Link the live case with the Historical Analysis section in the Financial Model worksheet and complete the Valuation section. In the consensus case, what is the EBITDA excluding stock-based compensation (SBC) in 2024? Scenarios and Free Cash Flow 15 In the bull case, what is the free cash Óow to the Òrm (FCFF) if all cash CAPEX in 2027? 16 In the consensus case, what is the exit multiple terminal value on Dec 31, 2028? Advanced Modeling – DCFAnalysis - Solutions DCF Analysis 17 In the consensus case, what is Amazon's enterprise value on the valuation date using the exit multiple terminal value? 18 What is the expected AMZN value per share in 2028 in the bear case using the exit multiple terminal valuation method? 19 Calculate AMZN's target share price using the consensus case assumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share price be if the exit multiple is 16.0x and the discount rate is 10.5%? 20 What will the internal rate of return (IRR) be if the exit multiple is 10.0x and the purchase price per share is $1,700 in the bull case (given that the terminal value is calculated using the exit multiple method)? [Show More]

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