Share
Explore BrainMass

Cost of capital of Amazon.com

Identify specific reasons why the cost of capital with Amazon.com may differ among the selected companies. What does this say about their past financial performances and future prospects?

How would you recommend that the firm lower its cost of capital?

Solution Preview

Amazon.com, Inc. (Amazon) is a customer-centric company that sells a range of products that it purchases from manufacturers and distributors through its retail Websites: www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and w.joyo.com. Amazon and third-party sellers offer new, used, refurbished and collectible items in categories, such as apparel, books to toys and video games, and health and personal care. To keep customers interested in Amazon, the firm offers e-mail-based services to its registered customers.

COST OF CAPITAL OF AMAZON DIFFERENT FROM ITS PEERS
The cost of capital is the required rate of return that a firm must ...

Solution Summary

This explains the computation of cost of capital with Amazon.com

$2.19