Forecasting revenue-costs and estimated cash flows

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Reference no: EM131216353

Assignment 1: Forecasting Revenue, Costs, and Estimated Cash Flows

Imagine that you are a financial advisor for Netflix, Inc., and Amazon.com, Inc. You are tasked with creating a comprehensive forecast of the revenue, costs, and cash flows of these companies, answering key questions that may influence their future decisions.

To prepare for this Assignment, use the Netflix and Amazon Data Spreadsheet, located in this week’s Learning Resources, to generate a pro forma forecast and consider what this indicates about the future for these two companies.

In a 1- to 2-page paper, provide the following:

A forecast of Netflix, Inc., and Amazon.com, Inc.’s revenue, costs, and estimated cash flows into the next five years.

The appropriate discount rate for Netflix, Inc., and Amazon.com, Inc.’s forecasted cash flows.

An appropriate risk-adjusted rate of return for use in evaluating an investment in Netflix, Inc., and Amazon.com, Inc.

A determination of the estimated fair market value of 100% of Netflix, Inc., and Amazon.com, Inc.’s equity.

Reference no: EM131216353

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