Reference no: EM131216862
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.
1. A forecast of Netflix, Inc., and Amazon.com, Inc.’s revenue, costs, and estimated cash flows into the next five years.
2. The appropriate discount rate for Netflix, Inc., and Amazon.com, Inc.’s forecasted cash flows.
3. An appropriate risk-adjusted rate of return for use in evaluating an investment in Netflix, Inc., and Amazon.com, Inc.
4. A determination of the estimated fair market value of 100% of Netflix, Inc., and Amazon.com, Inc.’s equity.
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