Date AMZN S&P 500 Returns (AMZN) Returns (S&P500)

### 72.5445 2,823.81

### 75.6225 2,713.83 4.24% -3.89% Part 1:
### 72.3670 2,640.87 -4.30% -2.69%
### 78.3065 2,648.05 8.21% 0.27% Beta:
### 81.4810 2,705.27 4.05% 2.16%
### 84.9900 2,718.37 4.31% 0.48%
### 88.8720 2,816.29 4.57% 3.60% Part 2:
### 100.6355 2,901.52 13.24% 3.03%
### 100.1500 2,913.98 -0.48% 0.43%
### 79.9005 2,711.74 -20.22% -6.94%
### 84.5085 2,760.17 5.77% 1.79% CAPM
### 75.0985 2,506.85 -11.13% -9.18%
### 85.9365 2,704.10 14.43% 7.87%
### 81.9915 2,784.49 -4.59% 2.97% Part 3:
### 89.0375 2,834.40 8.59% 1.79%
### 96.3260 2,945.83 8.19% 3.93%
### 88.7535 2,752.06 -7.86% -6.58%
### 94.6815 2,941.76 6.68% 6.89%
### 93.3390 2,980.38 -1.42% 1.31%
### 88.8145 2,926.46 -4.85% -1.81%
### 86.7955 2,976.74 -2.27% 1.72%
### 88.8330 3,037.56 2.35% 2.04% AMZN Stock is "Ov
### 90.0400 3,140.98 1.36% 3.40% (As the current stock price of $88.25
### 92.3920 3,230.78 2.61% 2.86% computed fair value of
### 100.4360 3,225.52 8.71% -0.16%
### 94.1875 2,954.22 -6.22% -8.41%
### 97.4860 2,584.59 3.50% -12.51% code:
### 123.7000 2,912.43 26.89% 12.68%
### 122.1185 3,044.31 -1.28% 4.53%
### 137.9410 3,100.29 12.96% 1.84%
### 158.2340 3,271.12 14.71% 5.51%
### 172.5480 3,500.31 9.05% 7.01%
### 157.4365 3,363.00 -8.76% -3.92%
### 151.8075 3,269.96 -3.58% -2.77%
### 158.4020 3,621.63 4.34% 10.75%
### 162.8465 3,756.07 2.81% 3.71%
### 160.3100 3,714.24 -1.56% -1.11%
### 154.6465 3,811.15 -3.53% 2.61%
### 154.7040 3,972.89 0.04% 4.24%
### 173.3710 4,181.17 12.07% 5.24%
### 161.1535 4,204.11 -7.05% 0.55%
### 172.0080 4,297.50 6.74% 2.22%
### 166.3795 4,395.26 -3.27% 2.27%
### 173.5395 4,522.68 4.30% 2.90%
### 164.2520 4,307.54 -5.35% -4.76%
### 168.6215 4,605.38 2.66% 6.91%
### 175.3535 4,567.00 3.99% -0.83%
### 166.7170 4,766.18 -4.93% 4.36%
### 149.5735 4,515.55 -10.28% -5.26%
### 153.5630 4,373.94 2.67% -3.14%
### 162.9975 4,530.41 6.14% 3.58%
### 124.2815 4,131.93 -23.75% -8.80%
### 120.2095 4,132.15 -3.28% 0.01%
### 106.2100 3,785.38 -11.65% -8.39%
### 134.9500 4,130.29 27.06% 9.11%
### 126.7700 3,955.00 -6.06% -4.24%
### 113.0000 3,585.62 -10.86% -9.34%
### 102.4400 3,871.98 -9.35% 7.99%
### 96.5400 4,080.11 -5.76% 5.38%
### 91.0100 3,998.84 -5.73% -1.99%
 Using "SLOPE" function Using Beta formula

1.15 1.15

Given information:
Risk free rate (Rf) 4.39%
Market Risk Premium (MRP) 6.75%

Amzn's Cost of equity (Ke) 12.16%

Given information:

Dividend paid (D0) $0.75

Growth rate (g) 10%
Current Stock price $88.25

Intrinsic or fair value of Stock (P0) $38.27

AMZN Stock is "Over-valued"

(As the current stock price of $88.25 is significantly more than the
computed fair value of stock of $38.27)

48435725
 Part 4:

Given information:
Par Value (FV) $1,000
Current Bond Price (PV) -$1,025.76
Coupon rate (CR) 4.3%
Semi-Annual Coupon payment (PMT) $21.50
Number of semi annual period (N) 14

Yield to maturity or YTM (i) 3.88%

Part 5:

Given information:
Par Value (FV) $1,000
Annual Yield to maturity or YTM 4.88%
Semi-annual Yield to maturity or YTM (i) 2.44%
Coupon rate (CR) 4.3%
Semi-Annual Coupon payment (PMT) $21.50
Number of semi annual period (N) 14

New Bond Price (PV) $965.96

 (Notes)

<<negative sign indicates cash outflow

PMT = (CR/2)*FV
(Semi annual means twice or 2 times)

"RATE" function multiplied by "2" to get annual rate"

(Notes)

"Semi annual YTM is annual YTM divided in half"

PMT = (CR/2)*FV
(Semi annual means twice or 2 times)

Bond price "Using PV function"