create graph that shows how would $1000 invested in either S&P 500 or AMZN grow
ID: 2728606 • Letter: C
Question
create graph that shows how would $1000 invested in either S&P 500 or AMZN grow over time
I only need the answer for PART 3 with the fourmlas in order to type it there
AMAZON.COM, INC. Income Statement Data All numbers in $ millions except EPS Fiscal Year (December, 31) 2015 2014 2013 2012 2011 2010 2009 Sales 107006 88988 74452 61093 48077 34204 24509 Cost of Goods Sold 66751 59152 51681 44271 36288 26009 18594 Selling, General and Administrative Expense 32951 25925 19412 14287 9773 6131 4300 Operating Income Before Depreciation 7304 3911 3359 2535 2016 2064 1615 Depreciation ? ? ? ? ? ? ? Operating Income After Depreciation 2176 130 691 672 867 1407 1183 Interest Expense - Total 459 210 141 92 65 39 34 Nonoperating Income (Expense) -171 6 -115 -191 120 136 57 Other Income (Expense) 0 0 0 0 0 0 -51 Pretax Income 1546 -74 435 389 922 1504 1155 Income Taxes - Total 950 167 161 428 291 352 253 Net Income 596 -241 274 -39 631 1152 902 Earnings Per Share (Diluted) 1.25 -0.52 0.59 -0.09 1.37 2.53 2.04 Earnings Per Share (Basic) 1.28 -0.52 0.6 -0.09 1.39 2.58 2.08 Supplemental Information All numbers in $ millions except stock prices Total Assets 65444 54505 40159 32555 25278 18797 13813 Capital Expenditures 4589 4893 3444 3785 1811 979 373 R&D 12540 9275 6565 4564 2909 1734 1240 Stock price AMZN 675.89 310.35 398.79 250.87 173.1 180 134.52 S&P 500 2043.94 2058.9 1848.36 1426.19 1257.6 1257.64 1115.1 P/E ? ? ? ? ? ? ? Tasks: 1. Copy the above data into a new worksheet. Make the data presentable. --adjust font to times new roman 12 --bold co. name and increase font, center across selection --change number format --add borders --try format painter --calculate P/E when it makes sense (IF function) 2. Perform simple profitability and growth analysis (new worksheet) --transfer sales, operating profits, net income, capital expenditure, R&D, and total assets into a new worksheet (select non-adjacent ranges using mouse and CTRL and copy-paste) --calculate net profit margin and operating profit margins (practice anchoring/dollarizing cells in a formula before copying and pasting -- use F4) --are the margines improving or deteriorating over time? --create sparkline graphs for accounting data and for margins --calculate annual growth rates for sales, assets, capital expenditues, and R&D --calculate arithmetic and geometric averages of the growth rates using simple formulas array formulas --highlight number inputs and change font color of the inputs to blue (F5 go to special constants numbers) --create column graphs and sparklines 3. compare AMZN stock performance to S&P 500 on a line graph or a scatter (new worksheet) --calculate geometric average stock return --calculate arithmetic average stock return --how does Amazon stock return compare to S&P 500?create graph that shows how would $1000 invested in either S&P 500 or AMZN grow over time
I only need the answer for PART 3 with the fourmlas in order to type it there
Explanation / Answer
a. The geomtrice average of the stock return is calculted as follows:
Return from 2009 to 2010 = R1 = (180-134.52)/134.52 = 33.81% = 0.3381
Return from 2010 to 2011 = R2 = (173.1-180)/180 = -3.83% = -0.0383
Return from 2011 to 2012 = R3 = (250.87-173.1)/173.1 = 0.4493
Return from 2012 to 2013 = R4 = (398.79-250.87)/250.87 = 0.5896
Return from 2013 to 2014 = R5 = (310.35-398.79)/398.79 = -0.2218
Return from 2014 to 2015 = R6 = (675.89-310.35)/310.35 = 117.78% = 1.1778
Geometric average =((1 +R1)*(1+R2)*(1+R3)*(1+R4)*(1+R5)*(1+R6))^(1/6)-1
Geometric average return of the stock= (1.3381*0.9617*1.4493 *1.5896*0.7782*2.1778)^(1/6) -1 = 0.3087 = 30.87%
2. Arthematic average return of he stock = (0.3381 -0.0383 + 0.4493 + 0.5896 -0.2218+1.1778)/6 = 0.3825 = 38.25%
3. The return of S& P over the 7 year period is =( 2043.94-1115.1)/1115.1 = 0.8330 = 83.30%
The return of Amazon stock over the same period = (675.89-134.52)/134.52 = 4.0245 = 402.45%
The amazon stock beats the S&P index by 319.25% (492.45-83-30)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.