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**Part II Prompt**

You will be
doing an analazis of **Amazon** and **E-Bay**. You will be
responsible for collecting, synthesizing, and making decisions regarding both
companies. After evaluating these companies’ financial data, you will then
decide which company’s stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for Walmart and E-Bay. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citation—for example, “rate of return is 3.570 USD (E64, WB2),” where E64 is the cell that the calculation took place in and WB2 is designating “workbook 2.” This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Your submission must address the following **critical elements**:

**Preparing**the Workbooks

**Download**the annual income statements, balance sheets, and cash flow statements for the last three completed fiscal years for Amazon and E-Bay. This information must be included in your final submission.

B. Prepare a **worksheet** for each of the
companies to display their financial data for the last three fiscal years.
Ensure your data is accurate and organized. Include these worksheets as a
workbook in your final submission.

C. Find historical **stock prices** for both
companies and add this information to the respective spreadsheets. Consider the
appropriate date range you should use.

- Three-Year
**Returns**

- What is the three-year return on the stock price of the
**Amazon (Company A)**? How is the stock performing? Ensure that you use the appropriate formula in your spreadsheets to calculate the three-year return on the given company’s stock price.

B. What is the three-year return on the stock
price of the **E-Bay (Company B)**? How is this stock performing? Ensure
that you use the appropriate formula in your spreadsheets to calculate the
three-year return on your chosen company’s stock price.

C. How do these two stocks **compare** in
terms of three-year returns? What does this indicate about these two companies?

- Financial
**Calculations**

- Using the appropriate spreadsheets, which are to be included in the
workbooks, calculate the
**price-to-earnings ratio**for the last three fiscal years of the given and Amazon and E-Bay. Be sure that you are entering and using the correct formula.

B. Using the appropriate spreadsheets, which
are to be included in the workbooks, calculate the **debt-to-equity ratios**
for the last three fiscal years of the given and Amazon and E-Bay. Be sure that
you are entering and using the correct formula.

C. Using the appropriate spreadsheets, which
are to be included in the workbooks, calculate the **return-on-equity ratios**
for the last three fiscal years of the given and Amazon and E-Bay. Be sure that
you are entering and using the correct formula.

D. Using the appropriate spreadsheets, which
are to be included in the workbooks, calculate the **earnings per share**
for the last three fiscal years of the given and Amazon and E-Bay. Be sure that
you are entering and using the correct formula.

E. Using the appropriate spreadsheets, which
are to be included in the workbooks, calculate the **profit margins** for
the last three fiscal years of the given and Amazon and E-Bay. Be sure that you
are entering and using the correct formula.

F. Using the appropriate spreadsheets, which
are to be included in the workbooks, calculate the **free cash flows** for
the last three fiscal years of the given and Amazon and E-Bay. Be sure that you
are entering and using the correct formula.

IV. **Industry Averages**

- Obtain current
**industry averages**of three of the financial calculations above for both companies and add this information to your spreadsheet for comparison. Ensure the accuracy and organization of your data.

B. In this context, how is each company’s **financial
health**? How do Amazon and E-Bay compare to one another? Consider the
appropriate date range you should use.

**Performance**Over Time

- Analyze the
performance of the
**Amazon**(**Company A)**over time. What financial strengths and weaknesses does this company have? Consider addressing the free cash flows and ratios you calculated earlier.

B. Analyze the performance of your **E-Bay **(**Company
B)** over time. What financial strengths and weaknesses does this company
have? Consider addressing the free cash flows and ratios you calculated
earlier.

C. Analyze how the data **differ** between
Amazon and E-Bay. Why do you think this is? Consider addressing the free cash
flows and ratios you calculated earlier.

VI. **Investment**

- Are Amazon and
E-Bay considered
**growth or value**companies? Why? - Which company’s
**stock**is the better investment? Consider supporting your answer with data.

**Guidelines for Submission**: This part of the
final project will be submitted in two parts. Part A will contain the workbooks
that house all of your quantitative data andformulas, along with any of
the information that is relevant for your chosen company. Part B will contain
your answers to the prompts, composed in a cohesive manner. Part B should use
double spacing, 12-point Times New Roman font, and one-inch margins. Citations
should be formatted according to APA style.

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