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Discuss the difference between NOPAT and net income and explain which one is the better measure of a company’s performance, and why?
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Calculate the Economic Value Added for Amazon.com Inc. and critically evaluate the result?
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Should Amazon.com Inc. borrow more money because of the tax benefit from interest payments? Why or why not (use actual financial data to support the analysis)?
- What are the most important things you learned from the study of this assignments?
– Reference your work using APA style.
Useful links:
http://www.accountingtools.com/questions-and-answers/what-is-nopat.html
https://www.youtube.com/watch?v=ZCaeMTSTWYs
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/invfables/eva.htm
http://thismatter.com/money/stocks/valuation/profitability-ratios.htm