Every strategy will have associated costs. Determining how to provide enough necessary capital to adequately cover the projected costs is one of the more critical steps required to keep firms competitive. For each of the following parts, use your CLC group’s Strategic-Planning Template for Amazon.
Part I: EPS / EBIT Analysis
Prepare an EPS/EBIT Analysis for Amazon by doing the following:
Refer to and follow the steps given in Chapter 8 of the David text to learn how to complete an EPS/EBIT analysis.
Use the data you have compiled about your company throughout the course to assist you.
Determine whether the firm should use all debt, all stock, or a 50-50 combination of debt and stock to finance their market-development strategy.
Use your Strategic-Planning Template to complete the EPS/EBIT tables and chart.