Corporate Finance

Read Chapter 1 

Read the following article and answer the question below.

https://www.cnbc.com/2022/01/03/apple-becomes-first-us-company-to-reach-3-trillion-market-cap.html

Apple just hit $3 trillion in market cap, a value that is much greater than Amazon’s market cap.  However, Apple’s share price is substantially less than Amazon’s share price. 

A) Based on your readings from the textbook, explain why this difference exists.  

B) Why do you believe investors are willing to pay more to invest in Amazon when it is worth less than Apple? 

C) If FSU gave you $10,000 to invest in one of these companies, which company would you rather invest in and why? You have to invest it all and you have to pick one.

Discussion Instructions:

Discussion posts should be answered with Fundamental Financial merits along with your experiences and opinions.  Please share your experiences and opinions-we will all benefit if you do!  Thank you.   

The primary thread must have a minimum of 200 words. Your Secondary posts must have a minimum of 100 words.

Please put your name into the subject line. 

Provide References.