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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (4129)	5/10/1998 2:48:00 AM
From: Jan Crawley	Read Replies (2) \| Respond to of 164684

$326,000,000 starting face value of loan (it increases each 1/2 year) -$312,000,000 cash on hand =$ 14,000,000 net debt Interest on $14,000,000 net debt is about $350,000 per quarter, about the same as 1Q98, or 1 cent/share. Gary, Ty very much for your excellent posts re Amzn's interest payments analysis; based on our discussions, the followings are some adjustments and calculations: The loan amount - $326MM at 10% interst rate = $32MM interest expense annually; approx. $8MM interest expense per quarter. $8MM divided by Approx 24M outstanding number of shares = 30 cents per share per quarter; and $1.20 per share for the first year. Amzn's cash on hand of $312 MM, which is financed by the debt for the on-going operations should generate an average of less than 5% return on a declining base amount (cash in the bank at 3%; s-t to mid-term instruments at 5%). Approx 13 cents of interest income for the first quarter(50 cents for the first year) maybe expected to offset some of the interest expenses.