1) A Morgan Stanley Analyst produced the financial forecasts provided in the Snap Supplemental Workbook shortly after the offering. The analyst assumed a WACC of 9.7% and 1404 shares outstanding. Under these assumptions what would be the discounted cash flow estimate of Snap stocks fair market value on a per share basis?

a) How sensitive is the estimate of Snaps stock price to assumptions about growth and WACC?

b) Do the assumptions and forecasts appear reasonable? What data would you use to assess that?

c) Analyze Snaps DCF value under alternative assumptions of WACC and growth rates.

1) What important changes would you make to the forecasts provided in the Snap Supplemental Workbook if any?

2) What WACC would you recommend? Assume a long term government bond rate of 3.16%?

3) How would you deal with the uncertainty regarding Snaps future growth.