1. How does our DCF formula differ from the one used in the Credit Suisse analysis? 2. Why is the Equity Value of Facebook greater than the Enterprise Value? Note that Net Debt is added to Enterprise Value to determine Equity value in both the Credit Suisse report and the spreadsheet. 3. Note that Credit Suisse and the spreadsheet both used 10.5% for a WACC (Discount Rate) here. Assuming a risk free rate of 1% and an Equity Risk Premium of 6%, using the CAPM formula from chapter 12, what would the cost of equity be? Note that Facebook has no debt. 4. Noting the above, if you were to change the WACC, what would you change it to and would this raise or lower the projected value of a share of Facebook? (You need not tell me what the new value would be, just whether it goes up or down). 5. Using a Comps analysis based on P/E Ratio, what would using comps of Alphabet (Google) and Adobe determine for a value for Facebook? Please use the below stock quotes to determine. Facebook, Inc. (FB) Nasdaqos. Nasdaqos Real Time Price Currency in USD Add to watchlist Advertisement 261.66 -1.45 (-0.55%) As of 12.29PM EST. Market open Start Trading >> Plus SD 76.4% of rutal CFD accounts lose money Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close 263.11 Market Cap 745.123B 1D 5D 1M 6M YTD 1y5Y Max Full screen 27200 Open 264.60 1.30 Beta (5Y Monthly) PE Ratio (TTM) Bid 261.96 x 900 29.80 26000 Ask 261.90 x 900 EPS (TTM) 8.78 Day's Range 261.33.270.47 Jan 26, 2021 Jan 31, 2021 Earnings Date Forward Dividend & Yield 263.11 26150 52 Week Range 137.10 - 304.67 N/A (N/A) Volume 13,081.432 Ex-Dividend Date N/A 10 AM 12 PM 02 PM Trade isted for at Avg Volume 23,867.229 1y Target Est 311.15 Near Fair Value Fair value XX.XX 26. Return View details Related Research Weekly Stock Analyst Report, facebook, Inc View more Chart Events Bear Momentum Pictormance Outlook Short Mid Term 2 W tong Term M. View all the patterns 1. How does our DCF formula differ from the one used in the Credit Suisse analysis? 2. Why is the Equity Value of Facebook greater than the Enterprise Value? Note that Net Debt is added to Enterprise Value to determine Equity value in both the Credit Suisse report and the spreadsheet. 3. Note that Credit Suisse and the spreadsheet both used 10.5% for a WACC (Discount Rate) here. Assuming a risk free rate of 1% and an Equity Risk Premium of 6%, using the CAPM formula from chapter 12, what would the cost of equity be? Note that Facebook has no debt. 4. Noting the above, if you were to change the WACC, what would you change it to and would this raise or lower the projected value of a share of Facebook? (You need not tell me what the new value would be, just whether it goes up or down). 5. Using a Comps analysis based on P/E Ratio, what would using comps of Alphabet (Google) and Adobe determine for a value for Facebook? Please use the below stock quotes to determine. Facebook, Inc. (FB) Nasdaqos. Nasdaqos Real Time Price Currency in USD Add to watchlist Advertisement 261.66 -1.45 (-0.55%) As of 12.29PM EST. Market open Start Trading >> Plus SD 76.4% of rutal CFD accounts lose money Summary Company Outlook Chart Conversations Statistics Historical Data Profile Financials Analysis Options Previous Close 263.11 Market Cap 745.123B 1D 5D 1M 6M YTD 1y5Y Max Full screen 27200 Open 264.60 1.30 Beta (5Y Monthly) PE Ratio (TTM) Bid 261.96 x 900 29.80 26000 Ask 261.90 x 900 EPS (TTM) 8.78 Day's Range 261.33.270.47 Jan 26, 2021 Jan 31, 2021 Earnings Date Forward Dividend & Yield 263.11 26150 52 Week Range 137.10 - 304.67 N/A (N/A) Volume 13,081.432 Ex-Dividend Date N/A 10 AM 12 PM 02 PM Trade isted for at Avg Volume 23,867.229 1y Target Est 311.15 Near Fair Value Fair value XX.XX 26. Return View details Related Research Weekly Stock Analyst Report, facebook, Inc View more Chart Events Bear Momentum Pictormance Outlook Short Mid Term 2 W tong Term M. View all the patterns