1. Stock Valuation- a comparison of estimated values and market prices

Slim Perkins, a business journalist, is a recent hire at his firm. Since he joined the firm, he has been following Facebook Inc.(FB) initial public offering and the stock's performance....

Please fill in all blank boxes throughout the problem, and the questions (blanks and check box) right above where the income statement starts.

^^that is supposed to say: "Thus, the value of each stock is:"

Financial statements:

Balance Sheet:

Income Statement:

Statement of Stockholder's Equity:

Statement of Cash Flows:

1. Bonus assignment Stock valuation A comparison of estimated values and market Aa Aa prices Slim Perkins, a business journalist, is a recent hire at his firm. Since he joined the firm, he has been following Facebook Inc.'s (FB) initial public 421,233,615 Shares offering (IPO) and the stock's performance. His FACEBOOK task is to estimate Facebook's fair market value, also referred to as "intrinsic" value, and compare CLASS A COMMON STOCK this value with the current stock price, and recommend a buy, sell, or hold rating to investors. Slim pulls the company's consolidated Statement of Statement of Cash financial statements to collect relevant data on Balance Sheet Income Statement Stockholder s Equity the company's historical financial performance. View each tab to access the relevant financial information needed to solve the He notices that the company assumes a 45% following questions. marginal tax rate after the IPO, and mentions that the company projects that user rates and All values are given in millions of dollars. revenue growth will decline over time. Slim starts his evaluation by calculating ratios of costs and expenses to revenues, interest expense to revenues, and others that will form the set of assumptions in his analysis which will be used to calculate free cash flows. Estimated Assumptions 2011 2010 2009 Average 1. Total cost and expenses as a percentage of revenue 2. Operating current assets 3. Growth in operating current assets 4. Operating current liabilities 5. Growth in operating current liabilities 6. Depreciation and amortization as a percentage of revenues