2. Show how you use Nowaks forecast assumptions to find an estimated share price of $25.10. (15 points) - What is the enterprise value? (show your work) - What is the total equity value? (Hint: Assume Debt=0 here) (show your work)

Exhibit 10: Morgan Stanley's Cash Flow Forecasts and Valuation Assumptions for Snap Inc. (\$ millions) Source: Nowak, B., et al., "Crackle or Pop? Initiate OW, \$28 PT," Snap Inc. analyst report Exhibit 5 (p. 7), Morgan Stanley Research, 3/27/17. Note 1: Adjusted EBITDA is a non-GAAP item. It excludes stock-based compensation expense (a cash expense), but includes depreciation and amortization. Note 2: Morgan Stanley Equity Research Disclosure: Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. (p. 1 of the Snap inc. analyst report, 3/27/17). Note 3: Morgan Stanley Code of Conduct: Our values inform everything we do: Putting Clients First, Leading with Exceptional Ideas, Doing the Right Thing and Giving Back. Our Code of Conduct reflects our continued commitment to performing all our business activities in accordance with these core values and in full alignment with the letter and spritit of applicable laws, regulations and our policies.... Putting Clients First requires us to place our clients' interests first and avoid conflicts between their interests and ours. Available at: https://www.morganstanley.com/about-us-governance/code-of-conduct, accessed 3/18/18