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Checking the answer for this problem. Is this correct? Tequire al autora premom UI 0.370 TUI raceDUOKSLOCK. aplia N Slim Thanks, Ted! This information is
Checking the answer for this problem. Is this correct?
Tequire al autora premom UI 0.370 TUI raceDUOKSLOCK. aplia N Slim Thanks, Ted! This information is really helpful. Using Google as a comparable, it would be fair to use these values to calculate FB's investors' required rate of return, which will be 16.0% [1] Brandon Hunter, Jesse Fischer, and Shafiel Karim, "What Facebook Is Really Worth," Seeking Alpha (blog), May 15, 2012, http://seekingalpha.com/article/589741-what-facebook-is-really-worth. [2] Husky Financial, "Facebook Vs. Google: What You Need To Know Post-IPO," Seeking Alpha (blog), May 17, 2012, http://seekingalpha.com/article/598731-facebook-vs-google-what-you-need-to-know-post-ipo After discussing the different aspects of the valuation, Slim puts together his FCF projections. Complete the missing elements from his projection: Revenue growth rate Revenues - Total costs and expenses Income from operations (EBIT) - Taxes Net operating profit after taxes (NOPAT) Operating current assets Operating current liabilities NOWC Change in NOWC Net fixed assets (plant property & equipment) Change in net fixed assets + Depreciation and amortization Capital expenditure Free cash flow Present value of FCF Horizon value Present value of horizon value Total firm value 2012 2013 2014 2015 2016 2017 2018 18% 18% 18% 18% 18% 5% 5% 4,379 5,1676,097 7,195 8,490 8,914 9,360 12,307 ||2,7223,212 3,7904,473 4,696 4,931 2,072 2,445 2,885 3,404 4,0174,218 4,429 932 ||1,100 1,298 1,532 1,808 1,898 1,993 1,140 1,345 1,587 1,872 2,210 2,312 2,436 5,0645,571 6,128 6,741 7,415 8,156 8,972 1,106 1,360 1,673 2,058 2,531 3,113 3,829 |3,914 ||4,211|4,4554,6834,884 5,043 5,143 254 252 244 22440479522 2,0362,4032,835 3,3463,948 4,145 14,352 3091367433510602197207 381 450531626739776814 714842994 1,173 1,384 1,4531,526 598753753922 1,124 1,1621 ,201 520 569 495 527 559 502 - - - - 10,311 3,876 - 7,049 TIT TUI According to the SEC filings, FB stock's IPO was priced at $38.00 per share. If Slim strictly follows the theoretical rules of investing, based on his analysis, what strategy would he recommend to investors interested in FB's stock as an asset in their short-term investment portfolio? The value of total long-term liabilities that FB reported in 2011 was $533 , and the value of preferred stock in 2011 was $615 Thus, using the firm's value, the derived equity value will be $5,901 The company issued shares of class A common stock in 2012. Thus, the value of each stock is Buy 0 Hold 0 Sell 0 Tequire al autora premom UI 0.370 TUI raceDUOKSLOCK. aplia N Slim Thanks, Ted! This information is really helpful. Using Google as a comparable, it would be fair to use these values to calculate FB's investors' required rate of return, which will be 16.0% [1] Brandon Hunter, Jesse Fischer, and Shafiel Karim, "What Facebook Is Really Worth," Seeking Alpha (blog), May 15, 2012, http://seekingalpha.com/article/589741-what-facebook-is-really-worth. [2] Husky Financial, "Facebook Vs. Google: What You Need To Know Post-IPO," Seeking Alpha (blog), May 17, 2012, http://seekingalpha.com/article/598731-facebook-vs-google-what-you-need-to-know-post-ipo After discussing the different aspects of the valuation, Slim puts together his FCF projections. Complete the missing elements from his projection: Revenue growth rate Revenues - Total costs and expenses Income from operations (EBIT) - Taxes Net operating profit after taxes (NOPAT) Operating current assets Operating current liabilities NOWC Change in NOWC Net fixed assets (plant property & equipment) Change in net fixed assets + Depreciation and amortization Capital expenditure Free cash flow Present value of FCF Horizon value Present value of horizon value Total firm value 2012 2013 2014 2015 2016 2017 2018 18% 18% 18% 18% 18% 5% 5% 4,379 5,1676,097 7,195 8,490 8,914 9,360 12,307 ||2,7223,212 3,7904,473 4,696 4,931 2,072 2,445 2,885 3,404 4,0174,218 4,429 932 ||1,100 1,298 1,532 1,808 1,898 1,993 1,140 1,345 1,587 1,872 2,210 2,312 2,436 5,0645,571 6,128 6,741 7,415 8,156 8,972 1,106 1,360 1,673 2,058 2,531 3,113 3,829 |3,914 ||4,211|4,4554,6834,884 5,043 5,143 254 252 244 22440479522 2,0362,4032,835 3,3463,948 4,145 14,352 3091367433510602197207 381 450531626739776814 714842994 1,173 1,384 1,4531,526 598753753922 1,124 1,1621 ,201 520 569 495 527 559 502 - - - - 10,311 3,876 - 7,049 TIT TUI According to the SEC filings, FB stock's IPO was priced at $38.00 per share. If Slim strictly follows the theoretical rules of investing, based on his analysis, what strategy would he recommend to investors interested in FB's stock as an asset in their short-term investment portfolio? The value of total long-term liabilities that FB reported in 2011 was $533 , and the value of preferred stock in 2011 was $615 Thus, using the firm's value, the derived equity value will be $5,901 The company issued shares of class A common stock in 2012. Thus, the value of each stock is Buy 0 Hold 0 Sell 0Step by Step Solution
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