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everything you need to do is in the document. thanks for the help. Expanded version of Chapter 18, Case 7 The following is condensed financial

everything you need to do is in the document. thanks for the help.

image text in transcribed Expanded version of Chapter 18, Case 7 The following is condensed financial information for Facebook: (practice using case 7, but also contains additional ideas.) 1. Calculate return on average shareholders' equity? 2. Why are we using average shareholders' equity, rather than ending shareholders' equity? 3. Calculate the number of shares outstanding (Hint: use stock price and market cap) 5. Calculate the earnings-price ratio using the EPS number in the quote. 6. Calculate the P/E ratio. Is your P/E ratio reasonably close to the P/E ratio reported by Yahoo Finance? 7. Calculate the book value per share? 8. What is facebook's market to book ratio? 9. Extra credit (no credit awarded; just saying: you might want to do this): answer the same for Google. 10. Comment in ROE and the ratios of the two companies and how they compare. Which company is stock market more optimistic about future growth? How do you know? Net Income Income Statement All numbers in thousands 12/31/201 12/31/2015 12/31/2013 4 3,669,000 2,925,000 1,491,000 Balance Sheet All numbers in thousands 12/31/201 12/31/201 Period Ending 12/31/2013 5 4 44,218,00 36,096,00 Total Stockholder Equity 15,470,000 0 0

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