Facebook, Inc is the company

1. Complete a 3-5 year forecast for your target company assuming a 10% average growth rate for the duration of the forecast period

• Assuming a long-term growth rate of 5%
• Assume the appropriate discount rate for your target company is 12%

2.Explain the impact of using a discount rate of 15% (instead of 12%) for your valuation model. How would the higher discount rate affect your valuation model?