Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Find the NPV, IRR, MIRR, PI, and PBP for Facebook. Please show your work. Your initial investment is 10% of the total market value of

Find the NPV, IRR, MIRR, PI, and PBP for Facebook. Please show your work.

Your initial investment is 10% of the total market value of the company (hint: market cap = number of outstanding shares multiplied by the current stock price). Assume 5% constant growth rate for the next three years based on 2013 FCF, and the investment rate for the companies is 8%.

Market price (12/31/13) = $54.65

Shares Outstanding 2,547,000,000

Market Value = $139,193,550,000.00

Intital Value 10% MV= $13,919,355,000

Free Cash Flow: 2,860 (USD $ in millions)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing All In One

Authors: Eric Tyson

1st Edition

1119376629, 978-1119376620

More Books

Students also viewed these Finance questions

Question

Question 5 of 5

Answered: 1 week ago