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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)
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