Answered step by step
Verified Expert Solution
Question
1 Approved Answer
It is April 25, 2017 and you have built a DCF valuing Google's equity value at $675 billion. On December 12, 2016 Google announced a
It is April 25, 2017 and you have built a DCF valuing Google's equity value at $675 billion. On December 12, 2016 Google announced a 2 for 1 stock split (affecting all share classes) that took effect on March 15, 2017. As of January 26, 2017, there were 297,117,506 shares of the registrant's Class A common stock outstanding, 47,369,687 shares of the registrant's Class B common stock outstanding, and 346,933,134 shares of the registrant's Class C capital stock outstanding. In addition, Class B common stock has 10 votes per share, our Class A common stock has one vote per share, and our Class C capital stock has no voting rights. Google also reported the following activity for unvested restricted stock units (RSUs) for the year ended December 31, 2016: Including all unvested restricted stock in the diluted share count, assuming Google has no other dilutive securities and assuming that investors place no value on voting power, what is equity value per share?
Step by Step Solution
★★★★★
3.42 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started