Now value FB using discounted cash flow. What is your risk free rate? Risk premium? Discount rate? Growth rate? Provide a rationale for each. What is your terminal value? What is your estimated value? If the U.S. inflation rate bounces significantly higher in months ahead, the Fed will have to raise short term interest rates. Assuming the risk free rate rises by one percent, what is your new value for FB? Analysts have recently become much more negative on FB. How do negative analysts estimates affect your estimated value?

On Excel please