please help!
Alphabet Inc. (GOOGL) Nasdaqgs.Nasdaq Real Time Price Currency in USO Add to watchlis Adobe Inc. (ADBE) Nasdaq5-Nasdaqos Real Time Price Currency in USD Add to watchlist 1,649.95 +33.84 (+2.09%) 445.55 -1.55 (-0.35%) Start As of 1231PM EST. Market open As of 12:34PM EST Market open Plus O TE ofret Plusso Summary Company Outlook Chart Conversations Stai Summary Company Outlook Chart Conversations Statis Previous Close 1.616.11 1.1241 Previous Close 447.10 213.7416 Open 1,623.54 Market Cap Beta (SY Monthly) PE Ratio (TTM) 1.11 Open 451.00 Market Cap Beta (5Y Monthly PE Ratio (TTM) 0.97 Bid Bid 445.21 x 1300 31.88 56.12 ASK AR EPS (TTM) 446.02 x 1000 EPS (TIM) 7.94 1,647,04 1100 1.648.52 1100 1,623.54 1,658.24 1.008.87- 1,726.10 51.75 Jan 31, 2021 Feb 04, 2021 Days Range Days Range 445.11 456.18 Dec 08, 2020 S2 Week lang Earnings Date Forward Dividend & Yield Ex Dividend Date N/A (N/A) 52 Week Rang 255.17.536.88 Caming Date Forward Dividend & Yield Ex Dividend Date N/A (N/A) Volume 1,144,091 N/A Volume 976,204 Mar 23, 2005 Ave Volume 1,801.696 ty Target Est 1,854.70 Avg Volume 2,927,598 1y Target Est 552.03 Fair Value XX.XX Near Fair Value Overvalued Related Research Well och Mower AMPANGO Von Fair Value XXXK Rom View details Related Research Weekly Stock Recovery Continues in the Shad View more View details 6. Looking at their stock quotes below, why are Twitter and Zoom Communications problematic comps? In your answer also explain why Twitter's P/E ratio is non-existent and why Zoom's is astronomical. 1. How does our DCF formula differ from the one used in the Credit Suisse analysis? 2. Why is the Equity Value of Facebook greater than the Enterprise Value? Note that Net Debt is added to Enterprise Value to determine Equity value in both the Credit Suisse report and the spreadsheet. 3. Note that Credit Suisse and the spreadsheet both used 10.5% for a WACC (Discount Rate) here. Assuming a risk free rate of 1% and an Equity Risk Premium of 6%, using the CAPM formula from chapter 12, what would the cost of equity be? Note that Facebook has no debt. 4. Noting the above, if you were to change the WACC, what would you change it to and would this raise or lower the projected value of a share of Facebook? (You need not tell me what the new value would be, just whether it goes up or down). 5. Using a Comps analysis based on P/E Ratio, what would using comps of Alphabet (Google) and Adobe determine for a value for Facebook? Please use the below stock quotes to determine. Alphabet Inc. (GOOGL) Nasdaqgs.Nasdaq Real Time Price Currency in USO Add to watchlis Adobe Inc. (ADBE) Nasdaq5-Nasdaqos Real Time Price Currency in USD Add to watchlist 1,649.95 +33.84 (+2.09%) 445.55 -1.55 (-0.35%) Start As of 1231PM EST. Market open As of 12:34PM EST Market open Plus O TE ofret Plusso Summary Company Outlook Chart Conversations Stai Summary Company Outlook Chart Conversations Statis Previous Close 1.616.11 1.1241 Previous Close 447.10 213.7416 Open 1,623.54 Market Cap Beta (SY Monthly) PE Ratio (TTM) 1.11 Open 451.00 Market Cap Beta (5Y Monthly PE Ratio (TTM) 0.97 Bid Bid 445.21 x 1300 31.88 56.12 ASK AR EPS (TTM) 446.02 x 1000 EPS (TIM) 7.94 1,647,04 1100 1.648.52 1100 1,623.54 1,658.24 1.008.87- 1,726.10 51.75 Jan 31, 2021 Feb 04, 2021 Days Range Days Range 445.11 456.18 Dec 08, 2020 S2 Week lang Earnings Date Forward Dividend & Yield Ex Dividend Date N/A (N/A) 52 Week Rang 255.17.536.88 Caming Date Forward Dividend & Yield Ex Dividend Date N/A (N/A) Volume 1,144,091 N/A Volume 976,204 Mar 23, 2005 Ave Volume 1,801.696 ty Target Est 1,854.70 Avg Volume 2,927,598 1y Target Est 552.03 Fair Value XX.XX Near Fair Value Overvalued Related Research Well och Mower AMPANGO Von Fair Value XXXK Rom View details Related Research Weekly Stock Recovery Continues in the Shad View more View details 6. Looking at their stock quotes below, why are Twitter and Zoom Communications problematic comps? In your answer also explain why Twitter's P/E ratio is non-existent and why Zoom's is astronomical. 1. How does our DCF formula differ from the one used in the Credit Suisse analysis? 2. Why is the Equity Value of Facebook greater than the Enterprise Value? Note that Net Debt is added to Enterprise Value to determine Equity value in both the Credit Suisse report and the spreadsheet. 3. Note that Credit Suisse and the spreadsheet both used 10.5% for a WACC (Discount Rate) here. Assuming a risk free rate of 1% and an Equity Risk Premium of 6%, using the CAPM formula from chapter 12, what would the cost of equity be? Note that Facebook has no debt. 4. Noting the above, if you were to change the WACC, what would you change it to and would this raise or lower the projected value of a share of Facebook? (You need not tell me what the new value would be, just whether it goes up or down). 5. Using a Comps analysis based on P/E Ratio, what would using comps of Alphabet (Google) and Adobe determine for a value for Facebook? Please use the below stock quotes to determine
