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Provide formula and calculate Free Cash Flow to Firm and Abnormal Profit for Facebook. Additional Information: Latest 10-year US government bond yield 2.91% Company 3-year

Provide formula and calculate Free Cash Flow to Firm and Abnormal Profit for Facebook. Additional Information:

Latest 10-year US government bond yield 2.91% Company 3-year monthly beta 0.59.

Industry 3-year monthly beta 1.13.

Market premium 5.08%. Marginal tax rate 21%.

a. Free Cash Flow to Firm for 2017.

b. Abnormal Profit for 2017.

APPENDIX B FACEBOOK, INC. CONSOLIDATED BAL ANCE SHEETS (In millions, except for number of shares and par value) FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) FACEBOOK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) APPENDIX B FACEBOOK, INC. CONSOLIDATED BAL ANCE SHEETS (In millions, except for number of shares and par value) FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) FACEBOOK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)

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