Question 1

According to the article,the takeover price for Twitter is approximately what multiple of sales?

3.0

4.0

6.0

8.0

9.4 Question 2 Using the numbers in the article about how much more is Musk paying per share for Twitter than if the valuation was more in line with Meta and Snap?

$2

$20

$24

$30

$32 Question 3 Assuming Mr. Musk used the capital budgeting criteria covered in Module 5, how would the Twitter purchase be evaluated? (Select all that apply)

Determine an appropriate required rate of return

Estimate Twitter's future cash flows while accounting for any changes made by Musk

Estimate the present value of the future cash flows

Make an offer to purchase Twitter at a price that is less than the present value of future cash flows

Purchase if the breakeven is less than 5 years

Elon Musk Is Overpaying for Twitter-by a Huge Amount. Here's the Math. By Connor Smith Follow Updated October 7, 2022 / Original October 4, 2022 Elon Musk plans to buy Twitter for $44 billion, the original price he agreed to back in April. The world's richest man is likely wishing he waited a few months to sign the contract. When Musk, the co-founder and CEO of Tesla (ticker: TSLA), proposed buying Twitter (TWTR) for that $54.20 price, some observers wondered if Twitter would even accept the offer. Twitter stock traded at $39 on April 1, the Friday before Musk disclosed a stake in the social-media firm, but shares had traded as high as $68 in October 2021