Required:

Part A - Computations (25 marks) Compute Cash Flows for Rosetta Stone for 2009 - 2018. Please do not change the template when you input your answers in. Link to the appropriate cells to support your calculations in the Excel file.

Part B - Computations (35 marks) What do you think the current market price is for Rosetta Stone shares? Justify your valuation on a discounted-cash-flow basis and a market multiples basis. Please do not change the template when you input your answers in. Link to the appropriate cells to support your calculations in the Excel file.

Part C - Essay (35 marks) a) At what price would you recommend that Rosetta Stone shares be sold? Justify your answer. b) What are the pros and cons of using a market-multiples approach in valuation.