Stock Valuation - A comparison of estimated values and market prices

Please use the information provided below to fill in the boxes and explain the answers.

1. stock valuation A comparison of estimated values and market prices Aa Aa Slim Perkins, a business journalist, is a recent hire at his firm. Since he joined the firm, he has been following Facebook Inc.'S (FB) initial public offering (IPO) and the stock's performance. His task is to estimate Facebook's fair market value also referred to as "intrinsic" value, and compare this value with the current stock price, and recommend a buy, sell, or hold rating to investors. Slim pulls the company's consolidated financial statements to collect relevant data on the company's historical financial performance. 421,233,615 Shares FACEBOOK CLASS A COMMON STOCK Statement of Cash Flows Statement of Balance Sheet Income Statement Stockholder's Equity View each tab to access the relevant financial information needed to solve the following questions. All values are given in millions of dollars. He notices that the company assumes a 45% marginal tax rate after the IPO, and mentions that th e company projects that user rates and revenue gr enue growth will dedline over time. slim starts his evaluation by calculating ratios of costs and expenses to revenues, interest expense to revenues, and others that wil form the set of assumptions in his analysis which will be used to calculate free cash flows. Estimated Assumptions 2011 2010 2009 Average 1. Total cost and expenses as a percentage of revenue 2. Operating current assets 3. Growth in operating current assets 4. Operating current liabilities 5. Growth in operating current liabilities 6. Depreciation and amortization as a poentage of revenues 7. Net fixed assets as a peroentage of revenues