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The following questions relate to the Harvad case Study named, Roku, Inc : Initial Public Offering What were the advantages and disadvantages of Roku going

The following questions relate to the Harvad case Study named, Roku, Inc : Initial Public Offering

  1. What were the advantages and disadvantages of Roku going public? What were the advantages and disadvantages of going public at the time it chose?
  2. What were the major benefits and challenges to Roku from its planned shift to a platform-based revenue model? How would you describe an upside and downside scenario?
  3. What is your best estimate of the market price per share when Roku goes public? Justify your recommendation based on current market-multiple valuations and discounted cash flow (DCF) valuations. Consider DCF analyses using terminal values based on both market multiples and an assumed long term growth rate. In the DCF valuation, you will have to determine an appropriate discount rate based on the weighted average cost of capital (WACC) of comparable companies. Do you expect any specific price changes over the first few months of trading?
  4. Would you recommend that Portland Capital Management take a substantial position in the Roku offering assuming a $14 offering price?

Please complete these questions in excel with formulas shown, thank you & I will thumbs up!

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