Year Ended December 31, 2019 2020 2018 Class A Class B Class A Class B Class A Class B $ 24,607 $ 4,539 $ 15,569 $ 2,916 $ $ 3,701 18,411 (1) 18,410 $ 24,607 $ 4,539 $ 15,569 $ 2,916 $ $ 3,701 2.407 444 2.404 450 2.406 484 $ 10.22 $ 10.22 $ 6.48 $ 6.48 $ 7.65 $ 7.65 $ 24,607 $ 4.539 $ 15,569 $ 2.916 $ 3,701 Basic EPS: Numerator Net income Less: Net income attributable to participating securities Net income attributable to common stockholders Denominator Weighted-average shares outstanding Basic EPS Diluted EPS: Numerator Net income attributable to common stockholders Reallocation of net income attributable to participating sec ities Reallocation of net income as a result of conversion of Class B to Class A common stock Reallocation of net income to Class B common stock Net income for diluted EPS Denominator Number of shares used for basic EPS computation Conversion of Class B to Class A common stock Weighted average effect of dilutive RSUs and employee stock options Number of shares used for diluted EPS computation Diluted EPS 18,410 $ 1 4,539 2,916 3,701 (58) (18) 2,898 (16) 3,685 $ 29,146 $ 4,481 $ 18,485 $ $ 22.112 $ 444 450 484 2,407 444 37 2,888 2,404 450 22 2,876 2.406 484 31 2,921 1 451 3 487 444 $ 10.09 $ 10.09 $ 6.43 $ 6.43 $ 7.57 $ 7.57 Part B (15 points) Valuation Measures Work and Solution Pretend you own FB, is this a favorable or unfavorable trend? 2020 Example: Total Debt/Total Assets 31,026/159,316 = .19 Ratio (page 82 10-K) 2019 32,322/133,376 = -24 This is a favorable trend. Market-to-Book Ratio $273.161 $208.671 (Use Class A - Number of shares used for diluted EPS computation, on page 97. Market price at year end is given.) Year Ended December 31, 2019 2020 2018 Class A Class B Class A Class B Class A Class B $ 24,607 $ 4,539 $ 15,569 $ 2,916 $ $ 3,701 18,411 (1) 18,410 $ 24,607 $ 4,539 $ 15,569 $ 2,916 $ $ 3,701 2.407 444 2.404 450 2.406 484 $ 10.22 $ 10.22 $ 6.48 $ 6.48 $ 7.65 $ 7.65 $ 24,607 $ 4.539 $ 15,569 $ 2.916 $ 3,701 Basic EPS: Numerator Net income Less: Net income attributable to participating securities Net income attributable to common stockholders Denominator Weighted-average shares outstanding Basic EPS Diluted EPS: Numerator Net income attributable to common stockholders Reallocation of net income attributable to participating sec ities Reallocation of net income as a result of conversion of Class B to Class A common stock Reallocation of net income to Class B common stock Net income for diluted EPS Denominator Number of shares used for basic EPS computation Conversion of Class B to Class A common stock Weighted average effect of dilutive RSUs and employee stock options Number of shares used for diluted EPS computation Diluted EPS 18,410 $ 1 4,539 2,916 3,701 (58) (18) 2,898 (16) 3,685 $ 29,146 $ 4,481 $ 18,485 $ $ 22.112 $ 444 450 484 2,407 444 37 2,888 2,404 450 22 2,876 2.406 484 31 2,921 1 451 3 487 444 $ 10.09 $ 10.09 $ 6.43 $ 6.43 $ 7.57 $ 7.57 Part B (15 points) Valuation Measures Work and Solution Pretend you own FB, is this a favorable or unfavorable trend? 2020 Example: Total Debt/Total Assets 31,026/159,316 = .19 Ratio (page 82 10-K) 2019 32,322/133,376 = -24 This is a favorable trend. Market-to-Book Ratio $273.161 $208.671 (Use Class A - Number of shares used for diluted EPS computation, on page 97. Market price at year end is given.)
