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Corporate Finance Ii Term 4, 2017 18 Case: Facebook, Inc.: The Initial Public Offering Due On September 4, 2017 at 8 Am

This document provides instructions for a case analysis assignment on Facebook's initial public offering. Students are asked to consider how Facebook makes money and its growth opportunities and uncertainties. They are to value Facebook shares using discounted cash flow and multiples approaches, and compare the two methods. They should also discuss potential investor concerns about Facebook and whether they would recommend the stock to a technology fund.

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Varsha Shirsat
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49 views1 page

Corporate Finance Ii Term 4, 2017 18 Case: Facebook, Inc.: The Initial Public Offering Due On September 4, 2017 at 8 Am

This document provides instructions for a case analysis assignment on Facebook's initial public offering. Students are asked to consider how Facebook makes money and its growth opportunities and uncertainties. They are to value Facebook shares using discounted cash flow and multiples approaches, and compare the two methods. They should also discuss potential investor concerns about Facebook and whether they would recommend the stock to a technology fund.

Uploaded by

Varsha Shirsat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CORPORATEFINANCEII

Term4,201718

Case:Facebook,Inc.:TheInitialPublicOffering

DueonSeptember4,2017at8am
Questionstobeconsideredforcaseanalysis:

1. HowdoesFacebookmakemoney?Whatarethegrowthopportunities?Whatarethe
uncertaintiesinvolved?
2. WhatistheintrinsicvalueofFacebooksharesusingthediscountedcashflow(DCF)
approach?Howsensitiveisthevaluationtochangingassumptions?Whatisthevalue
usingmultiples?Useandjustifyyourownassumptionsandmakeyourowncalculations
[Link]?(Exhibit11inthe
caseisavailableasanExcelfileonLMSCase_Facebook_Exhibit_11.xlsx.)
3. WhatconcernsapotentialinvestormayhaveaboutFacebookoritsoffering?
4. WhatisyourrecommendationtotheCXTTechnologyFund?Why?

CASEWRITEUPANDSUBMISSIONGUIDELINES:SEECOURSEOUTLINE

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