Question

In: Accounting

Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock,...

Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock, indicating any miscalculations in the valuation that may have mislead potential investors and how these errors may have been minimized. Provide support for your response. Assess the performance of the stock within the first year of the public offering, indicating the drivers of the performance and the resulting impact to the company performance.

Solutions

Expert Solution

GIVEN INFORMATION:

The valuation and method used to determine the Initial Public Offering value of Facebook stock, indicating any miscalculations in the valuation that may have mislead potential investors. &  Performance of the stock within the first year of the public offering ect..,

ANSWER :

Assess the valuation and technique used to decide the Initial Public Offering estimation of Face book stock, showing any miscounts in the valuation that may have deceive potential financial specialists and how these blunders may have been limited. Offer help for your reaction.

  • Evaluate the execution of the stock inside the principal year of general society offering, showing the drivers of the execution and the subsequent effect to the organization execution.
  • Propose an elective technique for valuation for the organization valuation showed and how it might have yielded an alternate esteem and the potential coming about effect to speculator choice. Offer help for your method of reasoning.
  • Survey the part of the Chief Executive Officer in relationship to the stock execution, proposing what the individual in that part may have done another way to emphatically impact the execution of the stock and incentive to financial specialists. Offer help for your recommendations.
  • Assess the hazard/remunerate position to a financial specialist when obtaining stock amid a first sale of stock, demonstrating under what conditions you would encourage a speculator to do as such.
  • Foresee the stock cost of Face book throughout the following five years, demonstrating the key drivers of the execution and the subsequent effect to the stock cost. Offer help for your expectation.
  • Use no less than five (5) quality scholastic assets in this task. Note: Wikipedia and different Websites don't quality as scholastic assets.

Related Solutions

Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock,...
Evaluate the valuation and method used to determine the Initial Public Offering value of Facebook stock, indicating any miscalculations in the valuation that may have mislead potential investors and how these errors may have been minimized. Provide support for your response. Assess the performance of the stock within the first year of the public offering, indicating the drivers of the performance and the resulting impact to the company performanc
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business....
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business. Write a report on the financial coverage of the financial securities. Is an IPO a primary market transaction or a secondary market transaction? Post IPO, what actions did the senior management take to maximize the shareholders’ interests? Give reasons. Using book Essentials of Corporate Finance
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business....
Recently the social networking site Facebook had a successful Initial Public Offering (IPO) of its business. Write a report on the financial coverage of the financial securities. Is an IPO a primary market transaction or a secondary market transaction? Post IPO, what actions did the senior management take to maximize the shareholders’ interests? Give reasons. Please Provide Sources
Suppose that on average, there are 15 companies making their initial public offering of stock (IPO)...
Suppose that on average, there are 15 companies making their initial public offering of stock (IPO) each month. Write down the corresponding Poisson formula for a)-c), then use R to get the final answers. a) What is the probability of few than 3 IPOs in a month? b) What is the probability of at least 15 IPOs in a month? c) What is the probability of few than 30 IPOs in a two-month period?
A Direct Public Offering (DPO, Direct-Listing) is an alternative to an Initial Public Offering (IPO) in...
A Direct Public Offering (DPO, Direct-Listing) is an alternative to an Initial Public Offering (IPO) in which a company does not work with an investment bank to underwrite the issuing of stock. While forgoing the safety net of an underwriter provides a company with a quicker, less expensive way to raise capital, the opening stock price will be completely subject to market demand and potential market swings. In a DPO, instead of raising new outside capital like an IPO, a...
Peloton is preparing for an IPO. (Initial Public Offering is when a company begins selling stock...
Peloton is preparing for an IPO. (Initial Public Offering is when a company begins selling stock to the public.) The maker of video-streaming exercise is expected to select its slate of underwriters soon and on track to go public sometimes this year. Peloton is expected to seek a valuation in excess of the roughly $4 billion estimate last year after a fund-raising round led by venture-capital firm TCV. 2019 looks to be a busy year for high-profile IPOs. Uber, Lyft...
The Central Limit Theorem Stock Prices The following table lists initial public offering (IPO) stock prices...
The Central Limit Theorem Stock Prices The following table lists initial public offering (IPO) stock prices for all 1999 stocks that at least doubled in value during the first day of trading. This is historical data. $17.00 $23.00 $14.00 $16.00 $12.00 $26.00 $20.00 $22.00 $14.00 $15.00 $22.00 $18.00 $18.00 $21.00 $21.00 $19.00 $15.00 $21.00 $18.00 $17.00 $15.00 $25.00 $14.00 $30.00 $16.00 $10.00 $20.00 $12.00 $16.00 $17.44 $16.00 $14.00 $15.00 $20.00 $20.00 $16.00 $17.00 $16.00 $15.00 $15.00 $19.00 $48.00 $16.00 $18.00...
Describe the three forms underwriters contract to sell an initial public offering. Under which method does...
Describe the three forms underwriters contract to sell an initial public offering. Under which method does the underwriter face the most risk from? Why? Complete the table below and match the company with the best form of underwriting. Justify your choice. Company Name Principal Activity Issue Price Capital to be raised Form of Underwriting Coda Minerals Ltd Mineral exploration & Development 30c $6,500,000 Adore Beauty Group Limited Online Cosmetic Retailer $6.75 $269,000,000 MyDeal.com.au E-commerce $1.00 $40,000,000
Evaluate the risk / reward position to an investor when purchasing stock during an initial public...
Evaluate the risk / reward position to an investor when purchasing stock during an initial public offering, indicating under what circumstances you would advise an investor to do so.
1) The net present value method is used to evaluate capital investments. Describe this method. Be...
1) The net present value method is used to evaluate capital investments. Describe this method. Be sure to address why the time value of money is an important component. 2)Describe the payback period method of analyzing an investment. What are two drawbacks to this method? 3) What is the profitability index? Why is this better than the net present value method when you’re trying to compare investments of different sizes?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT