Using the Internet databases, research Facebook’s
Initial Public Offering (IPO) and subsequent financial performance. Based on
Write a five to six (5-6) page paper in which you:
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.
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.
an alternative method of valuation for the company valuation indicated
and how it may have yielded a different value and the potential resulting
impact to investor decision. Provide support for your rationale.
the role of the Chief Executive Officer in relationship to the stock
performance, suggesting what the person in that role may have done
differently to positively influence the performance of the stock and
value to investors. Provide support for your suggestions.
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.
the stock price of Facebook over the next five years, indicating the key
drivers of the performance and the resulting impact to the stock price.
Provide support for your prediction.
at least five (5) quality academic resources in this assignment. Note:
Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting
typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
a cover page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover page and
the reference page are not included in the required assignment page
The specific course learning outcomes associated with
this assignment are:
risk-assessment tools to expected rates of return and firm valuations.
valuation models and techniques using cash-flow, earnings-based, and
technology and information resources to research issues in financial
analysis and reporting.
clearly and concisely about financial analysis and reporting using proper