Apply risk-assessment tools to expected rates of return

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Reference no: EM13891171

Using the Internet databases, research Facebook's Initial Public Offering (IPO) and subsequent financial performance. Based on your research:

Write a five to six (5-6) page paper in which you:

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.

Suggest 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.

Assess 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.
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.

Predict 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.

Use 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 requirements:

Be 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 instructions.

Include 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 length.

The specific course learning outcomes associated with this assignment are:

Apply risk-assessment tools to expected rates of return and firm valuations.

Apply valuation models and techniques using cash-flow, earnings-based, and market-based approaches.

Use technology and information resources to research issues in financial analysis and reporting.

Write clearly and concisely about financial analysis and reporting using proper writing mechanics

Reference no: EM13891171

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