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Calculate the mva for facebook

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Reference no: EM132545238

Consider the information in the table for Facebook and Netflix

Profile Information                                  Facebook                               Netflix

Price                                               $198.36                             $315.10

EBITDA                                           $27.46B                              $1.96B

Beta                                                     1.3                               1.39

Market Cap                                      $476.06B                              $137.77B

Return on Assets                               14.35%                                 4.41%

Average Volume                                      17.24 million                    6.39 million

Total Debt/Equity (BV)                              8.33                               206.27

EPS                                                         $6.74                               $2.54

Shares Outstanding                               2.4B                            437.22 million

Revenue                                               $58.95B                        $17.63B

Book Value/Share                                     $30.29                            $13.95

Current Ratio                                             5.38                             .85

Total Debt                                            $7.21 B                            $12.59B

Bond Ratings                                       A (111 basis points)               BB (323 basis points)

Other relevant financial information:

10 year treasury note = 1.96%

Market Risk Premium = 6.25%

Tax rate = 21%

Question 1: Calculate the MVA for Facebook.

Reference no: EM132545238

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