Calculate the price of facebook inc

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Reference no: EM132419877

Facebook Inc. has current earnings per share of stock at $6.26. The book value per share is $32.64. The company does not pay dividends.

A. Assuming a growth rate of earnings of 15% per year and a required return of 16% per year, calculate the price of Facebook Inc.

B. State the stock price of Facebook, Inc. at the end of trading on 11/5/19.

C. Based on your analysis, indicate if you would buy or sell this stock and why.

D. Assume you change your earnings growth estimate to 14% per year. Calculate the price of Facebook Inc.

E. Based on your analysis in c, indicate if you would buy or sell this stock and why.

Reference no: EM132419877

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