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:

1. 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.
2. 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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.