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FACEBOOK IPO ANALYSIS
- Order Summary
- Type of assignment:Coursework
- Academic level:University Level, Master’s
- Referencing style:Harvard
- Number of sources:7
- Subject:Finance
- Client country:Other
Assignment extract:
covering multiple questions using (4) main resources.
Assignment Question:
The assignment is based on four documents
A case study ‘The Facebook IPO hype: a rude social awakening’
Facebook IPO prospectus
An Excel file containing daily share price of Facebook since its
IPO (FB shareprice)
Facebook’s Annual Report 2016
Read the case study and the relevant parts of the Facebook IPO prospectus and annual report to answer the following questions:
(i) An IPO marks a strategic milestone for a company.
(a) Explain the benefits and drawbacks of going public. (b) What motivated Facebook to go public?(10 marks)
(ii) Facebook had several avenues to raise funds. Why was it relatively easier for Facebook to raise capital from the stock markets over debt? Was an IPO the most suitable choice?(7.5 marks) (iii) On page 37 of the IPO prospectus, Facebook provides information on the ‘Use of
proceeds’. What is your view on how Facebook planned to use the capital raised
from the IPO? Should Facebook invest IPO proceeds in financial securities?
(10 marks) (iv) It is incorrect to state that Facebook raised $16 billion through its IPO. Why?(5 marks)
Answer preview:
Word: 2,200