Give a brief statement about the fundamental future growth


1. Give a brief statement about the fundamental future growth of Facebook. What are some qualitative factors that you, as the analyst should consider when evaluating your company's likely future financial performance? How much would the Federal Reserve's function affect your firm? Is business risk a concern for your organization?

2. Bond Rating and Debt Percentage: Find facebooks most recent bond rating. Who gave the rating? Is it investment grade? What is the debt percentage in the capital structure? What is the Yield to Maturity (YTM) for a long term bond for sale? This information can be found in the "Bonds" section of Morningstar.com, on Yahoo Finance, or Mergent (Sullivan University). If your company has no debt, just state such.

3. Capital Asset Price Model (CAPM): Briefly discuss CAPM from the standpoint of investors and managers. Now calculate your firm's CAPM. It is recommended that you use treasury security as the risk free rate - you pick which one (It would probably be best to use the 5 or 10 year Treasury note). Beta can be either calculated or you can use one from the internet (provide reference). Yahoo finance lists the most current beta under "key statistics." As for the risk for the market, search the most recent. Usually it is around 5% to 6%.

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Risk Management: Give a brief statement about the fundamental future growth
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