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How Might Existing Facebook Shareholders Be Hurt by the Deal

question 53

Essay

How might existing Facebook shareholders be hurt by the deal? What do current shareholders have to assume about future earnings growth to benefit from the deal?


Definitions:

Net Income

The residual financial gain of a company post all expenses and taxes being deducted from the revenue.

Net Sales Revenue

Net Sales Revenue is the total revenue from sales of goods or services after deducting returned goods and any allowances or discounts.

Bank Reconciliation

A process of ensuring that the bank's records of an individual's or company's cash balance matches the financial records of the company.

Depositor's Book

A record book kept by a depositor, detailing all deposits and withdrawals from a bank account.

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