Part I- Company description. Write a detailed description of GOOG as a company. The best way to do this is to access its 10-K report and collect information on its business segments and revenues by segments. You can and should also do some basic research on the company. Maximum of 3-4 pages.
Part II- Risk assessment: From the same document, and from discussions in class, discuss what risks the company faces and how it may plan to manage these (this part you will have to imagine on your own!!!). Identify who the competitors (at least one) are and how strong they are and how they may pose a threat. Maximum of 3 pages.
Part IIII: value of its equity- We will use a few models to do this. 1) Dividend model, and 2) free cash flow model, 3) comparables. We have not covered these as yet but will be starting on Friday. 3-4 pages.
In determining the price, we will also determine the cost of equity for GOOG, using CAPM, which has been shown and will be repeated in class.
Part IV: Conclusion: One page
Total length of paper is maximum of 10 pages.