Using the information provided in Twitter’s 10-K form, estimate a reasonable revenue growth rate and cost of capital for the company. Develop your estimates based on historical trends, market dynamics, and broader industry conditions. Some relevant data is provided in the accompanying Excel file, but additional information may need to be sourced independently through online research. Clearly outline your assumptions of revenue growth rate and cost of capital and provide your reasoning to justify your chosen rates. Next, utilize the accompanying Excel valuation template to calculate Twitter’s value as of April 22, 2022. Analyze how sensitive the valuation results are to changes in the revenue growth rate assumptions. Discuss the implications of this sensitivity when assessing the deal. Does this acquisition represent a good deal for Elon Musk? Why or why not?
This is the main task of the assignment. Using the link for the 10K report and with the help of the given formulas you need to file a report and calculate everything in an excel file.
