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Assuming that "Cost of Revenue" is the only variable cost and using the previously calculated information, what is Facebook's Margin of Safety in 2019 (round 2 decimal places)?

Assuming that "Cost of Revenue" is the only variable cost and using the previously calculated information, what is Facebook's Margin of Safety in 2019 (round 2 decimal places)?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Assuming that "Cost of Revenue" is the only variable cost and using the previously calculated information, what is Facebook's Margin of Safety in 2019 (round 2 decimal places)?
  2. Assuming that "Cost of Revenue" is the only variable cost, what is Facebook's Magnitude of Operating Leverage for 2019 (round 2 decimal places)?
Revenue Costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total costs and expenses Income from operations Interest and other income, net Income before provision for income taxes Provision for income taxes FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Net income Less: Net income attributable to participating securities Net income attributable to Class A and Class B common stockholders Earnings per share attributable to Class A and Class B common stockholders: Basic Diluted Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: Basic Diluted Share-based compensation expense included in costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total share-based compensation expense $ $ $ $ $ $ 2019 70,697 12,770 13,600 9,876 10,465 46,711 23,986 826 24,812 6.327 18,485 $ 6.48 6.43 Year Ended December 31, 18,485 $ 2,854 2,876 $ 377 3,488 569 402 4,836 $ $ $ $ 2018 55,838 9,355 10,273 7,846 3,451 30,925 24,913 448 25,361 3,249 22,112 (1) 22,111 7.65 7.57 2,890 2,921 284 3,022 511 335 4,152 $ $ $ $ $ $ $ 2017 40,653 5,454 7,754 4,725 2,517 20.450 20,203 391 20,594 4,660 15,934 (14) 15,920 5.49 5.39 2,901 2,956 178 2,820 436 289 3,723
Transcribed Image Text:Revenue Costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total costs and expenses Income from operations Interest and other income, net Income before provision for income taxes Provision for income taxes FACEBOOK, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Net income Less: Net income attributable to participating securities Net income attributable to Class A and Class B common stockholders Earnings per share attributable to Class A and Class B common stockholders: Basic Diluted Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: Basic Diluted Share-based compensation expense included in costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total share-based compensation expense $ $ $ $ $ $ 2019 70,697 12,770 13,600 9,876 10,465 46,711 23,986 826 24,812 6.327 18,485 $ 6.48 6.43 Year Ended December 31, 18,485 $ 2,854 2,876 $ 377 3,488 569 402 4,836 $ $ $ $ 2018 55,838 9,355 10,273 7,846 3,451 30,925 24,913 448 25,361 3,249 22,112 (1) 22,111 7.65 7.57 2,890 2,921 284 3,022 511 335 4,152 $ $ $ $ $ $ $ 2017 40,653 5,454 7,754 4,725 2,517 20.450 20,203 391 20,594 4,660 15,934 (14) 15,920 5.49 5.39 2,901 2,956 178 2,820 436 289 3,723
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