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Presentation Outline - Talk about Page and Brin, founders...

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Talk about Page and Brin, founders of Google o Mathematicians, Computer Nerds o Great at that, but not the guys you want running your business Page saw internet as a math problem to be solved We typically think of it as facebook or espn.com o Great ideas are worth Billions Google o Young – 11 years old Stock o Public in August 2004 – went public at $85/share End of 2007 price was at $750/share 782% return o If you bought a round lot, 100 shares, of GOOG at IPO and sold in November 2007 $66,500 profit o If you sold now, where its hovering around $500 $41,500 profit Your kid’s college education on a good investment o Key: In a GOOD COMPANY o Not a measure of returns, just stock price o Book Value = Stockholder Equity Because of Accounting equation (A + L = SE) Book Value in 2008 = $28,238 million o Market Value is a better representation of the true value of a company Market Value in 2008 was $1.023 billion. o Big difference in values bc financial statements are transaction based (after the fact) Does not account for Time Value Investors buy stock for future expectations, not underlying value to investors o Important in valuing Google bc investors in GOOG rely heavily on intangible assets
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This note was uploaded on 12/07/2009 for the course MGMT 434 taught by Professor Roberttrumble during the Spring '09 term at VCU.

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Presentation Outline - Talk about Page and Brin, founders...

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