Facebook, Inc is a mobile application and Web site that enables people to connec
ID: 2566628 • Letter: F
Question
Facebook, Inc is a mobile application and Web site that enables people to connect, share, discover and communicate with each other. The company also owns Instagram, messenger, Whats App and Oculus.
1) Review Item 5 (Dividend Policy) of the 2015 annual report. https://s21.q4cdn.com/399680738/files/doc_financials/annual_reports/2015-Annual-Report.pdf (Links to an external site.)Links to an external site.
2) Review the balance sheet for Facebook. What is the par value of its Class A common shares?
3) Does Facebook have any treasury stock? How do you know?
Explanation / Answer
1) Dividend Policy
The company have never declared or paid any cash dividend on our common stock. They intend to retain any future earnings and do not expect to pay dividends in the foreseeable future. Their credit facility contains restrictions on our ability to pay dividends.
2) The Par value of common stock is given in Balance sheet as - Common stock, $0.000006 par value.
3) There is no Treasury stock in the balance sheet. The number of shares issued and outstanding are the same.
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