Assignment 2

Original PDF ↗ Official solution ↓

Lecturer's official Excel solution (Moodle) — includes his historical-volatility working for FVRR (daily σ 4.49% annualised to 71.33%). The worked solution below follows his figures throughout.

#accounting
#problem-set
#financial-statement-analysis
#gross-margin
#cash-flow
#preferred-stock
#stock-options
#black-scholes
#asc-718

Toolkit

Terms

gross-profit-margin ebitda working-capital preferred-stock liquidation-preference anti-dilution accrual-accounting stock-options black-scholes-model vesting

Lectures

Session 4 — Incorporation, Corporate Taxes & Employee Compensation Session 5 — Financial Statements Analysis Session 9 — Course Recap (Worked Exercises)

setup

HawkEye 360 Analysis & Fiverr Options. Read a real S-1 filing for ratios and preferred-stock rights, then value and expense an employee option grant.
1

Question 1 — HawkEye 360 (S-1/A Analysis)
2

Question 2 — Fiverr (FVRR) Employee Stock Options

Sources

Our worked solution: Problem Sets/assignment 2/Assignment2_Complete.docx
HawkEye 360 S-1/A (consolidated financial statements); FVRR price from Yahoo Finance

Accounting — subject hub
Session 4 - Incorporation, Corporate Taxes & Employee Compensation — Black-Scholes, vesting, option expensing
Session 5 - Financial Statements Analysis — gross margin, EBITDA, cash-flow analysis
Session 9 - Recap — Exercise 6 is the same option-valuation pattern