Application: Forecasting Netflix’s Revenue, Costs, and Estimated Cash Flows

this Application Assignment, you will revisit the Netflix and Blockbuster Financial Data handout to answer the following questions:

Forecast Netflix revenue, costs, and estimated cash flows into the future. What is an appropriate discount rate for Netflix’s forecasted cash flows? What is an appropriate risk-adjusted rate of return for use in evaluating an investment in Netflix? What is the estimated fair market value of 100% of Netflix’s equity?