Question

QUESTION 16 The pre-money valuation of Pinterest on June 6, 2017 was approximately $2 billion less than the valuation of Pinterest at the $19 pe share IPO price. True False QUESTION 17 The operating activities of Pinterest were a use of cash rather than a source of cash in 2017 and 2018. True False QUESTION 18 The global advertising market is projected to grow to $1 trillion in 2022 from $964 billion in 2018, representing a 5% compound annual growth rate ("CAGR"), according to IDC True False

Answer 1

Solution:

16: True
The valuation of Pinterest was $10.65 billion as per $16/share. If the valuation is done at $19/share, it comes out to be $12.74 billion Which is approximately $ 2 billion less than the valuation in 2017.

17. False
Pinterest was a source of cash in 2017 & 2018 where it raised money for funding its operations.

18. True
The global advertising market is set to grow at an approximate CAGR of around 5% to a trillion dollar industry.