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3Qs: Figuring out Facebook’s financials

Fol­lowing much antic­i­pa­tion, Face­book filed for an ini­tial public offering (IPO) after U.S. mar­kets closed on Wednesday. We asked David Sherman, pro­fessor of accounting in the Col­lege of Busi­ness Admin­is­tra­tion, to ana­lyze Facebook’s IPO prospectus and explain what it reveals.

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