For the case Spotify$$s Direct$-$Listing IPO $($Ivey Case: $9$B$18$N$006),$ please answer the following questions and explain your reasoning where appropriate: $1.$ What are the differences between a traditional listing and the direct listing being pursued by Spotify? Why is Spotify pursuing a direct listing? Do you see direct listings becoming more common? $2.$ Using the information provided in the case, what would you value Spotify$$s shares to be trading at on the first day of its listing? Justify your valuation using the discounted cash flow $($DCF$)$ method as well as the relative valuation methods. $3.$ Based on your analysis, do you recommend Wang to purchase Spotify stock on the first day of listing? Suggestions & Hints: $$ Read Damodaran$$s blog $($under Exhibit $10).$ Use his forecast of revenue growth and Spotify$$s revenue in $2017$ to estimate future revenue in the DCF analysis. $$ Use Damodaran$$s assumption of future EBIT margin $($Exhibit $10)$ to estimate future EBIT in the DCF analysis. $$ Value of the firm is the PV of Free Cash Flows $($FCF$),$ where: FCF $=$ OCF $$ Capex $$ Inc. WC $=$ EBIT$(1$ Tc$)+$ Depreciation $$ Capex $$ Inc. WC $$ Given in Exhibit $10$ For simplicity, you can assume the $5$ Year Beta$$ in Exhibit $9$ are asset betas. $$ Notice that Spotify does not have interest$-$bearing debt, so you can consider it as all$-$equity financed. $$ Don$$t forget to calculate the PV of cash flows after $2027$ using Wang$$s estimated growth rate. $$ All the cash flows are in euros, you$$ll need to convert your result into US dollars $($the exchange rate is given$).$ For the relative valuation analysis, you can just use the information from Exhibit $9$ without searching for additional information online. Remove the less relevant firms or any outliers, if necessary. $2$