Facebook’s market cap is the price of a share multiplied by the number of shares. Blue and red usually represent teh debt of a company. Facebook has none. Facebook is 100% equity funded.
Companies usually have both lenders who own bonds and owners who have some shares of the company.
The company which has no debt may focus on spending money on R&D or new acquisitions.
Remarks:
Future is uncertain, but people prefer to invest smaller amounts in the present and gain larger profits in the future
The debt stems from non-listed debt instruments such as are bank loans or listed ones - the bond market
Function WACC
