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Nike, Inc. Case StudyCost of Capital |

The Nike Inc. Cost of Capital case study solution

contains an 1,100 word answer to the four

questions below, a financial analysis in excel that

compares Joanna's financials to the correct

financials, and a PowerPoint presentation that

summarizes the case and walks the audience thru

the financial analysis.

The cost of the solution (3 files; word solution, excel

financial analysis and PowerPoint presentation) is

$6.95. If you have any questions, please e-mail me

at admin@mbacasestudysolutions.com

If you are ready to purchase this solution, you can

pay via PayPal via the PayPal link below. The

solution will be available for immediate download

once payment is made.

contains an 1,100 word answer to the four

questions below, a financial analysis in excel that

compares Joanna's financials to the correct

financials, and a PowerPoint presentation that

summarizes the case and walks the audience thru

the financial analysis.

The cost of the solution (3 files; word solution, excel

financial analysis and PowerPoint presentation) is

$6.95. If you have any questions, please e-mail me

at admin@mbacasestudysolutions.com

If you are ready to purchase this solution, you can

pay via PayPal via the PayPal link below. The

solution will be available for immediate download

once payment is made.

1. What is the WACC and why is it important to estimate a firm’s

cost of capital? Do you agree with Joanna Cohen’s WACC

calculation? Why or why not? Why is it important to estimate a firm’s

cost of capital? What does it represent?

2. Calculate the costs of equity using CAPM and the dividend

discount model. What are the advantages and disadvantages of

each of these methods? Are they any other methods you could use?

(Explain the method and calculate for extra credit).

3. If you do not agree with Cohen’s analysis, calculate your own

WACC for Nike and be prepared to justify your assumptions. (The

key to this case is to re-estimate all the factors entering the WACC

calculation). What mistakes did Joanna Cohen make in her

analysis? Which method is best for calculating the cost of equity?

4. What should Kimi Ford recommend regarding an investment in

Nike? Is the price of Nike overpriced, underpriced, or fairly priced?

Show calculations.

cost of capital? Do you agree with Joanna Cohen’s WACC

calculation? Why or why not? Why is it important to estimate a firm’s

cost of capital? What does it represent?

2. Calculate the costs of equity using CAPM and the dividend

discount model. What are the advantages and disadvantages of

each of these methods? Are they any other methods you could use?

(Explain the method and calculate for extra credit).

3. If you do not agree with Cohen’s analysis, calculate your own

WACC for Nike and be prepared to justify your assumptions. (The

key to this case is to re-estimate all the factors entering the WACC

calculation). What mistakes did Joanna Cohen make in her

analysis? Which method is best for calculating the cost of equity?

4. What should Kimi Ford recommend regarding an investment in

Nike? Is the price of Nike overpriced, underpriced, or fairly priced?

Show calculations.