At the end of fiscal year 2008, Nike reported $5,806 million in net operating assets and common shareholders' equity of $7,797 million. Develop a pro forma and valuation at the end of fiscal year 2008 with the following forecasts. Then calculate the per-share value of the 491. 1 million shares outstanding at the end of fiscal year 2008. Use a required return for operations of 8.6 percent and forecast that residual operating income will grow at an annual rate of 4 percent after 2012.

(After working this exercise, you might go to the BYOAP feature on the Web site and develop alternative forecasts and valuations for Nike using the technologythere.)

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2009E 10.0% 9.0% 3.4 2010E 90% 8.5% 3.4 Forecast 2011E 2012E Saies growth rate Core profit margin Asset turnover 8.090 80% 3.5 7.0% 7.5% 3.6