As a part of daily routine of equity research, we constantly select a public firm and evaluate its financial health as well as the cost of capital. This project requires you to choose a publicly traded firm that you are interested in. Using the firms financial statements (10K Annual Report) filed with the SEC and your own research, complete the following:

Firm: Nike

1) What is the cost of equity for the firm? Preferably, using both CAPM and DDM to estimate the cost of equity.

2) What is the cost of debt for the firm?

3) What is the cost of capital for the firm?

***All of your calculations should be computed in Excel and should be well organized and labeled. You can find financial statements by searching for a companys annual report, or you may also be able to locate the financial statements on websites such as Yahoo finance or Bloomberg. Be sure to cite all data sources (a link to the data would be sufficient) and references.