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Consider the following data for Nike Inc. In 2009 it had $19, 100 million in talos with a 10% growth rate in 2010, butthon kws

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Consider the following data for Nike Inc. In 2009 it had $19, 100 million in talos with a 10% growth rate in 2010, butthon kws by 1% to the long-run growth rate of % by 2015 Nike expects EBIT to be 10% of sales, increases in not working capital requirements to be 10% of any increases in sales, and capital expenditures to equal depreciation expenses, Nike also has $2,300 million in cash $32 million in debt 486 in shares outstanding, a tax rate of 24%, and a weighted average cost of capital of 10% a. Suppone you bolove Nikos intal revenue growth rate will be betwoon 7% and 11% (with grown blowing linearly to 6% by year 2015) What range of prions for Nike stock is consistent with these forecasts? b. Suppose you believe Nike's initial revenue EBIT margin will be between 9% and 11% of sales What range of prices for de stock is consistent with these forecasts? c. Suppose you believe Nike's weighted average cost of capital is between 9.5% and 12%. What range of prices for Nike stock is consistent with these forecasts? d. What range of stock prices is consistentil you vary the estimates as in parts (a), (b) and (e simultaneously? Consider the following data for Nike Inc. In 2009 it had $19, 100 million in talos with a 10% growth rate in 2010, butthon kws by 1% to the long-run growth rate of % by 2015 Nike expects EBIT to be 10% of sales, increases in not working capital requirements to be 10% of any increases in sales, and capital expenditures to equal depreciation expenses, Nike also has $2,300 million in cash $32 million in debt 486 in shares outstanding, a tax rate of 24%, and a weighted average cost of capital of 10% a. Suppone you bolove Nikos intal revenue growth rate will be betwoon 7% and 11% (with grown blowing linearly to 6% by year 2015) What range of prions for Nike stock is consistent with these forecasts? b. Suppose you believe Nike's initial revenue EBIT margin will be between 9% and 11% of sales What range of prices for de stock is consistent with these forecasts? c. Suppose you believe Nike's weighted average cost of capital is between 9.5% and 12%. What range of prices for Nike stock is consistent with these forecasts? d. What range of stock prices is consistentil you vary the estimates as in parts (a), (b) and (e simultaneously

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