Consider the following data for Nike Inc.: In 2009 it had $ 19 comma 200 million in sales with a 10% growth rate in 2010, but then slows by 1 % to the long-run growth rate of 5% by 2015. Nike expects EBIT to be 10% of sales, increases in net working capital requirements to be 10% of any increases in sales, and capital expenditures to equal depreciation expenses. Nike also has $2 comma 300 million in cash, $32 million in debt, 486 million shares outstanding, a tax rate of 24%, and a weighted average cost of capital of 10%. a. Suppose you believe Nike's initial revenue growth rate will be between 7 % and 11 % (with growth slowing linearly to 5% by year 2015). What range of prices 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 Nike 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 consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously?

Suppose that in July 2013, Nike Inc. had sales of $25,354 million, EBITDA of $3,249 million, excess cash of $3,333 million, $1,388 million of debt, and 890.9 million shares outstanding. Price E Book Average Maximum Minimum 29.84 + 136% -62% 2.44 + 70% -63% Enterprise Value Sales 1.12 + 55% - 48% Enterprise Value EBITDA 9.76 + 86% - 34% a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $ (Round to the nearest cent.) Suppose that in July 2013, Nike Inc. had sales of $25,354 million, EBITDA of $3,249 million, excess cash of $3,333 million, $1,388 million of debt, and 890.9 million shares outstanding. Price E Book Average Maximum Minimum 29.84 + 136% -62% 2.44 + 70% -63% Enterprise Value Sales 1.12 + 55% - 48% Enterprise Value EBITDA 9.76 + 86% - 34% a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $ (Round to the nearest cent.)