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Consider the following data for Nike Inc.: In 2018, it had $37,000.00 million in sales with a 15% growth rate in 2019 , but then

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Consider the following data for Nike Inc.: In 2018, it had $37,000.00 million in sales with a 15% growth rate in 2019 , but then slows by 2% to the long-run growth rate of 5% by 2024 . Nike expects EBIT to be 13% of sales, increases in net working capital requirements to be 5% of any increases in sales, and capital expenditures to equal depreciation expenses. Nike also has $525 million in cash, $38 million in debt, 1,626 million shares outstanding, a tax rate of 25%, and a weighted average cost of capital of 9%. a. Suppose you believe Nike's initial revenue growth rate will be between 10% and 20% (with growth slowing linearly to 5% by year 2024). What range of prices for Nike stock is consistent with these forecasts? Highest price per share: Lowest price per share: b. Suppose you believe Nike's initial revenue EBIT margin will be between 12% and 14% of sales. What range of prices for Nike stock is consistent with these forecasts? Highest price per share: Lowest price per share: c. Suppose you believe Nike's weighted average cost of capital is between 8.5% and 11%. What range of prices for Nike stock is consistent with these forecasts? Highest price per share: Lowest price per share: d. What range of stock prices is consistent if you vary the estimates as in parts (a), (b), and (c) simultaneously? Highest price per share: Lowest price per share

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