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Could u please answer the first question from the case attached. Case 15 -Nike, Inc.: Cost of Capital Joanna Cohen was tasked with determining the

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Could u please answer the first question from the case attached.
Case 15 -Nike, Inc.: Cost of Capital Joanna Cohen was tasked with determining the value of Nike, Inc. in order to determine whether or not she should recommend that her firm invest in Nike. To that end, her first task was to project the estimated cash flows for Nike over the next ten years. With that accomplished, her next task was to estimate an appropriate mine Nike's valuation. At the time of her analysis, Nike equity was trading at $42.09 per share. cost of capital for use with these cash flows to deter- 1. Component costs of capital. We discussed how Joanna improperly calculated the cost of debt. How did she make that calculation? What is technically wrong with that approach? On what basis should the cost of debt be determined? To estimate the cost of equity, Joanna considered a variety of methods. What were those methods? Which one did she choose? Do you agree with her choice? Why or why not? What method do you recommend in this case? 2

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