Get the cost of debt and calculate the cost of equity using Capm, ddm$,$ and the earnings capitalization ratio using whatever assumptions necessary

$\backslash$table$[[$Consensus EPS estimates:$],[\backslash$table$[[$FY $2002,$FY $2003,$Value Line Forecast of Dividend Growth from $\text{'}98-\text{'}00$ to $\text{'}04-\text{'}06$:$,],[$$$,2\mathrm{.}32,$$$,2\mathrm{.}67]],]]$

Data have been modified for teaching purposes.

Sources of data: Bloomberg Financial Services, Ibbotson Associates Yearbook $1999,$ Value Line Investment Survey, IBES.

Nike, Inc.: Cost of Capital

Consolidated Balance Sheets

$\backslash$table$[[($in millions of dollars$),$As of May $31,],[2000,2001],[$Assets$],[$Current assets:$],[$Cash and equivalents,$$254\mathrm{.}3,304\mathrm{.}0],[$Accounts receivable,$1,569\mathrm{.}4,1,621\mathrm{.}4$