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please breakdown the following information from the 4 exhibits 1. after tax cost of debt. coupon rate, periods/year, maturity (yr), bond price, par value, tax

please breakdown the following information from the 4 exhibits

1. after tax cost of debt. coupon rate, periods/year, maturity (yr), bond price, par value, tax rate

2. cost of common: CAPM. Rrf , expected Rm, RPm=expected return on market - Rrf=, b rs=Rrf+b(RPm)

3. Weights for WACC. Bond Price, # of bonds, mv of debt=D, stock price=Po, shares oustanding, mv of equity=E, total MV=D+E, and weight debt =Wd=D/Total MV

4. WACC. Wd, Rd(1-T), Wc=100,00%-Wd=, What is Rs and WACC=

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Just looking at the Johanna's estimation of the cost of debt what are some issues? Is her calculation incorrect? what is the right calculation?

Just looking at the cost of equity what are some issues? Is her calculation incorrect? what is the right calculaton?

Should kimi ford recommend an investment in Nike? why or why not explain your answer

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3- Exhibit 1 NIKE, INC.: COST OF CAPITAL Consolidated Income Statements Year Ended May 31 (in millions of dollars except per-share data) 199 1996 1997 199 1 2000 2001 Revenises Cost of goods sold Gress profit Selling and administrative Operating incom Enterest expense Other expense, pet Restructuring chargt, net lscome before income taxes 65.3" 3,906.7 5,503,0 6,065.5 S,493.5 5.403.8-5,784.9 1,895.6 2,563,93,683.5 3,487 3,283.4 3,591.3 3,703.9 6858 975.3 1.379.8 8638 8568 9849 1014 242 39.5 2.3 0.0 4.1 450 8.3 136.7 33 09215232 34.1 746.1 919. 91.4 579.1 5 589.7 294.7 4514 23412 345.9 499.4 253.4 $ 399.7 S 5S12 7948 5 399 Diluted earnings per common share S 1.36 1.88 268 135 ST 20 $ 2.16 Average stares outstanding (diluted) 2940 293.6 297.02960 287.5 98 273.3 Growth (%) Revenue 35 420 40 81) 25 5.5 42.2 45 374)(0.8) 150 3.0 384 439 9.8) 13.0 83 Operating income Margins (%) Gross mrgin 396 40.1 36,5 34 399 39 15.1 15.0 9.09.810.910. Operating macgln Net margin 8.5 8.7 42 .1 6.4 6.2 38.5 386 388 39.5 36.0 Effective tax rate(%). The U.S. statutory tax rate was 3 5% The state tax varied yearly from 25% to 3.5%. Sources of dua: Compwny "ilinge with the Secourities and Ewchange Cemsmissisn (SECL LUIBS Watung Sources of dira Company filing with Page 3 of 8

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