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solve this please I. (2096) Nike had sales of $20 billion in 2016. Suppose you expect its sales to grow at a rate of 8%
solve this please
I. (2096) Nike had sales of $20 billion in 2016. Suppose you expect its sales to grow at a rate of 8% in 2017, but then slow by 1% per year to the long-run growth rate that is characteristic of the apparel industry-5%-by 2020, Based on Nike's past profitability an investment needs, you expect EBIT to be 9% of sales, increases in net working capital requirements to be 10% of any increase in sales, and capital expenditures to equal depreciation expenses. If Nike has $2 billion in cash, $30 million in debt, 500 million shares outstanding, a tax rate of 20%, and a weighted average cost of capital of 10%, what is your estimate of the value of Nike's stock in early 2017Step by Step Solution
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