Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that in April 2019, Nike Inc. had sales of $36,410 million, EBITDA of $5,228 million, excess cash of $5,246 million, $3,807 million of

image text in transcribed

Suppose that in April 2019, Nike Inc. had sales of $36,410 million, EBITDA of $5,228 million, excess cash of $5,246 million, $3,807 million of debt, and 1,580.2 million shares outstanding. a. Using the average enterprise value to sales multiple in the table here,, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to sales multiple will be $. (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? The range of prices using the average enterprise value to sales multiple is as follows: The highest price will be $ . (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. Nike's share price using the average enterprise value to EBITDA multiple will be $ (Round to the nearest cent.) d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? The range of prices using the average enterprise value to EBITDA multiple is as follows: The highest price will be $ . (Round to the nearest cent.) The lowest price will be $ (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) P Price Enterprise Value E Book Sales Enterprise Value EBITDA Average 23.99 7.46 2.17 19.98 Maximum +81% + 193% +96% +73% Minimum -45% - 83% -80% -81%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Futures and Options Markets

Authors: John C. Hull

8th edition

978-1292155036, 1292155035, 132993341, 978-0132993340

More Books

Students also viewed these Finance questions

Question

2. Measure the implicit interest rate on credit sales.

Answered: 1 week ago