The market has a 8 percent expected rate of return and the risk free rate is 3%. What is the required rate of return for NIKE using the CAPM? O 5.75% 8.75% 0 4.05% 9.25% NIKE, INC. 'B' NYSE:NKE PORN 136.64 Mo 40.8 (Hong :) PANE 1.84 0.8% www. RECENT PE : RELATIVE DVD VALUE YLD LINE TIMELINESS 3 Lowe ono High 23.1 24.8 28.2 40.1 4919 682 654 652 152 LOW 21.3 257 350 1018 1480 147. 349 SAFETY 453 49.0 712 Target Price Range 503 R900 LEGENDS 60.0 125.4 2024 2025 2026 TECHNICAL 3 Loved 160 cm Related Sogn 200 Hotel 22 BETA 115 100 2015 -100 Dons 18-month Target Price Ranger 100 Low High Midpoint to Mid) $91-$212 5152 (10%) 2024-25 PROJECTIONS Ann Total 45 Price Gain Return 175 (30%) 145 Institutional Decisions TOT RETURN 321 Thes VLAR 30 DOCE 954 20 1 y 020 997 786 354 10 By 1061 515 1031010009231023772 SY 1280 100.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 VALUE UNE PUBLI24-26 3.54 722 E 10 9.48 9.82 10.97 13.17 14.10 15.98 17.85 1925 20.91 22.73 24.95 24.01 27.45 31.10 Sales por sh 61.35 66 36 LO 1.08 1.15 1.30 142 1.82 1.85 228 2.82 301 2.95 3.02 2:35 160 4.45 Cash Flow persh 9.25 72 86 88 97 1.18 135 1:49 185 216 251 2.40 249 185 3.15 3.95 Earnings per the 8.00 12 15 .18 22 25 27 30 35 41 .47 54 82 .70 78 B 90 1.04 1.12 Dives Decld per sho 1.86 12 23 28 317 23 39 38 51 56 68 57 81 71 70 50 60 Cap Spending persh 35 303 3.49 3.90 448 5.04 5.18 567 6.24 6.22 7.41 7.29 7.55 6.13 5.77 517 7.75 8.30 Book Value per sh 2100120720 20152) 1944 1940 1936019020 1320 1788.0 174001714016820 16430 16010 1568015560 1580.0 1565.0 CommonShs Otto 15000 179 16.5 178 153 16:4 182 2044 194 242 244 21.6 23 3220 486 Belles are Avg Ann TPE Ratio 2011 95 86 60 1.07 1,02 1.04 1.14 1.30 1.09 1.23 1.44 1.09 137 1.70 249 Value Line Relative PE Ratio 1.10 15 13 124 10% 194 13 1.1% 1.03 Avg Ann Did Yield LO Percent 1005 share 1.10 &1899 1 2.00 760 275 127 114 160 HO 17 T100 12 165 178 153 14 2624 95 .86 30 1.07 16 104 114 130 109 127 1.4 15 1.4 1 1.5 1 159 13 CAPITAL STRUCTURE as of 2/2121 24123 25313 27799 Total Debt 50410 mill. Due in 5 yrs $4500 m 15.15 161 LT Debt $9412 mil LT Interest 5515 mil 14 15.15 3050 (406 Capital 3720 1380 STRO 2133022230 2040 26930 Leses, Uncapitalized Annual rentals 5553 mil 250 255 267 21 No Defined Benefit Pension Plan 10:24 9.7 73000 780 9700086600 Preferred Stock None Common Stock 1,579,957.074 shares 2750 228.0 12100 1199.0 Class A shares: 305,011,252 38430 10081 11198 10224 Clase share: 1.274,955,822 21.15 21.0% 20.0% 226 217 21.45 721% 249 MARKET CAP: $216 billion (Large Cap) 16.0% 15.5% 1585 17.5% CURRENT POSITION 2019 2020 2/20/21 28 289 29% (SMILL) 30% Cash Assets 4663 8787 12520 BUSINESS: NIKE designs, devel Receivables 4272 2749 Inventory (UFO) 5622 3669 parel, gulment and action 7367 6593 Other 1968 1653 counts through NIKE-owned store 1810 Current Assets 76325 20556 24700 more of independent distributors a Accts Payable 2012 2248 2257 tries. Offerings are focused in Debt Due 15 251 4 the Jordan brand, football socon Other 5239 5785 6833 Current Liab. 7866 8894 NIKE's fiscal thi (years end May 311 ANNUAL RATES Past Past Estd 18-20 with of charge per shi the investa 10 Yrs. 5 Yr. to 24-26 Sales 9.5% 8.5% 10.0% Shares of the footw "Cash Flow" 10.0% 7.5% 21.0% trending higher in th Eamings 9.5% 7.5% 24.0% the release of Febru Dividends 13.5% 13.0% 12.0% Book Value and so too were expec 2.5% -3.0% 11.0% Fiscal QUARTERLY SALES (5 ml) and earnings. This Full Year Ends Aug.31 Nov.30 Feb.28 May 31 Head the selloff that follow Year of results that were 2018 9070 8554 8984 9789 36397 $10.4 billion missed t 2019 9948 9374 9611 10184 39117 lion, while earnings 2020 10660 10326 10104 6313 37403 share versus a conse 2021 10594 11243 10357 11156 43350 2022 1232512495 11650 12210 sales continued to rix 48680 Fiscal step back from the fe EARNINGS PER SHARE AB Year Fiscal this fiscal year. Too, Ends Aug 31 Nov.30 Feb.28 May 31 Year tied to problems at 2018 57 .46 .68 .69 2.40 2019 .67 52 receipts in the Nort .68 62 2.49 Wall Street follows t1 2020 86 .70 .78 d.51 1.85 2021 -95 .78 90 .52 and the quotation sta 3.15 2022 1.15 1.00 1.10 .70 3.95 reading did not me the stock had been Cal QUARTERLY DIVIDENDS PAID Full endar Mar 31 Jun 30 Sep 30 Dec.31 Year year, so profit taking Our earnings estir 2017 .18 .18 .18 .18 72 is up by a dime 2018 20 20 .20 20 .80 2019 22 .22 After factoring in t 22 22 B8 2020 245 245 .245 February quarter ai 245 98 2021 275 275 the May quarter, we (A) Fiscal years and May 31st. (B) Dised change in share count. Next egs, repo camings Excludes nonrecurring 07, 2008 lale June B6, 09 (136): 13, 14, 18, ($1.23) due to tax law change 20, 125c). May not sum due to (C) Dividends historically paid in early April, July, and October Reinvestme 92021 w Line Inc Algsed Facts and from sout THE PURUSHER IS NOT Full 60 50 40 30 MOEX 1 y. 20 % TOT. RETURN 3/21 Thes VL ARITH STOCK 62.0 99.7 3 y 106.1 51.6 5 yr. 128.6 100.0 2020 2021 2022 VALUE UNE PUB, LLC 24-26 24.01 27.45 31.10 Sales per sh A 41.85 2.35 3.60 4.45 "Cash Flow" per sh 9.25 1.85 3.15 3.95 Earnings per sh AB 8.00 93 1.04 1.12 Div'ds Decl'd per sh CD 1.66 570 50 .60 Cap'l Spending per sh .85 5.17 7.75 8.30 Book Value per sh 10.65 1558.0 1580.0 1565.0 Common Shs Outst'g EF 1500.0 48.6 Bold figures are Avg Ann'i P/E Ratio 20.0 2.49 Value Line Relative P/E Ratio 1.10 estimates 1.0% Avg Ann'l Div'd Yield 1.0% 37403 43350 48680 Sales (Smill) A 62750 11.3% 14.7% 15.5% Operating Margin 20.0% 721.0 725 770 Depreciation (Smill) 975 2937.0 4975 6200 Net Profit (Smill) 12000 10.6% 17.0% 20.0% Income Tax Rate 21.0% 7.9% 13.3% 12.7% Net Profit Margin 24.3% 12272 15500 16000 Working Cap'l (Smill) 18000 9406.0 9300 8500 Long-Term Debt (Smill) 5000 8055.0 12200 13000 Shr. Equity (Smill) 16000 17.6% 24.5% 30.0% Return on Total Cap'l 58.0% 36.5% 41.0% 47.5% Return on Shr. Equity 75.0% 18.4% 27.5% 34.0% Retained to Com Eq 59.5% 49% 33% 28% All Div'ds to Net Prof 21% product line for kids. Has about 76,700 employees (in- art-timers). Swoosh, LLC, owns 74.9% Cl. A shares, B; ofts./dirs., 3.8% of Cl. B; Vanguard, 8.6%; BlackRock, 20 proxy). Chairman: Mark G. Parker. CEO: John Inc.: Oregon. Addr.: One Bowerman Drive, Beaverton, 5. Tel.: 503-671-6453. Internet: www.nikeinc.com be an all-time record for the swoosh, uite the accomplishment given the top of the world's largest health an a century. The company's digital