1. You are a stockbroker at Merrill Lynch. Give three well thought out reasons as to why you would call your clients to sell them the Nike stock. Remember, you work on full commission and have to be very persuasive while doing what is in the 'best interests of the clients.

1. Explain and detail the earnings per share of Nike over the last five years. What kind of trend do you notice? Why is this happening?

1. Summarize what the write-up on the bottom half of the Nike Value Line states.

1. What rating does the Nike Value Line give in the upper left? Do you agree with this? Why or why not? (The ratings go from 1 to 5 with 1 being the best rating).

this is the Nike value line:

NIKE, INC. 'B' NYSE-NINE RECENT 124.98 Air 32 1 (Wing 24) RELATIVE PE RATIO 1.80 Ya' 1.0% VALUE LINE TIMELINESS 2 Raised 45021 24.5 174 25 7 60.0 125.4 118 Target Price Range Low AFETY 3025 2026 2027 LEGENDS TECHNICAL 3 Lowoned 4/1932 BETA 1.15 (104 - Musket) 16-Month Target Price Range|Saddam Ndems WARD Low-High Midpoint (% to Mid) -105 $111-4231 $171 (35%) 2025-27 PROJECTIONS Ann1 Total Price Gain Astum high 210 15%% 170 Institutional Decisions * TOT, RETURN 157 1096 shares 13 827 Toded 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 @VALUELINE PUR LIC 25-27 1 22 8. 10 9.46 9.67 9.62 10.17 13.17 14.16 15.34 17:45 19.25 2041 2273 24.15 2401 2122 1 2945 53.49 Sales parsh A 45 85 .66 1.04 1.06 1.15 1.50 142 1.45 2.24 341 2:45 235 4.10 5.15 "Cash Flow" per sh 10.75 72 1.10 1.18 1.35 1.49 215 2.51 249 3.75 4.65 Earnings parsh Au 22 25 ST 35 41 47 .54 .42 .70 .74 1.DT 1.27 1.40 Ci'ds Deal'd parsh CD- 200 23 23 .17 .71 44 45 45 Cap I Spending per sh 349 6.24 6.22 J.41 T.29 7.55 5.77 5.17 409 9.75 11.10 Book Value per sh 20720 20152 18344 19420 19350 1479 10 19020 18320 17840 174010 17140 16824 16430 1601.4 15624 16540 16740 15708 15700 Common She Outsig TED 2014 194 242 27.5 21.4 446 342 Aug Arn't PE Ratio 1.07 1.02 1.04 1.14 1.30 1.09 1.27 1.21 1.44 1.09 1.37 1.70 2 10 1.BB Relative PE Ratio 14%% 1.4% 1.4% 1.7% 1.5% 15% 13% 1.2% 1.0% 1.2% 13% 1.1% 1.1% Aug Arn't Div'd Yield CAPITAL STRUCTURE on of 2128/22 24134 25313 27724 30341 32374 34354 32347 3117 37403 44538 45459 53474 Sales Gain Total Debt $piib mid. Due in 5 Yrs $4360 mid LT Debt $9418 mil. 1415 148% 15.1% 158% 159% 159% 1456 140% 115% 172% 21.5% LT Interest $515 mill $ 175% 140% Cpurging Margin Ed's of Capraall 3734 4384 5184 6064 6490 7084 7474 7054 7210 7440 715 725 Depreciation [Srib 1125 22234 24640 26834 52734 57604 42408 58749 40294 29370 57270 7:134 Net Prall (Smill 14350 Leases, Uncapitalized Annual rentals $534 mill. 25.5% 247% 240% 223% 1474 1328 81% 1615 146% 140% 1795 140% heome Tax Rate Ne Defined Benefit Parisian Plan 975 87% 87% 107% 116% 123% 19 95 105% 79% 129% 1265 139% Net Profit Margin 76680 97004 68604 16424 16670 10517 60040 86590 12272 16617 1:3451 24534 Working Cap1(ril] Preferred Stock Nori Common Stock 1,573,787, 469 shares 2284 12104 11904 10794 20104 54714 34684 34640 94060 94130 4147 Long-Term Debt Grill Class A shares 305,007 252 10341 11154 10824 12747 12254 12447 56124 64408 89550 12767 15358 182439 She, Fruity (mill Class B shares 1,260.760,21 214% 200% 22:8% 238% 245% 239% 393% 327% 176% 234% 2545 295% Ratemon Toll Capl MARKET CAP: $197 billion (Large Cap) 175% 187% 223% 250% 276% 298% 14.4% 3207% 2570% 2:15% Retained to Com Eq CURRENT POSITION 2020 2071 32023 24% 27% ISMILL 30% 27% 27% 27% 31% 13% 49% 29% 23% 20% All Div'ds to het Prat Cash Assou 8787 13457 BUSINESS: NIKE designs, develops, and markets footwear, ap- is another product line for kids. Has about 73,300 employees jin- Inventory QUFOt 7700 porul, equipment, and accessories. Sells products to retail ac- cluding parttimers). Swoosh, LLC, owns 76.8% C. A shares, gainer counts, through MIKE-owned stores and the Intomet, and through a 15.5% CL B, offs/dis, 27% of Cl. B; Vanguard, 8.3%; BlackRock, Current Aseats mix of Independent distributors and loansous in numerous coun- 73% (821 prong). Chairman: Mark G. Parker. CED: John Aocis Payable 2832 2770 ries. Offerings are focused in six categories: running, basketball. Donation. Inc.: Oregon. Add:: One Bowerman Drive, Beaverion, Dest Live Jordan brand, football [socool, training, and sportswear. The OR 97005. Tol.: 508-671-6453. Intermat www.nikain Other 8048 Current Lish NIKE's earnings for fiscal 2022 (year product to the likes of Foot Locker, as well ends May 31st) are likely to clock in at as smaller boutiques, which together make ANNUAL RATES Past Fast Est'd '19 21 of change (pan shy around $3.75 a share. A rise in North up an important avenue in the sneaker 11.0% American demand during the February community. Regardless, NIKE can do this Cash Flow 1057 quarter led to a sales and earnings beat in because it has the reach and financial Eamings that 90-day window. This helped offset a wherewithal to go it alone. The ramifica Book Value 5% decline in receipts out of China, where tions will be felt in the near term. QUARTERLY SALES ( WIL) FUL that country is dealing with another Earnings growth for fiscal 2023 may Aug 31 Nov.30 Fob.23 May 31 COVID outbreak, and there is also some well approach 25% on a year-over- 3015 $374 611 10184 boycotting of western countries' goods. The year basis. Athleisure-based trends are 2020 10660 10325 19104 37403 digital space continues to put up enormous showing no signs of lapsing. Demand has 2021 10514 11243 10657 12314 44535 numbers and NIKE has eliminated many been high in most regions, and we think 12245 11357 12174 46850 third-party vendors, so profitability Chinese sales will perk up soon, as well. 2023 13170 12580 12590 14090 5470 metrics should be on the rise in the years Too, many of the cost constraints that EARNINGS PER SHARE ahead. All told, we think sales will rise have been encumbering profits should ease Aug 31 Nov.10 Feb.24 May 31 slightly more than 5% in fiscal 2022, in as the year rolls on. All told, we are intro 42 249 line with management's call for a mid- ducing an earnings target of $4.65 for fis- 46 .70 1.45 single digit jump on the top line. cal 2023, and we think share net can climb 2021 3.56 The swoosh's direct-to-consumer stra- to $9.50 for the 2025-2027 period. 2022 1.16 3.35 tegy is bad news for the smaller These good-quality shares are attrac- 2023 1.30 1.10 1.10 1.15 4.165 players in the footwear space. Via its tive for the near term. This blue chip QUARTERLY DIVIDENDS PAID G. Web site and apps, which have been great- remains a timely selection for year ahead "dar Mar31 Jun.30 Som.30 Dec.31 ly enhanced during the pandemic, NIKE is relative price performance. Too, with the building strong relationships/loyalty with recent pullback in price tied to the broader 20 20 120 .20 3015 22 22 22 22 its customer base. Leaning on the online market's slump, long-term appreciation 3020 245 245 245 245 model, direct sales were up 15% in the fis- potential is about average. The yield, how- 275 375 375 275 cal third quarter, to $4.6 billion. To that ever, is well below the Value Line median. end, the company is no longer supplying Erik M. Manning April 22, 2022 Al Fiscal years end May Sist (B) Dibed change in share count. Next egs. report due (D) Includes 2 16 dividend paid De. we June. Company's Financial Strength carber 2012. (F) In millions, adjusted for Sock s Price Sbilly Be: 59. (13+* 13. 14: 18. ($1.23) due to box [C) Dividends historicaly paid in early January, |spine. (F) Each share of Class A is convertible Price Growth Pendate c law change: '20, (25e). May not sum due to April, July, and October. = Reinvestment plan | to one share of Class B. Earnings Predictshiity HEREIN. This putlorian is widely tor wubsorber's non non commercial ! To subscribe call 1-800-VALUELINE