Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of

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Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of $18.92 per share.

a. Using the average P/E multiple in Table 10.1, estimate Nike's share price.

b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 10.1?

c. Using the average price-to-book value multiple in Table 10.1, estimate Nike's share price.

d. What range of share prices do you estimate based on the highest and lowest price-to-book value multiples in Table10.1?

Suppose that in May 2010, Nike had EPS of $3.51

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:11 AM

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Fundamentals of Corporate Finance

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