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Nike, Inc.: Cost of Capital
Nike, Inc.: Cost of Capital
Nike, Inc.: Cost of Capital
:
Cost of Capital
Nike, Inc.:
Case
Background:
Cost of debt
The
PV= 95.60
N=40
Pmt=-3.375
FV=-100
Comp I = 3.58% (semiannual) 7.16% (annual)
Cost of equity
Joanna
Cost of equity
Therefore, my estimate of cost of equity will be:
5.74% + (5.9%)* 0.69 = 9.81%
The WACC
Thus,
4.44%*0.101
+ 9.81%*0.899 = 9.27%