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Complete a report for Nike with their current market capital positions, cost of financing sources, and weighted average cost of capital (WACC). Please discuss all assumptions used in calculation of the WACC, including; the market risk premium (MRP), tax rate paid, Beta and firm growth rate.

Breakdown 8/31/2019 5/31/2019 2/28/2019 11/30/2018 TTM v Cash flows from operating acti... 1,101,000 847,000 Net Income 4,304,000 1,367,000 989,000 177,000 Depreciation & amortization 175,000 178,000 714,000 184,000 Deferred income taxes -26,000 -42,000 -33,000 56,000 -7,000 Stock based compensation 80,000 364,000 99,000 93,000 92,000 Change in working capital -1,235,000 -476,000 756,000 -367,000 370,000 190,000 Accounts receivable -432,000 -456,000 -136,000 -30,000 -270,000 Inventory -735,000 -264,000 37,000 -238,000 Accounts Payable Other working capital 3,936,000 110,000 1,737,000 852,000 1,237,000 Other non-cash items 4,996,000 Net cash provided by operatin-.. 394,000 2,010,000 1,068,000 1,524,000 v Cash flows from investing activi... Investments in property, plant a... -1,060,000 -284,000 -216,000 -287,000 -273,000 Acquisitions, net Purchases of investments -2,461,000 -504,000 -791,000 -553,000 -613,000 Sales/Maturities of investments 549,000 952,000 3,350,000 683,000 1,166,000 Other investing activites -109,000 -143,000 124,000 88,000 Net cash used for investing a. -279,000 -348,000 Cash flows from financing activ... Debt repayment 7,000 -10,000 -9,000 Common stock issued Common stock repurchased -3,925,000 -999,000 -881,000 768,000 1,277,000 Dividends Paid -345,000 -318,000 1,357,000 -346,000 -348,000 Other financing activites -18,000 -17,000 -6,000 Net cash used privided by (us-. 977,000 -4,471,000 -1,010,000 -1,026,000 -1,458,000 164,000 1,020,000 771,000 272,000 Net change in cash 141,000 Cash at beginning of period 3,282,000 3,282,000 4,466,000 3,695,000 3,423,000 Cash at end of period 3,446,000 3,423,000 3,528,000 4,466,000 3,695,000 Free Cash Flow Operating Cash Flow 394,000 4,996,000 2,010,000 1,068,000 1,524,000 Capital Expenditure -273,000 1,060,000 -284,000 -216,000 -287,000 110,000 1,237,000 Free Cash Flow 3,936,000 1,737,000 852,000 Breakdown 8/31/2019 5/31/2019 2/28/2019 11/30/2018 TTM v Cash flows from operating acti... 1,101,000 847,000 Net Income 4,304,000 1,367,000 989,000 177,000 Depreciation & amortization 175,000 178,000 714,000 184,000 Deferred income taxes -26,000 -42,000 -33,000 56,000 -7,000 Stock based compensation 80,000 364,000 99,000 93,000 92,000 Change in working capital -1,235,000 -476,000 756,000 -367,000 370,000 190,000 Accounts receivable -432,000 -456,000 -136,000 -30,000 -270,000 Inventory -735,000 -264,000 37,000 -238,000 Accounts Payable Other working capital 3,936,000 110,000 1,737,000 852,000 1,237,000 Other non-cash items 4,996,000 Net cash provided by operatin-.. 394,000 2,010,000 1,068,000 1,524,000 v Cash flows from investing activi... Investments in property, plant a... -1,060,000 -284,000 -216,000 -287,000 -273,000 Acquisitions, net Purchases of investments -2,461,000 -504,000 -791,000 -553,000 -613,000 Sales/Maturities of investments 549,000 952,000 3,350,000 683,000 1,166,000 Other investing activites -109,000 -143,000 124,000 88,000 Net cash used for investing a. -279,000 -348,000 Cash flows from financing activ... Debt repayment 7,000 -10,000 -9,000 Common stock issued Common stock repurchased -3,925,000 -999,000 -881,000 768,000 1,277,000 Dividends Paid -345,000 -318,000 1,357,000 -346,000 -348,000 Other financing activites -18,000 -17,000 -6,000 Net cash used privided by (us-. 977,000 -4,471,000 -1,010,000 -1,026,000 -1,458,000 164,000 1,020,000 771,000 272,000 Net change in cash 141,000 Cash at beginning of period 3,282,000 3,282,000 4,466,000 3,695,000 3,423,000 Cash at end of period 3,446,000 3,423,000 3,528,000 4,466,000 3,695,000 Free Cash Flow Operating Cash Flow 394,000 4,996,000 2,010,000 1,068,000 1,524,000 Capital Expenditure -273,000 1,060,000 -284,000 -216,000 -287,000 110,000 1,237,000 Free Cash Flow 3,936,000 1,737,000 852,000

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