Risk Free Rate 3% Market Return 8% ERP = Market return Rf = 5%...
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Accounting
Risk Free Rate 3%
Market Return 8%
ERP = Market return Rf = 5%
Perpetuity Growth Rates
Dividend Growth Rate 3%
FCFF Growth Rate 3%
FCFE Growth Rate 3%
Tax rate 20%.
1. Assuming that the market risk premium is 5% and the risk free rate is 3%. What is NIKE's weighted average cost of capital?
2. NIKE's P/E ratio using 2022 earnings per share estimate and current stock price is closest to: (Hint: check the stock price as of today)
3. Companies in the Footwear & Accessories Industry trade at an average P/E ratio of 35. NIKE's implied share price using 2022 earnings per share estimate is closest to?
4. What is the FCFF in 2024 if the marginal tax rate is 20%?
5. What is the present value of the discrete period FCFF?
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