question archive You are provided with a Harvard Case UVA-F-1353: Nike's Cost of Capital
You are provided with a Harvard Case UVA-F-1353: Nike's Cost of Capital
Subject:FinancePrice: Bought3
You are provided with a Harvard Case UVA-F-1353: Nike's Cost of Capital.
(i) How did Joanna Cohen estimate Nike's the weighted average cost of capital? Explain all the steps and assumption she made to estimate each component of Nike's WACC.
(ii) What mistakes did Joanna Cohen make in her analysis? Identify the mistakes regarding the estimation of cost of debt, cost of equity and WACC.
What is the correct estimate of Nike's WACC? Justify the methodology you use for estimating the cost of debt, the cost of equity, the weight of debt and equity and WACC.
