Estimate Nike cost of capital

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Reference no: EM132182319

Question - You are provided with a Harvard Case UVA-F-1353: Nike's Cost of Capital.

(i) Using the method followed by Joanna Cohen, estimate Nike's cost of capital.

(ii) What mistakes did Joanna Cohen make in her analysis? Explain these mistakes in regard to estimation of the cost of debt, cost of equity and weighted average cost of capital.

(iii) Provide the correct estimate of Nike's cost of capital, justifying your methodology in estimating the cost of each type of capital.

Reference no: EM132182319

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