Ross Spring 2020

1.) What is WACC? Why is it important to estimate a firm’s cost of capital?
2.) Do you agree with Joanna Cohen’s WACC calculations? Why or why not?
3.) If you do not agree, calculate your own WACC for NIKE and briefly justify your assumptions.
4.) Calculate the cost of equity using CAPM and the dividend discount model (DDM).
5.) What should Kimi Ford recommend regarding an investment in Nike?