Generate a value-at-risk profile from given scenarios

Reference no: EM131491581

Question: Constructing a Value-at-Risk Profile: Nike Inc. (Medium) For fiscal year 2004, Nike reported after-tax core profit margins of7.84 percent on an asset turnover of2.759. An analyst forecasts that this margin and turnover will persist in the future on a sales growth rate of 5.1 percent per year. Nike reported $4,840 million of common equity and $4,55 1 million in net operating assets on it 2004 balance sheet. The risk-free rate is 4.5 percent and the required return for operations is 8.6 percent.

a. From this information, calculate the value per share at the end of2004 on 263.1 million shares outstanding.

b. Generate a value-at-risk profile from scenarios 1- 7 below:

Reference no: EM131491581

Questions Cloud

Consider in ethical decision making : What are 2-3 employment laws that an employer should consider in ethical decision making when an employee feels they have been treated unfairly.

The power of positive feedback : This week we are discussing the importance of positive feedback. Answer these questions:

What aspect of servant leadership might work for susan : analysis of the leadership issues unfolding by answering-what aspect of servant leadership might work for Susan given the context and examples presented in case

Hesitant to accept the report as presented : The report includes a major marketing activity designed by Student A to promote the new service package of a local company.

Generate a value-at-risk profile from given scenarios : Constructing a Value-at-Risk Profile: Nike Inc. (Medium) For fiscal year 2004, Nike reported after-tax core profit margins of7.84 percent on an asset turnover.

Supporting the organizational mission : Why do you think its important to engage new employees in supporting the organizational mission?

Discuss whether kit is a resident of australia : Discuss whether Kit is a resident of Australia and how his salary and investment income would be taxed (max. 1000 words).

Why is feedback essential for problem solving in any system : Define the term feedback. Why is feedback essential for problem solving in any system?

What is the standard deviation of portfolio : What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock T?

User Account

All Pages