Treasury securities is good approximation

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Reference no: EM132018339

Determine the WACC for Nike Inc. using what you know about WACC as well as data you can find through research. it should be a brief report (2- 3 pages long) which states your determination of WACC, describe and justify how you determine the number and provide relevant information as to the sources of your data. A discussion of how much confident you are in your answer and the limiting assumptions you made. Use the following formula to determine WACC. As you recall, the formula for WACC is rWACC = (E / E + D) rE + D / (E + D) rD (1 - TC). The formula for the required return on a given equity investment is ri = rf + ?i * (RMkt - rf). RMkt - rf is the market risk premium. you may assume that the market risk premium is 4%, unless you can develop a better number. rf is the risk-free rate. The YTM on 10-year U.S. Treasury securities is a good approximation. You may assume a corporate tax rate of 40%.

Reference no: EM132018339

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