Question: Box 16.4 in this chapter values Nike's shares using residual operating income methods. a. Modify the proforma in Box 16.4 to forecast abnormal operating income

Box 16.4 in this chapter values Nike's shares using residual operating income methods.

a. Modify the proforma in Box 16.4 to forecast abnormal operating income growth, and value the shares from these forecasts.

b. Apply the simple forecast model (equation 15.5 in Chapter 15) that combines short-term and long-term growth rates. Box 15.4 will help you.

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a 2005 2006 2007 2008 2009 2010 ReOI 86 charge 7836 8547 6760 6086 6634 6966 Abnormal OI Growth ReOI ... View full answer

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