During 2014, Nike’s common stock had been selling for between $73 and $96. Most recently, it was selling at $90 per share. Its most recent earnings per share was $3.50, and the firm was expected to pay a dividend of $1.12. The company’s return on equity (net income ÷ total common equity) has been 20 percent. You are planning on investing in 100 shares of the stock, but you want a 15 percent return on your investment.

Given the limited information, what growth rate would you estimate for Nike?

What minimum price would be required for you to earn your required return?