Suppose that in July 2022, Nike had EPS of ($3.75) and a book value of equity of
Question:
Suppose that in July 2022, Nike had EPS of \($3.75\) and a book value of equity of \($9.72\) per share.
a. Using the average P/E multiple in Table 10.1, estimate Nike’s share price.
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 10.1?
c. Using the average price-to-book value multiple in Table 10.1, estimate Nike’s share price.
d. What range of share prices do you estimate based on the highest and lowest priceto-book value multiples in Table 10.1?
TABLE 10.1
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780137852581
6th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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