Assumptions:

Risk Free Rate $4\%$

Market Return $9\%$

ERP $=$ Market return $-$ Rf $=5\%$

Perpetuity Growth Rates

Dividend Growth Rate $3\%$

FCFF Growth Rate $3\%$

FCFE Growth Rate $3\%$

Tax rate $20\%.$

$1.$ What is the average annual expected growth rate in Sales between $2021$ and $2025?$

A $10\mathrm{.}4\%.$ B $6\mathrm{.}0\%.$ C $8\mathrm{.}3\%.$ D $9\mathrm{.}7\%.$

$2.$ Sales in $2023$ are expected to be:

A $$72,543$ million. B $$34,637$ million. C $$67,904$ million. D $ $52,156$ million.

$3.$ What is the average annual expected growth rate in Net Income between $2021$ and $2025?$

A $12\mathrm{.}45\%.$ B $16\mathrm{.}03\%.$ C $24\mathrm{.}62\%.$ D $8\mathrm{.}37\%.$

$4.$ Net Income in $2022$ are expected to be:

A $$4,372$ million. B $ $6,200$ million. C $$3,134$ million. D $$7,904$ million.

$5.$ The Change in Net Working Capital in year $2022$ is closes to:

A $$6,439$ million. B $$590$ million. C $$3,259$ million. D $$340$ million.

$6.$ Total capital expenditures for $2023$ is closes to:

A $$734$ million. B$$402$ million. C $$1,004$ million. D $$3,425$ million.

$9.$ The market has a $8$ percent expected rate of return and the risk free rate is $3\%.$

What is the market risk premium?

A $6\%.$ B $4\%.$ C $3\%.$ D $5\%.$

$10.$ The market has a $8$ percent expected rate of return and the risk free rate is $3\%.$

What is the required rate of return for NIKE using the CAPM?

A $5\mathrm{.}75\%.$ B $8\mathrm{.}75\%.$ C $4\mathrm{.}05\%.$ D $9\mathrm{.}25\%.$