E5.13. Converting Analysts' Forecasts to 3 Valuation: Nike, Inc. (Medium) Nike reported book value per share of $15.93 at the end of its 2008 scal year. Analysts were forecasting earnings of $3.90 per share for 2009 and $4.45 for 2010, and were also forecasting a ve-year growth rate in EPS of 13 percent per year. Prepare a ve-year pro forma of earnings based on these forecasts and convert the forecasts to a valuation with the added forecast that residual earnings will grow at the GDP growth rate of 4 percent per year after 2013. Use a required return of [0 percent in your calculations. Table 5.2 in this chapter will help you. Nike traded at $60 per share at the time. Based on your calculations, do you think Nike is reasonably priced? What does your analysis tell you about the longrun growth rate that the market is forecasting for Nike