Hi,

I need help to do a powerpoint for the attached case. It should cover the following points and should be able to answer the questions at the bottom.

1. Introductory overview and background;

2. Statement of the problem, objectives, key issues;

3. Available alternatives/options to be considered;

4. Detailed analyses of the alternatives/options;

5. Recommendations and conclusions;

6. Value-added material (additional research is required to present further relevant information related to the case or topic(s) presented).

1. What is the WACC and why is it important to estimate a firm's cost of capital? What does it represent? Is the WACC set by investors or by managers?

2. Do you agree with Joanna Cohen's WACC calculation? Why or why not? If you do not agree with Cohen's analysis, calculate your own WACC for Nike and be prepared to justify your assumptions.

3. What mistakes did Joanna Cohen make in her analysis? Which method is best for calculating the cost of equity?

4. Calculate the costs of equity using the CAPM, the dividend discount model, bond-yield plus spread, and the earnings capitalization ratio. What are the advantages and disadvantages of each method?

5. What should Kimi Ford recommend regarding an investment in Nike? Please justify your answer.

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