IF POSSIBLE, PLEASE UPLOAD THE EXCEL FILE WITH THE CALCULATIONS. THANK YOU

1. Choose a publicly traded company that has relatively simple and streamlined financial statements. Nike, Inc.

2. Look up Nikes most recent financial statements on at finance.yahoo.com. Based on the most recent balance sheet, what percentage of Nike, Inc. is debt-based and what percentage is equity-based?

3. Look up Nikes historical prices. Find the average annual return on the stock.

4. Find the interest expense on the income statement and divide by long-term debt. What does it look like Nikes interest rate on debt is?

5. Use your answer from #3 as cost of equity, your answer from #4 as cost of debt, and the percentages from part 2 as weights. What is the WACC?

6. Now calculate market capitalization as stock price multiplied by # shares outstanding.

7. Go to www.finra.org/marketdata and click the Bonds link. Find the bonds outstanding for Nike, Inc. How many different bond issues are out there and what are their yields? Calculated a weighted average of the different bonds YTMs. Also determine the total market value of the bonds outstanding.

8. Use market capitalization and the total market value of the bonds outstanding to find market-value based weights for WACC.

9. Download historical S&P 500 index values and find the average annual return on the S&P 500 (you can get this data from finance.yahoo.com). Look up current 30-day Treasury Bill rates. Use the average annual return from the S&P 500 as the expected return on the market, 30-day Treasury Bill rates as the risk-free rate, and Nikes beta to find cost of equity using CAPM.

10. Use your weighted average from #7 and your answer from #9,respectively, as cost of debt and cost of equity. Use the weights from #8. Calculate WACC.

11. Discuss the different values from #10 and #5. Which one do you think more accurately reflects Nikes cost of capital and why?