Please sole No. 3 using Excel. My issue stems from the capital expenditures

444.483,824,000 No. 3 Nike had sales of S25 3 bill then s f10% in 2013, but lowh i ar tothe long-run growth rate that is characterist f the apparel industry-5% 8. Based on Nike's past profitability and investment needs, you expect EBIT to be 10% of sales n in 2012. Suppose you expect its sales tug at a at increases in ngt working capital requirements to be 10% of any increase in sales, in capital expenditures to equal depreciation expenses. If Nike has $3.3 billion in cash, $1.2 billion in debt, 893.6 million shares outstanding, a tax rate of21%, and a weighted average cost ofcapital of 10%, a. What is your estimate of the value of Nike's stock in early 2013? (5 points) (Answer: 50.34) 36 B b. Suppose you believe Nike's initial revenue growth rate will be between 7% and 11% with growth always slowing linearly to 5% by year 2018). What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 46.89 to 51.53) Suppose you believe Nike's initial revenue EBIT margin will be between 9% and 1 1% of sales. What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 45.18 to 55.5) c Suppose you believe Nike's weighted average cost of capital is between 95% and 12%. What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 36.+4 to 55.75) d e. What range of stock prices is consistent if you vary the estimates as in parts (b). (e), and (d) simultaneously? (5 points) (Answer: 30.69 to 62.98) No. 4 Build a financial model on the following template. Assume that the WACC is 20%. Also assume the debt and equity remain the same. The FCF long-term growth rate is the same as the sales growth rate. (You may want to copy the table into Excel.) Sales growth Current assets/sales Current liabilities/Sales Net fixed assets/sales cost of goods sold/sales depreciation rate interest rate on debt interest paid on cash and marketable securities tax rate 10% 15% 8% 77% 50% 10% 10% 8% dividend payout ratio 40% 444.483,824,000 No. 3 Nike had sales of S25 3 bill then s f10% in 2013, but lowh i ar tothe long-run growth rate that is characterist f the apparel industry-5% 8. Based on Nike's past profitability and investment needs, you expect EBIT to be 10% of sales n in 2012. Suppose you expect its sales tug at a at increases in ngt working capital requirements to be 10% of any increase in sales, in capital expenditures to equal depreciation expenses. If Nike has $3.3 billion in cash, $1.2 billion in debt, 893.6 million shares outstanding, a tax rate of21%, and a weighted average cost ofcapital of 10%, a. What is your estimate of the value of Nike's stock in early 2013? (5 points) (Answer: 50.34) 36 B b. Suppose you believe Nike's initial revenue growth rate will be between 7% and 11% with growth always slowing linearly to 5% by year 2018). What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 46.89 to 51.53) Suppose you believe Nike's initial revenue EBIT margin will be between 9% and 1 1% of sales. What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 45.18 to 55.5) c Suppose you believe Nike's weighted average cost of capital is between 95% and 12%. What range of prices for Nike stock is consistent with these forecasts? (5 points) (Answer: 36.+4 to 55.75) d e. What range of stock prices is consistent if you vary the estimates as in parts (b). (e), and (d) simultaneously? (5 points) (Answer: 30.69 to 62.98) No. 4 Build a financial model on the following template. Assume that the WACC is 20%. Also assume the debt and equity remain the same. The FCF long-term growth rate is the same as the sales growth rate. (You may want to copy the table into Excel.) Sales growth Current assets/sales Current liabilities/Sales Net fixed assets/sales cost of goods sold/sales depreciation rate interest rate on debt interest paid on cash and marketable securities tax rate 10% 15% 8% 77% 50% 10% 10% 8% dividend payout ratio 40%