Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of
Question:
Suppose that in May 2010, Nike had EPS of $3.51 and a book value of equity of $18.92 per share.
a. Using the average P/E multiple in Table 10.1, estimate Nike's share price.
b. What range of share prices do you estimate based on the highest and lowest P/E multiples in Table 10.1?
c. Using the average price-to-book value multiple in Table 10.1, estimate Nike's share price.
d. What range of share prices do you estimate based on the highest and lowest price-to-book value multiples in Table10.1?
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