Suppose that in July 2022, Nike Inc. had EBITDA of $6,673 million, excess cash of $13,039 million, $12,672 million of debt, and 1,454.3 million shares outstanding. a. Using the average enterprise value to EBITDA multiple from the table here, , estimate Nikeshare price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $ The lowest price will be $ (Round to the nearest cent.) (Round to the nearest cent.) Question Viewer

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 1FIC
icon
Related questions
Question

am. 134.

Suppose that in July 2022, Nike Inc. had EBITDA of $6,673 million, excess cash of $13,039 million, $12,672 million of debt, and 1,454.3 million shares outstanding.
a. Using the average enterprise value to EBITDA multiple from the table here, , estimate Nikeshare price.
b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?
a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price.
Nike's share price for this case will be $
(Round to the nearest cent.)
b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table?
The highest price will be $
The lowest price will be $
(Round to the nearest cent.)
(Round to the nearest cent.)
Question Viewer
Transcribed Image Text:Suppose that in July 2022, Nike Inc. had EBITDA of $6,673 million, excess cash of $13,039 million, $12,672 million of debt, and 1,454.3 million shares outstanding. a. Using the average enterprise value to EBITDA multiple from the table here, , estimate Nikeshare price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above? a. Using the average enterprise value to EBITDA multiple in the table, estimate Nike's share price. Nike's share price for this case will be $ (Round to the nearest cent.) b. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table? The highest price will be $ The lowest price will be $ (Round to the nearest cent.) (Round to the nearest cent.) Question Viewer
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage