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This document summarizes the debt, equity, and valuation of a company. It reports $1.3 billion in total debt and $11.4 billion in total equity. It calculates a debt ratio of 7.99% and equity ratio of 92%. It then outlines the costs of debt and equity used to calculate a weighted average cost of capital of 9.38%. Finally, it presents a discounted cash flow valuation of $16.2 billion for the company's equity.

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131 views6 pages

Sex

This document summarizes the debt, equity, and valuation of a company. It reports $1.3 billion in total debt and $11.4 billion in total equity. It calculates a debt ratio of 7.99% and equity ratio of 92%. It then outlines the costs of debt and equity used to calculate a weighted average cost of capital of 9.38%. Finally, it presents a discounted cash flow valuation of $16.2 billion for the company's equity.

Uploaded by

piawsibolanjiao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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DEBT

Exhibit 3
Current Portion of Long-Term Debt $ 5.40
Notes Payable $ 855.30
Long Term Debt $ 435.80
TOTAL DEBT $ 1,296.50

CASH $ 304.00

NET DEBT $ 992,500,000.00

EQUITY
Exhibit 2
Current Shares Outstanding 271.5
Current Share Price $ 42.09
TOTAL EQUITY $ 11,427,435,000.00

Total Value $ 12,419,935,000.00


Debt Ratio 7.99118513905266%
Equity Ratio 92.00881486094740%
SEMI ANNUAL ANNUAL
Par Value -100 -100
Coupon Rate 6.75% 6.75%
Interest Payments Per Year 2 1
Interest Payment -3.375 -6.75
Number of Years to Maturity 20 20
Net Proceeds from Sale of Bond 95.6 95.6
BEFORE-TAX COST OF DEBT 3.5837239479813% 7.1708603734129%
0.071674479

Tax Rate 38% 38%

AFTER TAX COST OF DEBT 4.4438% 4.4459%


Current Yields on US Treasury 5.74%
Nike Historic Betas 0.69
Historical Equity Risk Premiums 5.90%
COST OF EQUITY 9.81100%
ANNUAL SEMI-ANNUAL
Debt Ratio 7.99118513905266% 7.99118513905266%
Equity Ratio 92.00881486094740% 92.00881486094740%
After-Tax Cost of Debt 4.44593343151599% 4.44381769549681%
Cost of Equity 9.81% 9.81%

WACC 9.3822675976790200% 9.3820985252966800%


Year 2002 2003 2004
1 2 3
PRESENT CASH FLOW 764.1 663.1 777.6
TERMINAL VALUE
TOTAL CASH FLOWS 764.10 663.10 777.60
WACC 9.3822675976790200%
Present Value Cash Flows 698.5592973904 554.2238144 594.1765182

DCF VALUATION 16164.4168644532


Less: Outstanding Debt -1296.6
Equity Value 14867.8168644532
Current Shares Outstanding 271.5
Equity Value Per Share 54.7617564068 Current Share Price
2005 2006 2007 2008 2009 2010 2011
4 5 6 7 8 9 10
866.2 1014 117.6 1275.2 1351.7 1483.7 1572.7
25380.96335
866.20 1,014.00 117.60 1,275.20 1,351.70 1,483.70 26,953.66

605.1046489 647.5947848 68.66347627 680.6907466 659.6368879 661.9478783 10993.81881

rrent Share Price 42.09

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