Nike had sales of $25.3 million in 2012.

Nike had sales of $25.3 million in 2012. suppose you expect its sales to grow at a rate of 10

% in 2013, but then slow by 1% per year to the long-run growth rate that is characteristic of the apparel industry-5%-by 2018. 

Based on Nike's past profitabiloity and investment needs, you expect EBIT to be 10% of sales, increases in net working capital requirements to be 10% of any increase in sales, and capital expenditures to equal depreciation expenses.

If Nike has $3.3 million cash, $1.2 million in debt. 893.6 million shares outstanding, a tax rate of 24%, and a weighted average cost of capital of 10%, what is your estimate of the value of Nike stock in early 2013?

What if Nike's EBIT was assumed to be 10% of sales. If Nike can reduce its operating expenses and raise its EBIT to 11% of sales, how would the estimate of the stock's value change? and why does a 1% permanent change in its margins affect the firm's stock price by 10%?

Growth in salesEBITIncrease in NWCTax rateDebtNumber of shares outstandingCashCost of capitalYearFCF Forecast ($ thousand)SalesGrowthEBIT(10%of sales)Less: Income tax(24%)Plus:...