In: Accounting
Suppose that in July 2013, Nike Inc. had sales of $ 25 comma 245 million, EBITDA of $ 3 comma 259 million, excess cash of $ 3 comma 333 million, $ 1 comma 395 million of debt, and 894.1 million shares outstanding. StartFraction Upper P Over Upper E EndFraction StartFraction Price Over Book EndFraction StartFraction Enterprise Value Over Sales EndFraction StartFraction Enterprise Value Over EBITDA EndFraction Average 29.84 2.44 1.12 9.76 Maximum plus136% plus70% plus55% plus86% Minimum minus62% minus63% minus48% minus34% a. Using the average enterprise value to sales multiple in the table above, estimate Nike's share price. b. What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in the table above? c. Using the average enterprise value to EBITDA multiple in the table above, estimate Nike's share price. d. What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in the table above?