What is wacc and why is it important to estimate a firms


In a Word document, please respond briefly and concisely to the following questions:

Nike Inc., Cost of Captial Case Study 15

What is WACC and why is it important to estimate a firm’s cost of capital?

Is the WACC set by managers or investors?

What mistakes did Joanna Cohen make in her analysis?

Which of the three methods she discusses in her memo – CAPM, DDM, or ECM -- is best for calculating the cost of equity? Why?

Based on a more accurate WACC, what should Kimi Ford recommend regarding an investment in Nike? (Hint: see below and complete the template first.)

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Financial Management: What is wacc and why is it important to estimate a firms
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