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

Nike, Inc Cost of Capital

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

2. Do you agree with Joanna’s WACC calculation? Why or why not?

3. If you do not agree with Joanna’s calculation, calculate your own WACC and justify your analysis.

4. What would you recommend regarding the valuation of Nike?