on its capital structure. In my opinion Ms. Ford has correctly assumed Nikes cost of debt and cost of equity. Her projection for cost of debt uses the Japanese yen notes ranging from 2.0%-4.3%. Since she used the higher range of 4.3%‚ that will eliminate any overly optimistic projections and should leave us with a realistic assumption. Some people can argue that she should of used the multiple costs of capital approach since Nike operates in many different sectors within the sporting apparel industry;
Premium Time value of money Weighted average cost of capital Interest
sculpture is Nike of Samothrace‚ now located in the Louvre museum in Paris. It is a demonstrative‚ and powerful sculpture which encapsulates everything great about Ancient Greece. The sculpture is made of Rhodian marble‚ stands 2.45 meters tall and 2.35 meters wide including its wings (Burn‚ 2004‚ p. 89). Nike’s sculptor is not well known‚ however it is presumed to have been constructed by the sculptor Pythokritos (Pollitt‚ 1986‚ p. 114) during the early second century BC. Discovering Nike was discovered
Premium Hellenistic civilization Louvre Nike
about anything for sneakers nowadays. Nike is a very well known shoe and athletic wear company. However‚ not many people know that Nike controls many sweatshops. Nike should not be allowed to pay people less than a living wage‚ make them work for an outrageous amount of hours‚ and under the present appalling laws and conditions. Violence and unfair conditions is not a solution to this crisis. After research‚ I believe I may not buy anymore stylish sneakers from Nike or any high end companies because
Premium Employment Minimum wage Wage
20-25 3. 25-35 4. 35-50 5. <50 Q2 How many pairs of sports shoes do you buy in a year on an average? A. 1 or none B. 2 C. 3 D. 4 E. > 4 Q3 Which brand of shoes do you prefer to buy? A. NIKE B. ADIDDAS C. OTHER (Specify)…………………………………… Q4 Out of the two brands which is your preferred brand for sporting products (other than shoes)? A. Nike B. Adidas Q5 Which brand products
Premium Nike, Inc. Brand Adidas
Nike Inc Case Analysis: Nike‚ Inc.: Cost of Capital Monica Mojica FIU Finance 6800 Professor Smith Fall 2011 Table of Contents Problem Statement…………………………………………………………………………… 3 Situation Analysis……………………………………………………………………………... 3 Major Strategic Alternatives…………………………………………………………………...3 Decision Criteria……………………………………………………………………………….. 4 Analysis of Alternatives ………………………………………………………………………
Premium Weighted average cost of capital Stock Stock market
Case: "Nike: The Sweatshop Debate" 1. Should Nike be held responsible for working conditions in foreign factories that it does not own‚ but where subcontractors make products for Nike? Yes‚ Nike is not only responsible but also accountable for the working conditions of foreign countries that it does not own. Nike should realize that it is a Global Organization and working globally does not only mean that taking advantage of low cost destination but also taking responsibility of the contractors/employees
Premium Wage Minimum wage Employment
Corporate Finance Nike‚ INC: Cost of capital 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? Definition of WACC (Weighted Average Cost of Capital): WACC is basically the average of the cost of finance (debt and equity). Since a company’s assets can be financed by debt or equity‚ WACC can show the averages of the costs involved in the sources of financing. These costs are then weighted
Premium Stock market Weighted average cost of capital Stock
Nike vs. Adidas: Constant Competition for Industry Dominance Every generation of man has seen sport as an integral part of the social order. From the ancient civilizations to contemporary society‚ humankind has recognized both the importance of the improvement and maintenance of physical fitness as well as the entertainment inherent in competition. A symbol of physical prowess‚ skill‚ determination‚ and discipline‚ the athlete has always held a revered place in society. Athletes‚ depending on the
Premium Nike, Inc. Athletic shoe Adidas
US Airline Industry – Porter’s Five Forces The year 2011 was another dismal one for US airlines in terms of financial performance. Despite an increase in both passenger numbers and revenues for the year‚ profits were down on 2010. In total‚ US airlines earned net profits of about $0.4 billion‚ representing a net margin of less than 1%. The dire financial state of the industry was underlined by AMR (the parent of American Airlines) entering Chapter 11 bankruptcy in November 2011. This ended AMR’s
Premium Airline Northwest Airlines Delta Air Lines
About Nike Case 6.1: How to Make Money (D) – Near Automatic Phil Knight and Bill Bowerman started their company with a vision of serving the athlete. That vision was shared by their first employees‚ who were committed to the company but who needed more detailed directions: They needed to know what was appropriate and what wasn’t when it came to conducting company activities. Knight responded by issuing a list of guiding principles at a crucial time in the company’s history. It was 1977‚ and the
Premium Bill Bowerman Nike, Inc. Adidas