Summary of Nike Case 张朦 袁潇 钟毅 张希圆 Nike is nowadays one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment accessories and services. In 2001‚ Nike’s share price declined to $42.09 on July 5. The unexpected fall in share price captures the NorthPoint Large-Cap Fund’s attention. The fund manager of this mutual fund‚ Kimi Ford‚ concerns whether it is the time to put Nike into the portfolio. On July 5‚ 2001‚ Nike discloses its fiscal year
Premium Stock market Stock
Nike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital‚ which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When the
Premium Stock Weighted average cost of capital Stock market
“On January 25‚ 1964 Nike‚ formerly known as Blue Ribbon Sports was founded by Bill Bowerman and Phillip Knight. It officially became Nike Incorporated on May 30‚ 1978”(Nike Business). During the late 70s to early 80s Nike’s initial focus was Track and Field but later expanded into various sports such as : soccer‚ golf‚ hockey and basketball just to name a few.” In 1980‚ Nike entered the decade on the success of its Nike Air technology‚ and at the end of that year Nike completed its initial public
Premium Nike, Inc. Bill Bowerman
I. Introduction Kimi Ford‚ a portfolio manager for the mutual-fund management group NorthPoint‚ was reviewing the financials of Nike Inc. to consider buying shares for the NorthPoint Large-Cap Fund that she managed. A week prior‚ Nike Inc. held an analysts’ meeting to share their 2001 fiscal results and develop a strategy to revitalize the company. II. Background of Firm Nike’s revenues since 1997 had grown from $9 billion‚ while net income had fallen $220 million. A study written by Douglas
Premium Weighted average cost of capital Arithmetic mean Stock
|Corporate Finance | |Nike Case | | | | |
Premium Weighted average cost of capital Stock Stock market
Nike‚ Inc.: Cost of Capital Case 15 Financial Administration FINC 5713-180 Team 1 Fall 2013. October 8‚ 2013. Introduction Kimi Ford a portfolio manager at NorthPoint Group which is a mutual-fund management firm‚ is considering to buy some shares from Nike‚ inc even if it’s share price had declined from the beginning of the year‚ for the Northpoint Large-cap fund she managed which invested mostly in Fortune 500 companies and it was doing well despite the decline
Premium Stock market Weighted average cost of capital Stock
Nike‚ Inc Cost of Capital NorthPoint Large Cap Fund was considering whether to buy Nike’s stock or not. Nike was experiencing declines in sales growth‚ declines in profits and market share. However‚ Nike decided it would increase exposure in mid-price footwear and apparel lines‚ and it also commits to cut down expenses. The market responded with mixed signals to Nike’s changes. Kimi Ford‚ the portfolio manager at NorthPoint‚ did a cash flow estimation‚ and ask her assistant‚ Joanna Cohen to estimate
Premium Financial markets Investment Mathematics
this report we focus on Nike’s Inc. Cost of Capital and its financial importance for the company and future investors. The management of Nike Inc. addresses issues both on top-line growth and operating performance. The company’s cost of capital is a critical element in such decisions and it is important to estimate precisely the weighted average cost of capital (WACC). In our analysis‚ we examine why WACC is important in decision making and we show how WACC for Nike Inc. is calculated correctly. Also
Premium Weighted average cost of capital Arithmetic mean Mathematics
Kimi Ford is a portfolio manager at NorthPoint Group‚ a mutual-fund management firm. She is evaluating Nike‚ Inc. (“Nike”) to potentially buy shares of their stock for the fund she manages‚ the NorthPoint Large-Cap Fund. This fund mostly invests in Fortune 500 companies‚ with an emphasis on value investing. This Fund has performed well over the last 18 months despite the decline in the stock market. Ford has done a significant amount of research through analysts’ reports‚ which had mixed
Premium Management Learning German language
SOLUTION TO NIKE REBOUND * Strengthening the global supply chain. Technology companies are more dependent on oversea suppliers than ever. In fact supply chain interruptions are one of the biggest risks today and obtain result in significant productivity and revenue losses. The management of Nike rebound should learn how to build resiliency into their supply chain .Despite the fact Nike rebound have undergone into supply chain disaster” supply chain management” is network that is involved buying
Premium Management Marketing Supply chain management