Krispy Kreme
Nike, Inc
Case 15
Team 3
A Case Brief Submitted to
Dr. Patin
Professor of Finance
Submitted by
In Partial Fulfillment of the Requirements for
Advanced Issues in Corporate Finance
FINC 4753, Section 201
Midwestern State University
Dillard College of Business Administration
Spring 2014
Date Submitted
03/10/2014
Table of Context
General Information ……………………………………………… Page 3-4
Cohen Figures …………………………………………………….. Page 4-5
My Calculations ………………………………………………… Page 5
Recommendation………………………………………………….. Page
Conclusion…………………………………………………………. Page
Graphs…………………………………………………………….. Page
CASE 15: Nike, Inc.
The Nike, Inc. case helps demonstrate the importance to WACC and how it helps decided which type of investments should and should not be taken. In this paper a couple of key problem are going to be answered. These problems occur with the figures that Kimi Ford’s assistant, Joanna Cohen, calculated and gave her in order for Ford to make her decision on rather or not she should invest in Nike, Inc. stock.
General Information about Problem: On July 5, 2001, Kimi Ford, a portfolio manager of North Point Group, examined analysts' write-ups of Nike, Inc. Ford was studying the write up to determine if she should invest in Nike or not. Ford noticed that Nike's share price had declined significantly from the beginning of the year (Table 1). While the stock market had declined over the last 18 months, the North Point Large-Cap Fund had performed extremely well. In 2000, the fund earned a return of 20.7%, even as the .S&P 500 fell 10.1 %. By the end of June 2001 the fund's year-to-date returns stood at 6.4% versus -7.3% for the S&P 500. Ford wants to continue the positive tread of North Point Group and thus she must look at the profitability Nike, Inc. stocks have. Due to the inconsistancy of the analysiss Ford had Cohen do her own analysis of Nike, Inc..
Nike’s General Information: Nike was
Case 15
Team 3
A Case Brief Submitted to
Dr. Patin
Professor of Finance
Submitted by
In Partial Fulfillment of the Requirements for
Advanced Issues in Corporate Finance
FINC 4753, Section 201
Midwestern State University
Dillard College of Business Administration
Spring 2014
Date Submitted
03/10/2014
Table of Context
General Information ……………………………………………… Page 3-4
Cohen Figures …………………………………………………….. Page 4-5
My Calculations ………………………………………………… Page 5
Recommendation………………………………………………….. Page
Conclusion…………………………………………………………. Page
Graphs…………………………………………………………….. Page
CASE 15: Nike, Inc.
The Nike, Inc. case helps demonstrate the importance to WACC and how it helps decided which type of investments should and should not be taken. In this paper a couple of key problem are going to be answered. These problems occur with the figures that Kimi Ford’s assistant, Joanna Cohen, calculated and gave her in order for Ford to make her decision on rather or not she should invest in Nike, Inc. stock.
General Information about Problem: On July 5, 2001, Kimi Ford, a portfolio manager of North Point Group, examined analysts' write-ups of Nike, Inc. Ford was studying the write up to determine if she should invest in Nike or not. Ford noticed that Nike's share price had declined significantly from the beginning of the year (Table 1). While the stock market had declined over the last 18 months, the North Point Large-Cap Fund had performed extremely well. In 2000, the fund earned a return of 20.7%, even as the .S&P 500 fell 10.1 %. By the end of June 2001 the fund's year-to-date returns stood at 6.4% versus -7.3% for the S&P 500. Ford wants to continue the positive tread of North Point Group and thus she must look at the profitability Nike, Inc. stocks have. Due to the inconsistancy of the analysiss Ford had Cohen do her own analysis of Nike, Inc..
Nike’s General Information: Nike was