NikeCostOfCapital
BUS 443: SPRING 2015: MIDTERM EXAM 1. (
This question is based on the case
Nike, Inc.: Cost of Capital
)
Kimi Ford, a portfolio manager at Northpoint Group, is concerned about the veracity of a costofcapital analysis of Nike Inc. just completed by her assistant Joanna Cohen.
Consequently, Ms. Ford has hired you to take a fresh look at Nike’s cost of capital. Your assignment is to compile a memo to Kimi Ford in which you undertake a thorough estimation of Nike’s cost of capital, based on ‘Best Practices’. Make sure you clearly explain all calculations, and assumptions made, in your analysis. Ms. Ford also expects a high standard of presentation in your memo, suitable for forwarding to senior management.
(5 points)
2.
(This question is based on the
Victoria (Diamond) Chemicals cases A and B) James Fawn, executive vice president of the Intermediate Chemicals Group of Victoria
(Diamond) Chemicals PLC, has hired you to give clear guidance on the either/or decision of
Merseyside versus Rotterdam. He has the two reports already compiled by Frank Greystock and Elizabeth Eustace, but feels that the different length, breadth, and format of the two reports is the quintessential ‘applesversusoranges’. Consequently he has hired you to provide a thorough and balanced analysis of the two projects; leading to a clear recommendation. He also expects you to correct any errors, both of omission and commission, that may have afflicted the aforementioned analyses. He also wants you to make clear exactly what assumptions underlie your analysis, and why these assumptions are deemed most appropriate.
(15 points) Your answers should be posted on PL by
5pm, Friday, May 8
. Late submissions will be penalized. The assignment will be evaluated on both content and presentation. If you wish you may complete this assignment in a group of up to 3 people.
This question is based on the case
Nike, Inc.: Cost of Capital
)
Kimi Ford, a portfolio manager at Northpoint Group, is concerned about the veracity of a costofcapital analysis of Nike Inc. just completed by her assistant Joanna Cohen.
Consequently, Ms. Ford has hired you to take a fresh look at Nike’s cost of capital. Your assignment is to compile a memo to Kimi Ford in which you undertake a thorough estimation of Nike’s cost of capital, based on ‘Best Practices’. Make sure you clearly explain all calculations, and assumptions made, in your analysis. Ms. Ford also expects a high standard of presentation in your memo, suitable for forwarding to senior management.
(5 points)
2.
(This question is based on the
Victoria (Diamond) Chemicals cases A and B) James Fawn, executive vice president of the Intermediate Chemicals Group of Victoria
(Diamond) Chemicals PLC, has hired you to give clear guidance on the either/or decision of
Merseyside versus Rotterdam. He has the two reports already compiled by Frank Greystock and Elizabeth Eustace, but feels that the different length, breadth, and format of the two reports is the quintessential ‘applesversusoranges’. Consequently he has hired you to provide a thorough and balanced analysis of the two projects; leading to a clear recommendation. He also expects you to correct any errors, both of omission and commission, that may have afflicted the aforementioned analyses. He also wants you to make clear exactly what assumptions underlie your analysis, and why these assumptions are deemed most appropriate.
(15 points) Your answers should be posted on PL by
5pm, Friday, May 8
. Late submissions will be penalized. The assignment will be evaluated on both content and presentation. If you wish you may complete this assignment in a group of up to 3 people.