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
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| NIKE‚ INC.: COST OF CAPITAL | | | | | | Introduction Our report aims to help Kimi Ford make a decision on her investment of Nike. We choose WACC as our method to estimate the cost of capital‚ which can be used as a discount rate to verify whether Nike is correctly valued in current market. We have mainly four steps to calculate WACC: I. Identify the type of cost of capital; II. Figure out the weights of debt and equity; III. Calculate the cost of debt and equity respectively;
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saycocorporativo.com/saycoUK/BIJ/journal/Vol1No1/article_7.pdf Ozeni‚ Ezekiel Profile: Nike Inc. retrieved September 26th‚ 2012 from http://in.reuters.com/finance/stocks/companyProfile?symbol=NKE.N NIKE‚ Inc FY 10-11 Sustainable Business Performance Summary. 2012. Retrieved September 26th‚ 2012 from http://nikeinc.com/news/nike-inc-introduces-new-targets-elevating-sustainable-innovation-within-business-strategy#/inline/10492 Nike‚ Inc
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difficult but not impossible; it just requires some hard thinking and some hard decisions. Where are the leaders with the vision to take up the challenge?"1_ The keywords in the above excerpt are "workers"‚ "solutions"‚ "leaders" and "challenge". Nike Inc.‚ the world _LEADER_ in the athletic footwear‚ apparel‚ equipment and accessories for sports and accessories for sports and fitness enthusiasts2‚ faces today the _CHALLENGE_ of finding appropriate _SOLUTIONS_ to the sweatshop conditions for the
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Nike + iPod User Guide KK Apple Inc. © 2010 Apple Inc. All rights reserved. Apple‚ the Apple logo‚ iPhone‚ iPod‚ iPod nano‚ iPod touch‚ and iTunes are trademarks of Apple Inc.‚ registered in the U.S. and other countries. Shuffle is a trademark of Apple Inc. iTunes Store is a service mark of Apple Inc.‚ registered in the U.S. and other countries. NIKE and the Swoosh Design are trademarks of NIKE‚ Inc. and its affiliates‚ and are used under license. The Nike + iPod Sport Kit is covered by one
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manager at NorthPoint Group has been tasked with analyzing Nike and coming up with a valuation for Nike so that her company can decide whether it is a good investment or not. She found that at a discount rate of 12% the company is overvalued‚ while with a slight decrease in the discount rate‚ to 11.7% the company is undervalued. In order to value the company correctly an accurate cost of capital must be estimated. Analysis An analysis of cost of capital is based on company financials as well
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in 2005 Nike returned to report its social and environmental practices. It said that staffs and employees work in a poor environment .Between 25% to 50% of its employees and staffs in the region restrict access to toilets and drinking water during the workday. Besides ‚ a lot of staffs have to work for extra hours per week and wage level is lower than other industries. These kind of social and environment issues not only happen in Nike ‚but also in many other industries. However ‚ Nike start to
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A Report on the Product/Services/Promotional Strategies Offered by Nike I visited the website of Nike‚ one of the most widely known sellers of athletic footwear‚ equipment and apparel in the world. The message that I got from Nike is “if you have a body‚ you are an athlete”. This is a very clever message because not only is the company trying to target athletes‚ they are targeting everyone in the whole entire world. Everyone has a body so everyone has the potential to be an athlete. This is
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Topic: Nike marketing strategy‚ social responsibility‚ and diversity. Specific Purpose: To inform my audience about the marketing strategy‚ environmental and social commitment and diversity of Nike company Brief: In my presentation‚ I will be talking about Nike’s marketing strategy and its social responsibility MARKETING A) INTRODUCTION § Preview – Because Nike’s success largely depends on its shrewd marketing strategy‚ I will be explaining to you the importance of marketing to Nike
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Nike Sweatshops Slavery or Opportunity? Nike-Helping the poor Thesis- In the past Nike has had problems with sweatshops‚ but the company is helping the poor and has changed in many ways. I. Problems A. Worker wages 1. How much they get paid 2. Can they fulfill their basic needs 3. Can they support a family B. Quality of environment 1. Conditions they live in 2. Type of protection they use against harm 3. Chemicals or solvents they used to make a product with II. Improvements A. Sweatshops
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