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 is criticized for using sweatshops in countries like Indonesia and Mexico. The company has been subject to much critical coverage of the often poor working conditions and the exploitativeness of the cheap overseas labor." answers.com 1. Should Nike be held responsible for working conditions in foreign factories that it does not own‚ but where sub-contractors make product for Nike? Yes‚ but I do not believe that the firm is 100% responsible since it is the sub-contractors who operate
Premium Industrial Revolution Factory Sweatshop
Case Report - Nike Introduction Many of us know Nike for the clever maketing campaigns‚ celebrity athelets‚ "swoosh" logo‚ and "Just Do It!" slogan. In 1963 the world’s largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake‚ and today has over $9 billion in revenues. After several years of record breaking performance Nike’s global labor practices were brought to the attention of the public as early as the 1990s. Which included publishings
Premium Nike, Inc. Sweatshop Shoe
Jordan Hirsch AF 495 October 18‚ 2012 Nike Executive Summary Executive summary In this report I will 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 my analysis‚ I will examine
Premium Weighted average cost of capital Mathematics Stock
Introduction This paper is a based on a case study of Nike. The paper will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization‚ the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors‚ which are going to address or going to be
Premium Ethics
Amanda Merkatz Management 301-02 Case Study 11 11252895 1. How does Nike’s decision to retain an in-house arm of ad agency Wieden & Kennedy exemplify the concept of organizational design? The decision to retain an in-house arm of ad agency exemplify the concept of organizational design‚ makes you look at how both companies interpret organizational design. Organizational design is the process of creating structures that accomplish the company’s missions and objectives. First looking at the text
Premium Advertising Graphic design Sweatshop
In this day and age‚ multinational corporations control the market‚ the time of the local taylor and mom-and pop stores are over. While these companies sell goods in 1st world countries‚ their produce comes from sweatshops primarily in developing nations. Sweatshops are not legal; they are defined by the US Department of Labor as factories that violates 2 or more labor laws. The government of these third world countries and the corporations are at fault. While they line their pockets‚ their workers
Premium Sweatshop Corporation Third World
Sandi Wodarczak BA206 – Nike Case Study Due: February 16‚ 2011 Nike: Spreading Out to Stay Together Informal structures are thought to be good during times of change‚ but can be the cause for big problems during change. When an outsider is brought into an informal structure‚ operating under a matrix‚ there may be friction as the outsider never really gets to be an insider. I think this is what happened with Perez. Perez was the outsider brought in to take over for the insider‚ Knight
Premium Organizational structure Adidas Nike, Inc.
Case Study: Nike and the Sweatshop Debate Case Study: Nike and the Sweatshop Debate The Nike brand is a household name that most individuals are familiar with. The Nike Corporation is approximately worth 10.7 Billion making this the largest and most profitable sporting brand in the entire world. Nike salesman has taken over the majority of sports teams and led the sportswear market for innovation and conformity. The mission statement is “To bring inspiration and innovation to every athlete
Premium Federal government of the United States Third World Law
Corporation Case Study: Nike What is it? NIKE‚ Inc. is the world’s leading innovator in athletic footwear‚ apparel‚ equipment and accessories. Before there was the Swoosh‚ before there was Nike‚ there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry. Nike Employees Nike Employee Networks are designed to help Nike move toward greater diversity. In the U.S.‚ six employee networks focus attention on important communities within Nike. The intended
Premium Marketing Strategic management Management