analysis assumes Nike debt is trading at par – it is not ▪ Equity should be based on market value‚ not book value ▪ Hence total will be based on market cap.‚ not balance sheet ▪ Her debt cost is wrong ▪ She should use the current or projected cost rather than a historic one ▪ i.e. use a Bloomberg terminal (other terminals are available) to research yields on debt of the same credit rating as Nike ▪ It is unlikely Nike has a cost of
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NIKE‚ INC.: COST OF CAPITAL Professor Meiberger By Sebastian Gomez Team 5 Cohort: Front The portfolio manager for NorthPoint Group‚ Kimi Ford was deciding if she should pitch in and draw Nike within NorthPoint Large-Cap Fund. Nike‚ which did not have the strongest fiscal year results in 2001‚ was implementing new strategies to heighten its revenue and income. Kimi Ford‚ after having carefully read reports by analyst‚ and their input within this publicly traded company decided to emphasize
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present in Indonesia 3. Evidence of the “Dutch disease” 4. Institutions in Indonesia 5. Resource curse in Indonesia? And the risk of becoming an Authoritarian state. 6. Different types of contracts and Recommendation of a suitable contract for the firm. 1. Background * 2.1. Indonesia in brief Modern day Republic of Indonesia was formerly a Dutch colony since the 17th century. Indonesia was briefly occupied by Japan during the World War II. Although Indonesia declared
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Sarah smith 10/8/2013 Deontology and Utilitarianism There are two types of Deontology the first one is‚ one should act based on duty‚ and the second one is action should be based on the right intention and nothing else. Utilitarianism is when you have to think about the majority of the people no matter what the consequences is. It is based on maximizing happiness for everyone involved. I would favor Deontology because I think you should do your duty and only do what is right. If you have the
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Product: The product that I am choosing to write about is the Nike LunarGlide +3 running shoes. (a) List the typical stages of consumer buying process as discussed in the textbook. The typical stages of consumer buying process include need recognition‚ information search‚ the evaluation of alternatives‚ purchase decision‚ and post purchase behavior. Need recognition occurs when the buyer realizes they have a problem or need which is triggered by either internal or external stimuli. [1] The
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In the 2009 Afghanistan surge‚ the “bargaining paradigm”‚ defined by Allen ‚ best reflects President Obama’s decision making process by which he used the ethical lens of “deontology”‚ discussed by Shaw ‚ as the moral compass of his decisions. The war in Afghanistan started after the September 11th‚ 2001 attacks in the United States while President Bush was in office. President Obama was inaugurated as president on January 20th‚ 2009 and he picked up in the middle of a long war in Iraq and Afghanistan
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are only two economic systems that the market system and command system. Market economic system is also called the capitalist system. This system was originally used in the days of empire in England‚ the Netherlands‚ also in the days of empire in Indonesia used to be‚ for example‚ in the kingdom of Majapahit‚ Sriwijaya. At the time of this kingdom handed over to the private economy on the basis of demand and supply. In principle‚ the imperial never manage its economy. In the market or capitalist economic
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Founded in 1994‚ Nike Football has grown immensely to become one of the two market leaders in football apparel and footwear. Recognizing the vast opportunities the 2010 World Cup offers for their growth and differentiation from the competitors‚ they are considering a shift in their marketing strategy. Nike’s brand image is of an innovative company‚ focusing on the high performance of their products‚ while simultaneously offering extraordinary designs by partnering with many top-level footballers
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Consequentialism‚ Deontology‚ and Virtue Ethics The philosophies of consequentialism‚ deontology‚ and virtue ethics are guidelines for decision making that utilize very different theories of how an ethical dilemma should be approached. Consequentialism is a philosophy that asks whether or not the end justifies the means. “In other words‚ an act and therefore a decision is ethical if its favorable consequences outweigh its negative consequences” (Brooks‚ 2007‚ p. 329). Deontology‚ on the other hand
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we used market value based on the share price of Nike on July 5‚ 2001and number of shares outstanding‚ which resulted in the weights of debt and equity of 10.2% and 89.8% respectively (see Exhibit 2). Cost of Debt: Cost of debt was calculated by Ms. Cohen by finding the historical interest rate of 2.7% and tax rate of 38%. We agree with her estimation of the tax rate of 38%‚ but calculated a cost of debt of 7.17% based on the market price of Nike bonds and finding their yield to maturity (see Exhibit
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