Graduate School of Business Administration University Version 2.0 of Virginia UVA-F-1353 Version 2.0 Nike‚ Inc.: Cost of Capital On July 5‚ 2001‚ Kimi Ford‚ a portfolio manager at NorthPoint Group‚ a mutual fund management firm‚ pored over analyst write-ups of Nike‚ Inc.‚ the athletic shoe manufacturer. Nike’s share price had declined significantly from the start of the year. Kimi was considering buying some shares for the fund she managed‚ the NorthPoint Large-Cap Fund‚ which invested mostly in
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Matthew Selle Professor Li Global Business Project Spring 2012 Nike We decided to choose Nike as our company for this global business project. Nike is ranked 135 in the fortune 500-company list. Nike is the number one sports shoe company in the United States. In the US Nike dominates 35 percent of the sports shoe market‚ it also holds one of the most recognizable logos in the world‚ the Nike Swoosh. The majority of Nikes customers‚ over 50% purchase their merchandise for things other than sporting
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strategies of sport companies for Nike and Adidas. Introduction My area of study for this project would be more on comparing the performances for Nike and Adidas for the past 5 years. In this project I would explain the performance such as growth in profits‚ revenues‚ market share‚ the company employers and employees‚ size of the market share‚ steps for increasing the social performance‚ products performance‚ dividends per share‚ assets and the company investment. Nike and Adidas and have been the top
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Environmental Scanning The environment is responsible for more company changes that the general public often realizes. The future of a company depends on the reaction that the company has to environmental changes. By not adapting to the changes‚ companies could ultimately end up failing. Recognizing that the environment is changing‚ businesses need to be able to adapt their products to keep up with new opportunities and balance a strategic fit between the environment and the company (Wheelen
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Nike Case – Spreading out to stay together 1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez‚ he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadershipof Nike? Answer: Informal structures are the shadow organization that represents the actualworking and communication relationships that may not resemble the formal organizationalchart
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GYAAN KOSH TERM 1 Learning and Development Council‚ CAC Managerial Economics This document covers the basic concepts of Managerial Economics covered in Term 1. The document only summarizes the main concepts and is not intended to be an instructive material on the subject. Gyaan Kosh Term 1 MGEC Learning & Development Council‚ CAC Opportunity cost: Taken into account for economic decisions. Opportunity Cost is the “next best” or “alternative” benefit from an investment Sunk costs:
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‘unethical’ by media who construe this view to consumers. Such allegations can and will have damaging effects with Nike having been taken to court already in the past. 2. Would the use of third-party independent contractors insulate MNCs from being attacked? Would that practice offer MNCs a good defensive shield against charges of abuse of “their employees”? • Not necessarily‚ as Nike will be using labour which is just managed by another party. They would just be shifting the blame of abusing “their
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In order to understand the Nike system’s effectiveness in defending the US‚ the hostile actions and aerial strength of the USSR must be put into context. The main reason for the creation of the Nike missile system was to defend and deter the rapid technological advances of the USSR. After World War II‚ the USSR was able to acquire German scientists that had been working on the infamous V-2 rockets‚ as well as nuclear research. In addition‚ the USSR was also able to acquire some of the US’s bombers
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Noonan CREATING A BRIEF – NIKE CREATING A BRIEF – NIKE TABLE OF CONTENTS INTRODUCTION 2 Purpose 1.1 3 limitstions 1.2 3 summary key points 1.3 governance and methodologies 1.4 4 source 1.5 4‚5 NIke lighting shoes campaign 2 5 Section 2.1 6 Section 2.2 6 Section 2.3 6 Section 2.4 7 Section 2.5 7 Section 2.6 7 Section 2.7 7 Section 2.8 7 Section 2.9 8 Section 2.10 8 Section 2.11 8 Section 2.12 9 Section 2.13 9 Section 2.14 11 conclusion 3 11 references 11 EXCUTIVE SUMMARY NIKE requires an advertising
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were good‚ I think that there were some that she could have used different numbers and rates to come up with more accurate numbers. WACC=(E/(D+E)) Ke + (D/(D+E)) Kd (1-t) 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and be prepared to justify your assumptions Cost of debt-based on yield to maturity PMT= 100(.0675)=6.75 N= 20 (2)=40 FV= 100 PV= 95.6 I/Y= computed on calculator=7.0832(semiannually) 7.0832(2)=14.166% annually COST OF EQUITY Cost of
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