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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Nike Case 1. Should Nike be held responsible for working conditions in foreign factories that it does not own‚ but where subcontractors make products for Nike? No‚ I do not believe Nike should be responsible for working conditions in foreign factories. I do believe that there should be working standards in place and adhered to but I do not believe that is Nike’s responsibility. Nike is a business in order to run a successful business one must abide by good business practices including respecting
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Oregon track coach and co-founder of Nike Bill Bowerman once said: “If you have a body‚ you are an athlete!” (Nike Inc.‚ n.d.) It is this way of thinking that describes the root of Nike’s approach to marketing. Every person is a potential athlete or “consumer”. This is a common thinking in the realm of athletics but when Bill Bowerman said this‚ it was in direct reference to the shoe industry. From their marketing strategies to their selling philosophies‚ Nike has developed one of the most recognizable
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Nike‚ Inc. is an American multinational corporation that is engaged in the design‚ development and worldwide marketing and selling of footwear‚ apparel‚ equipment‚ accessories and services. The company is headquartered near Beaverton‚ Oregon‚ in the Portland metropolitan area. It is the world’s leading supplier of athletic shoes and apparel[3] and a major manufacturer of sports equipment‚ with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31‚ 2012). As of 2012‚ it employed
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Nike CSR Corporate social responsibility can be defined as the "economic‚ legal‚ ethical‚ and discretionary expectations that society has of organisations at a given point in time" (Carroll and Buchholtz 2003‚ p. 36). The concept of corporate social responsibility means that organizations have moral‚ ethical‚ and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its
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Nike Nike is a major publicly traded clothing‚ footwear‚ sportswear‚ and equipment supplier based in the United States. It is one of the biggest companies in the world. It was not a big company at first‚ however‚ with its many strengths‚ it finally became a symbol of sportswear. * Strengths * Tailored to the needs of every athlete: “get all geared up” option on website takes you through a series of questions to find the perfect gear for you. * Personal: Through NIKEiD athletes are able
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Nike Ethics Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment‚ shoes to socks‚ and basketballs to golf balls. As a result of its massive success‚ Nike employs nearly 30‚000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other
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Nike has experienced many political and legal issues throughout its lifetime. From claims the company has used and continues to use sweatshops‚ to ties with terrorism‚ Nike has had a lot to overcome. These issues Nike has faced has shaped their current marketing strategies and led them to become one of the most recognizable brands in the world. The largest political issue Nike has faced was with regards to the sweatshop and child labor scandal. Nike began manufacturing in South Korea and Taiwan
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Nike Inc.‚ Cost of Capital Dr. Romer Finance 3613 By: Joseph White Michael Parker NorthPoint a mutual-fund-management firm is contemplating adding Nike Inc. stocks to its Large-Cap Fund. Kimi Ford a portfolio manager for NorthPoint has developed a discounted-cash-flow forecast to help make the decision. Kimi comes to the conclusion that Nike is overvalued at its current price of $42.09 with a 12 percent cost of capital that she estimated. To determine if her estimation is correct about
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Case Study Nike: The Sweatshop Debate MGT/448 November 2010 Case Study Nike: The Sweatshop Debate Nike was established in 1972 by Phil Knight. This marketing company is famous for their athletic shoes and apparels sold in some 140 countries (Hill‚ 2009‚ p. 154). Nike does not manufacturer any of these products they only design and market them. These products are manufactured in other countries such as Vietnam‚ Indonesia‚ and China‚ where the cost of labor is low. For years Nike has had repeated
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