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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(1+KD/2)40 + 3.375(1-0.38)/(1+KD/2)n KD=4.52% C6: Using WACC formula: Rwacc =4.52*10.19% + 8.89*89.81% = 8.44% C7: average dividend growth rate: g = [0+12.5++ 20+12+8]/4 %=8% (Assumption: In this calculation‚ the growth rates significantly higher than 20% and negative figure have been ignored.) C8: Using CAPM: KE’=3.2%+0.91*5.5%=8.21% C9: Using DGM formula: P’=D1/ (KE’-g) =1.06*(1+8%)/(8.21%-8%)=$545 In Nike’s case‚ when Joanna Cohen calculated the WACC of Nike‚ she made several mistakes and led to a wrong
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MAKE YOUR WEDDING DAY THE BEST DAY OF YOUR LIFE Because Music Connects To The Nerves Everything starts getting into its place as the wedding day comes closer. Perfect apparel collection‚ delicious food‚ the most exquisite place booked for your big day‚ but it just takes the whole preparation to another level when you can get the best music and that too of your choice. The wedding bands are the next big thing replacing DJs playing some random numbers while a lot of guests rush to the floor. DJs play
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“Keep Your Friends Close and Your Enemies Closer” When this country began we wanted our freedom‚ freedom from powers who would use us as slaves to there every whim. We fought for our rights as human beings‚ to have the pursuit of life‚ liberty and happiness. Over time the fight for this freedom widened to not only Americans but to all countries that fight against the clutching grip of imperialists and communism. To help out those who needed help the people of the government‚ who we give the power
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Nike Inc Case Analysis: Nike‚ Inc.: Cost of Capital Monica Mojica FIU Finance 6800 Professor Smith Fall 2011 Table of Contents Problem Statement…………………………………………………………………………… 3 Situation Analysis……………………………………………………………………………... 3 Major Strategic Alternatives…………………………………………………………………...3 Decision Criteria……………………………………………………………………………….. 4 Analysis of Alternatives ………………………………………………………………………
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Bangladesh‚ a country crisscrossed by rivers. Actually‚ the rivers of Bangladesh mark both the psychology of the nation and the life of the people. But‚ unfortunately‚ our memories of rivers are declining day by day. In this age of commercialisation we do not have enough time to pass a moment with rivers. Many of us struggle to recall our last memory of a river. The condition of most of the rivers is also very bad now. If we look back we will find that the state of our rivers has been worsening since
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Religion contributes to social order. Do you agree? By referring to any ONE (1) Caribbean religious grouping‚ show how its beliefs contribute to this feature of society. Relevant theoretical perspectives must be employed in the response. It is in my opinion that religion does contribute to social order. Religious beliefs of one sort or another exist is every known society all over the world. To really define religion you have to look at from either a functional definition or a substantive definition
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In the article‚ “You Love Your iPhone. Literally.”‚ author Martin Lindstorm‚ suggests that people have the same love for their iPhones as they do for a significant other. In Lindstorm’s experiment‚ he exposed 16 participants between the ages of 18 and 25 to separately watch and listen to a ringing and vibrating phone. He would then watch to see what parts of their brains would activate. Lindstorm found that if a person saw a visual of an iPhone vibrating‚ not only would that person’s visual cortex
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What do you think your professor thinks of the new generation of students? Well in the Article College Students Today: overconfident or just assured? Regardless‚ they are our future. By Corwin P. King was surprisingly both inaccurate and accurate about college life. In this article the Corwin King was explaining about how different the new generation of college students are now compared to the past college students are. In Corwin King article he explains who students now dot have the grit and respect
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Broadening Your Perspective 17-2 ACC/561 July 14‚2014 Monique Smalling Broadening Your Perspective 17-2 The idea for this example is to further explain Activity Based Costing and how it can help the Ideal Manufacturing Company keep its costs at the correct level. Activity based costing is defined as “An activity based costing (ABC) system recognizes the relationship between costs‚ activities and products‚ and through this relationship assigns indirect costs to products less arbitrarily than
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