Executive Summary Wanting to add Nike’s share to her portfolio‚ Kimi Ford asked her new assistant‚ Joanna Cohen‚ to estimate Nike’s cost of capital. Cohen‚ later‚ came up with the cost of capital of 8.4% that was contradicted to Ford’s cost of capital of 12%. This report points out flaws of Cohen’s assumption and recalculates the WACC to obtain the most accurate cost of capital. In the cost of equity calculation‚ we will use CAPM‚ the dividend discount model (DDM)‚ and the earnings capitalization
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Edudemic writer Jeff Dunn recently wrote an article about a technology bus that is making headlines at a middle school in Mississippi. This bus‚ sponsored by the tech-ed company Promethean‚ is a vehicle filled with products that enrich the classroom through the latest technology tools‚ gadgets‚ and software. While it may be a smart marketing tool for tech companies‚ is technology bulldozing its way into the classroom? Traditional Schools Are Way Behind to Begin With Technological advancements
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Mini Case: Nike’s Decision Nike‚ a U.S.-based company with a globally recognized brand name‚ manufactures athletic shoes in such Asian developing countries as China‚ Indonesia‚ and Vietnam using subcontractors‚ and sells the products in the U.S. and foreign markets. The company has no production facilities in the United States. In each of those Asian countries where Nike has production facilities‚ the rates of unemployment and underemployment are quite high. The wage rate is very low in those
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Nike has been accused of using child labor in the production of its soccer balls and shoes for Nike in Pakistan. While Pakistan has laws against child labor‚ the government has taken very little action to terminate it. It is said that only a boycott by the United States and other nations will have any impact on child-based industries. In addition‚ the U.S constitution states that child labor is an illegal and inhumane practice and any U.S. company found guilty practicing and encouraging it will
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594 Total current assets 11‚531 11‚297 b. What method does the company use to value inventory? The Notes indicate that NIKE uses “last in first out‚” or LIFO‚ for domestic inventories and “first in first out‚” or FIFO‚ for international inventories c. What depreciation method does the company use? The Notes indicate that NIKE uses the straight line method for buildings and leasehold improvements and the declining balance method for machinery and equipment. As with the
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step is required to validate your compliance with sections 107 or 108 of the 1976 United States Copyright Act. 1. Remove the front cover of the workbook and identify: Student Name: Jackeline S. Gonzalez | Term: | Selected Company: NIKE Inc. | Instructor: | 2. Print your completed electronic template. 3. Attach the following: * This page completed with all required information. * Completed Word template. Template boxes expand as you input responses
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opened their first sport shoes shop. As former university track runners and coach‚ they were seeking to innovate in running shoes to give athletes a competitive advantage. In 1971‚ their first employee Jeff Johnson designed several shoes and started advertising the new brand that he called “Nike”. Co-founder Bill Bowerman’s philosophy is today’s vision of the company: “To bring inspiration and innovation to every athlete* in the world. (*And if you have a body‚ you are an athlete.) ». Mark
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This was disruptive innovation at its most relatable fineness‚ evolving from a simple online bookseller‚ to the Amazon with the $140 billion market value we know today. Undeniably‚ a pushing factor of development is the innovative founder of Amazon‚ Jeff Bezos. Bezos has initiated a notoriously confrontational interaction culture within the core of his company. In the instance of one oversight in e-mail marketing‚ Bezos threatened to shut down the whole channel: “We can build a $100 billion company
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Do you think the criticism of Nike is fair‚ considering that the host countries are in dire needs of creating jobs?Yes and no. In a pure capitalist economic system employers will seek to pay workers as little in cash and benefits as possible and will locate his plant in the location that incurs the least cost. That being said there is a certain moral consideration to pay a wage that allows the worker to reasonably support themselves and their dependents. Lastly you should consider Henry Ford’s Famous
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to Kimi about Nike’s WACC‚ she calculated it to be 8.3%. She also provided some assumptions she made while developing this WACC. First‚ she noted that she decided to use a single cost of capital because she did not believe that other segments with Nike were large enough to make a considerable difference on the weights. She determined that Nike’s segments also did not have a significant difference in risk to justify using a multiple cost of capital. We agreed with Joanna and also used a single segment
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