Executive summary In this report we focus on Nike’s Inc. Cost of Capital and its financial importance for the company and future investors. The management of Nike Inc. addresses issues both on top-line growth and operating performance. The company’s cost of capital is a critical element in such decisions and it is important to estimate precisely the weighted average cost of capital (WACC). In our analysis‚ we examine why WACC is important in decision making and we show how WACC for Nike Inc. is
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Nike Inc. held an analysts’ meeting to share their 2001 fiscal results and develop a strategy to revitalize the company. II. Background of Firm Nike’s revenues since 1997 had grown from $9 billion‚ while net income had fallen $220 million. A study written by Douglas Robson printed in Business Week revealed that Nike’s market share in the U.S. athletic shoe industry had fallen from 48 percent to 42 percent since 1997. In addition‚ supply-chain issues and the effects of a strong dollar negatively
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statements‚ so costs affect net profit of the company. In deciding whether to lease or purchase of the machine it is necessary to learn what each option‚ and the cash flows of the parameters to select will give the highest return of investment-related cash flow. Net present value (NPV) is used to decide whether to buy or lease of machines‚ and represents the cash flow associated with each option’s spreadsheet model to help. Here is the information considered by the management of the machine. Cost of machine:
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Scenario One: Cost Club Jenny Nelson May 25‚ 2015 University of Phoenix HRM/546 Thomas Kershaw Memorandum To: Pat Kershaw‚ Human Resources Manager‚ Atlanta Region From: Jenny Nelson‚ Assistant Human Resources Manager‚ Atlanta Region Date: May 25‚ 2015 Re: Five Region Wide Human Resource Concerns Ms. Kershaw‚ This memo is in response to the recent human resource issues that have occurred in the Atlanta region. You had emailed me and asked that I respond with the following. There are
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1. Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure? a. An increase in costs incurred when filing for bankruptcy. b. An increase in the corporate tax rate. c. An increase in the personal tax rate. d. None of the statements above is correct. ANSWER: B An increase in the corporate tax rate would mean that firms would get larger tax breaks for interest payments. Therefore‚ firms have an incentive to increase interest payments
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company uses a process cost accounting system. Its Assembly Department’s beginning inventory consisted of 50‚000 units‚ 3/4 complete with respect to direct labor and overhead. The department started and finished 127‚500 units this period. The ending inventory consists of 40‚000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24‚000 and overhead costs of $32‚000 for the
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Read the case “Zychol Chemicals Corporation” given below and concisely answer the questions that follow at the end of the case study. As a general guideline‚ please try to limit your answers to a paragraph or two for each of the questions. Bob Richards‚ the production manager of Zychol Chemicals‚ in Houston‚ Texas‚ is preparing his quarterly report‚ which is to include a productivity analysis for his department. One of the inputs is production data prepared by Sharon Walford‚ his operations
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"Acctg-320 group project 11-6 Pop’s Incorporated Variable Raw material cost Ingredient % of formula cost per liter of ingredient Carbonated Water 73.00% $0.08 $0.0584 High Fructose Corn Syrup 11.20% 0.49 0.0549 Sugar 6.30% 0.37 0.0233 Carmel Color 3.00% 1.40 0.0420 Phosphoric Acid 2.70% 0.10 0.0027 Caffeine 2.10% 0.12 0.0025 Citric Acid 1.10% 0.15
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to determine the weighted average cost of capital (WACC). This SLP calculates the WACC for my SLP company – McDonalds‚ discusses how those calculations were arrived at and briefly describes WACC and what investors use it for. COMPANY NAME: McDonalds Inc Balance sheet date: 31 DEC 07 Market values date: 1 SEP 08 SOURCE BOOK VALUE MARKET VALUE PROPORTIONS COST (%) PRODUCT (a) (b) (c) (d) (e)
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------------------------------------------------- Abstract: The case examines Marriott International’s (Marriott) various innovative HR practices‚ which earned it the reputation of being ’the best place to work’ in the hospitality industry. It describes Marriott’s ’Spirit to Serve’ culture and the company’s HR philosophy which guided its various HR initiatives. The case gives an overview of the best practices employed by the company in the recruitment‚ selection‚ training and development of employees
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