Case Study –Nike‚ Inc.: Cost of Capital FIN202a-Spring 2011 1. Please define Weighted Average Cost of Capital (WACC). Write down the WACC formula‚ and discuss its components. WACC (Weighted Average Cost of Capital) is a market weighted average‚ at target leverage‚ of the cost of after tax debt and equity. It is a critical input for evaluating investment decision‚ and typically the discount rate for NPV calculation. And it serves as the benchmark for operating performance‚ relative to
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Apparently‚ the issue of Nike’s case is to control and check the calculation cost of capital done by Joanna Cohen who is the assistant of a portfolio manager at NorthPoint Group. But I am willing to tell you that it can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too. Because her assumptions such as Revenue Growth Rate‚ COGS / Sales‚ S &A / Sales‚ Current Assets / Sales‚ and Current Liability / Sales have been adopted from previous income
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Thermostats Storm Windows Total Sales Volume 800 220 500 1520 Sales Price 10 80 100 Sales Revenue 8000 17600 50000 75600 Variable Cost 8 70 95 Variable cost to Sales 6400 15400 47500 69300 Unit Contribution to Sales 2 10 5 Utilization of Capacity Total Variable Cost 6400 15400 47500 69300 Fixed Cost 27040 6760 16900 50700 Profit -25440 -4560 -14400 -44400 BEP (unit) 13520 676 3380 17576 CM ratio 0.2 0.125 0.05 BEP ($) 135200
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Essay Writing Category 4 (Individual): Essay Writing Age Group: Grades: 7- Grade 9 Topic: ‘Development of Renewable Energy Sources in the UAE’ As part of Language/Writing Class‚ ask your students to write an essay on the above topic. Did You Know? · The UAE is the first hydrocarbon country in the world to begin investing in renewable energy. · MASDAR City‚ in Abu Dhabi‚ is an emerging clean-technology cluster located in what aims to be one of the World’s
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hurdle rates is critical to accepting or rejecting projects‚ Marriott should be precise by calculating and using division-specific rates on division-specific projects. We used the WACC method so that our hurdle rates would reflect appropriate cost of debt and cost of equity‚ as explained in our subsequent analysis. We found Marriott’s hurdle rates: 8.646% for hotels‚ 10.94% for restaurants‚ 11.094% for contracts‚ and 9.688% for the entire company. Marriott should use the division-specific hurdle rates
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VOLUME 15‚ NUMBER 2 January 2008 AN IEER PUBLICATION Published on the Web as Énergie et Sécurité and No. 40 Nuclear Power Costs: High and Higher A BY ARJUN MAKHIJANI‚ Ph.D. 1 fter the spectacular crash of the 1950s propaganda of nuclear power that would be “too cheap to meter‚” evidenced in dozens of cancelled nuclear power plants because they were too costly to build or complete‚ there is a new push for nuclear power in the United States. Some advocates of a nuclear
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Midland Chemical Assignment Midland Chemical Co. is negotiating a loan from Manhattan Bank and Trust. The small chemical company needs to borrow $500‚000. The bank offers a rate of 8 ¼ percent with a 20 percent compensating balance requirement‚ or as an alternative‚ 9 ¾ percent with additional fees of $5‚500 to cover services the bank is providing. In either case the rate on the loan is floating (changes as the prime interest rate changes). The loan would be for one year. a. Which loan carries
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[pic] EnCana Corporation -Cost of Capital Nabil Naouli Yong Peng Ahmed Alenazi Raj Kancharapu Table of Contents 1. Introduction 2 2. History 2 a. Top Competitors 4 b. Major Product and Services 5 c. SWOT Analysis 5 3. Calculating Cost of Capital 6 a. Calculating Cost of Equity 7 i. Risk free rate 7 ii. Market Risk Premium 8 iii. Beta 8 b. Calculating Cost of Debt 9 c. Weighted Average Cost of Capital ( WACC ) 10 d. WACC- EnCana Corp. 2010 12 4. Discussion
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SP-3407 Renewable Energy Comparison of Renewable energy resources 1 Lecture Slides will be posted to the gmail site: sp3407re@gmail.com Password: SP123456 Created by Diane Chan (former UBD student) 2 Leading renewable energy resources 1 Wind Energy 2 Biomass Energy 3 Geothermal Energy 4 Hydro Energy 5 Solar Energy 3 Main Characteristics of Different Technologies[1] Category Biomass Conversion System Scale Range‚ MWe Efficiency‚ % Combustion/stand alone 20.0 – 100.0 20–40 (elect.)
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9-204-109 REV: OCTOBER 23‚ 2006 MIHIR DESAI Globalizing the Cost of Capital and Capital Budgeting at AES In June 2003‚ Rob Venerus‚ director of the newly created Corporate Analysis & Planning group at The AES Corporation‚ thumbed through the five-inch stack of financial results from subsidiaries and considered the breadth and scale of AES. In the 12 years since it had gone public‚ AES had become a leading independent supplier of electricity in the world with more than $33 billion in assets
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