Joanna Cohen’s WACC calculation because she mistakenly used historical data to estimate the future cost of debt. Joanna calculated the cost of debt by taking the interest expense for 2001 and dividing it by the average debt balance. The cost of debt for Nike is the effective rate that it pays on its current debt‚ meaning the yield to maturity of bonds should be used to make an estimate instead of the average debt balance. Through the use of past data‚ the average balance of debt‚ the 4.3% before-tax cost
Premium Arithmetic mean Interest Stock
Nike‚ Inc.: Cost of Capital EXECUTIVE SUMMARY Kimi Ford‚ a portfolio manager of North Point Group a large mutual fund management firm‚ is looking into the viability of investing in the stocks of Nike for the fund that she manages. Ford should base her decision on data on the company which were disclosed in the 2001 fiscal reports. While Nike management addressed several issues that are causing the decrease in market sales and prices of stocks‚ management presented its plans to improve and
Premium Weighted average cost of capital Investment Finance
Globalization and Nike‚ Inc. Industry Overview The athletic footwear industry has experienced significant growth over the last two decades. Since 2001‚ consumers in the United States have spent more than $13 billion and have purchased over 300 million pair of athletic shoes. While the industry is highly segmented by sport category‚ models and price‚ a few large players dominate the branded shoe segment. The top ten-footwear companies control over 70 percent of the market share for global athletic
Premium World Trade Organization Athletic shoe International trade
Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports‚ the company focused on providing high-quality running shoes designed especially for athletes by athletes. Founder Philip Knight believed that high-tech shoes for runners could be manufactured at competitive prices if imported from abroad. The company’s commitment to designing innovative footwear for serious athletes helped it build a cult following among American consumers. By 1980‚ Nike had become the number-one athletic
Premium Nike, Inc.
MARKETING EXCELLENCE- NIKE The case explains how Nike successfully marketed it products by getting it endorsed through top athletes‚ who influence the buying decision of brands and products of others and created its brand image by associating the products with their persona. By signing the Michael Jordan and relating it air Jordan shoes to his superior performance ‚it generated great revenues in a year alone‚ and its “just do it” ad campaign manifested brand’s attitude of self-empowerment through
Premium Marketing Michael Jordan
Use the balance to determine the mass of the rectangular solid. Record the mass to the nearest 0.01 g in the data table. Volume: Use the metric ruler to measure the length‚ width‚ and height of the rectangular solid. Record these measurements to the nearest 0.1 cm in the data table. Calculate the volume using the following formula: Volume (cm3) = length (cm) x width (cm) x height (cm)
Premium Volume Length Periodic table
Lesson 3.01: History of the Periodic Table 1. Explain how scientific observations led to the development of‚ and changes to‚ the periodic table. Dmitri Mendeleev- first periodic table‚ organized 63 known elements according to properties‚ organized into rows and columns. He wrote names‚ mass and chemical properties on each. Julius lothar Meyer- independently worked in German ‚ similar to Mendeleev Henry Gwyn Jeffrey’s Moseley: worked with Ernest Rutherford experimented with 38 metals‚ he found that
Free Periodic table Atom
Two conditions for equilibrium are that the net force acting on the object is zero‚ and the net torque acting on the object is zero. In the experiment done‚ conditions for equilibrium are observed. Equilibrant forces were determined using the force table and component methods. The unknown forces were also determined using the first and second conditions for equilibrium. Another part of the experiment was to locate the center of gravity of a composite body and to determine rotational equilibrium.
Free Force Mass Torque
China is a country with 5000-years-long civilization and a long and rich history‚ so Chinese like to pay more attention to the etiquette‚ especially in the table manners. Most foreigners do not know table manners when they join in Chinese dinner party because Western dining is different with Chinese. Chinese table manners have three important parts‚ including place setting‚ taboos‚ and toast. Firstly‚ the seating arrangement is one of the important parts of dinning etiquette because the order of
Premium Left-handedness Table manners Left-wing politics
NIKE ANALYSIS The Weight Average Cost of Capital (WACC) is the firm’s cost of capital. We can think of WACC as an average representing the expected return on all of the companies’ securities. It is an extremely important number for both corporations and usually financials advisors. Corporations use this number as a minimum for evaluating their capital projects or investments. So if for example the WACC of a firm is 10% and the return on investing in a project is 4.5%‚ then the company would not
Premium Dividend yield Time value of money P/E ratio