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
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SWEATSHOPS: UNLOCKING THE POWER OF POVERTY Introduction How should Global Corporations behave in a period of Globalisation filled with International competitors and cheap imitators? It has been argued that such competitive pressure is likely to create new lows in global labour standards. In an attempt to remain competitive‚ Corporations cut costs by paying lower wages‚ hiring child labour‚ and imposing unsanitary working conditions on their workers. From this perspective‚ globalization is
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holistic outcome for all parties involved. The issues that explore and reflect the role of discretion within our criminal justice system are police discretion‚ charge negotiation and judicial discretion in sentencing. The first aspect of the legal system in which discretion is used is in the powers given to police in the criminal investigative process. The responsibility of enforcing criminal always and ensuring they are adhered to lies with the police in the prevention and detection of crime
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Structuring the Research Paper Formal Research Structure For emphasis‚ the primary purposes for formal research are repeated here: • find and understand raw data and information • enter the discourse‚ or conversation‚ of other writers and scholars in your field • learn how others in your field use primary and secondary resources For the formal or primary academic research assignment‚ where you will take your place in the scholarly conversation‚ consider an organizational pattern typically used
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Nivea Case 1. What is the market’s perception of the Nivea family brand on each of the a ollowing dimensions? a. Performance Nivea decided to create a family of products that symbolically could be represented as the “Nivea universe”. The company had a “mono-product” philosophy which means there would be only one product promising consumers universal application in each product category. b. Imagery Early ads established the image of the Nivea woman as
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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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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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Nike Annual Report Analysis In January of 1964 Phillip Knight a University of Oregon track athlete and Bill Bowerman‚ Knight’s coach‚ founded Blue Ribbon Sports. Their company became incorporated in 1968 and is known today worldwide as Nike. Nike leads the world in the design process‚ marketing and distribution of a quality‚ innovative world leading athletic product ranging from footwear‚ apparel‚ equipment‚ and a large variety of accessories for a number of sports and leisure activities
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