firm’s bond‚ Johanna only used the interest expense of the year divided by the average debt balance‚ which fully ignored the discounted cash flow of the cost of debt. 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and be prepared to justify your assumptions. Combining the analysis above‚ we now give our own WACC calculation as following: 2.1 The value of debt(based on EXIHIBIT 3). Since the book value of debt may represent the market value‚ we merely
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In the case study Nike: Managing Ethical Missteps and Seizing Opportunity‚ we explore the story of Nike: the world’s leading seller of athletic wear. As some may know and others may not‚ Nike was actually started (similar to FedEx by Fred Smith) from a college paper by Phil Knight which conceptualized importing athletic shoes from Japan into the United States. In 1964‚ Knight teamed up with a colleague and launched Blue Ribbon Sports‚ a distributor of Japanese athletic shoes which also marketed its
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Just Buy It: Nike Advertising Aimed at Glamour Readers: A Critical Feminist Analysis Darin J. Arsenault & Tamer Fawzy. Tamara : Journal of Critical Postmodern Organization Science. Las Cruces: 2001. Vol. 1‚ Iss. 2; pg. 63-76‚ 14 pgs Abstract (Article Summary) The growing popularity of women ’s sports has helped steer fitness companies such as Nike to carefully craft advertising messages aimed at women. The current study assessed Nike ’s marketing campaign in Glamour‚ a popular consumer magazine
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Assignment- 1 Introduction to Micro Economics 1.Will the problem of scarcity disappear over time as standards of living increase? 2.Distinguish between the Real and Financial flows that link product and factor market? 3.Why do we study Micro Economics? 4.Explain how the introduction of Govt. affects the circular flow of economic activity? 5.“Scarcity of Resources is the mother of all economic problems.” Discuss with example. 6.Why can’t you buy anything you want? What is
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Case Study Nike: The Sweatshop Debate MGT/448 November 2010 Case Study Nike: The Sweatshop Debate Nike was established in 1972 by Phil Knight. This marketing company is famous for their athletic shoes and apparels sold in some 140 countries (Hill‚ 2009‚ p. 154). Nike does not manufacturer any of these products they only design and market them. These products are manufactured in other countries such as Vietnam‚ Indonesia‚ and China‚ where the cost of labor is low. For years Nike has had repeated
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Nike Project Report Mridul Jain‚ Krishore Veerasekar‚ Ziad Ahmed Table of Contents ABOUT NIKE 1 Description of Nike 1 MAJOR EVENTS 2 Acquisition 2 Divestitures 2 STRATEGY 2 Advertising 2 NIKE’S FINANCIAL RATIOS 3 Liquidity or Working Capital 3 Current Ratio 3 Quick Ratio 3 Working Capital 4 Efficiency and Asset Management 5 Total Asset Turnover 5 Fixed Asset Turnover 5 Days Sales Outstanding 5 Debt Management 6 Total liabilities to Total Assets 6 Long-Term Debt to Capital 6 Times Interest
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Assignement #1 – Micro and macro functions of the law In my work I’m going to talk about the micro and macro function of a law and I will apply my knowledge of them on the case between Sophie Hess and Antoinette Royan. Micro and macro functions of the law In a law system‚ we can distinguish between micro and macro functions of a law. Both of them play very important role in a law system. “The interactions and relationships between law and each of these orders are very important and complex” .
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selected was Nike. Nike is engaged in the marketing and sales of footwear‚ apparel‚ equipment‚ accessories and much more around the globe. The primary reason I selected this was the company was despite proving itself to be one of the most sustainable businesses in the world. There is quite a significant amount of controversy on just how sustainable some of its business practices truly were in the past. The main controversy being its use of sweatshops to produce its merchandise. Nike is quite possibly
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Executive Summary Overview Nike is the market leader in athletic shoes in the United States. The Oregon based company has always utilized offshore facilities in low-income countries to produce at minimal costs followed by importation into predominantly the US for sales. Nike is quick to divest from emerging markets as costs rise and has recently signed short term production contracts with a long term strategy of production in China. Unlike Nike’s previous global endeavors‚ the political and cultural
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issues with Cohen’s calculation‚ and then analyze an new WACC to decide whether we should invest in Nike Inc. Many issues should be addressed regarding Joanna Cohen’s WACC calculation. First‚ to calculate the debt cost of capital‚ Cohen divided the total interest expense by the company’s average debt balance. This is an issue because she did not take into account the current yield on publicly traded Nike debt. Another issue that should be addressed is the calculation of the equity cost of capital. Using
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