NIKE‚ INC.: COST OF CAPITAL Professor Meiberger By Sebastian Gomez Team 5 Cohort: Front The portfolio manager for NorthPoint Group‚ Kimi Ford was deciding if she should pitch in and draw Nike within NorthPoint Large-Cap Fund. Nike‚ which did not have the strongest fiscal year results in 2001‚ was implementing new strategies to heighten its revenue and income. Kimi Ford‚ after having carefully read reports by analyst‚ and their input within this publicly traded company decided to emphasize
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ANALYTIC CONSULTING IB94R0 INDIVIDUAL ASSIGNMENT STUDENT ID: 1262478 GROUP 12 Table of Contents Soft Systems Methodology: Rationale for Reflection ..................................................................................3 Rich Pictures ..................................................................................................................................................3 Root Definition ................................................................................
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Executive Summary: Tesco is the world’s third largest retailer and has been on the top in the UK market with a market share of 25%. In the past few years it underwent horizontal expansion and diversified into new products and services like Tesco property and telecommunications as part of its long term strategy to reduce risk. It started online shopping‚ nonfood sector‚ clothing‚ home ware and electricals to add value to the business to fight competition. Thus achieving economies of scale and scope
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Founded in 1994‚ Nike Football has grown immensely to become one of the two market leaders in football apparel and footwear. Recognizing the vast opportunities the 2010 World Cup offers for their growth and differentiation from the competitors‚ they are considering a shift in their marketing strategy. Nike’s brand image is of an innovative company‚ focusing on the high performance of their products‚ while simultaneously offering extraordinary designs by partnering with many top-level footballers
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we used market value based on the share price of Nike on July 5‚ 2001and number of shares outstanding‚ which resulted in the weights of debt and equity of 10.2% and 89.8% respectively (see Exhibit 2). Cost of Debt: Cost of debt was calculated by Ms. Cohen by finding the historical interest rate of 2.7% and tax rate of 38%. We agree with her estimation of the tax rate of 38%‚ but calculated a cost of debt of 7.17% based on the market price of Nike bonds and finding their yield to maturity (see Exhibit
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An evaluation of Lonrho’s corporate strategy should start from the two main key issues: in what businesses the firm should compete and how corporate headquarter should manage those businesses. Lonrho’s profile in 1996 included Agriculture‚ Sugar‚ General Trade‚ Hotels‚ Manufacturing‚ Mining&Refining and Motor&Equipment. The level of diversification was clearly high and the firm was pursuing a unrelated strategy‚ with less than 70% of revenues that came from the dominant business (Mining ) and without
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Introduction - Nike Nike is the company with one of the most recognised logos in the world – the “swoosh” logo. They are the worlds’ largest sports and fitness company and are a leader in sports equipment research and development earning an estimated US$14 billion in revenue. Nike anticipates the needs of the consumer and this innovation is what sets them apart from its competition. They have a desire to design products which will give definite technological benefits whilst enhancing an athletes’
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Corporate Social Responsibility (CSR) policies implemented by the organisation Nike when faced with an issue‚ to critically assess the effectiveness of these policies and lastly to offer recommendations. Company Background Based in Beaverton‚ Oregon‚ Nike Inc. is one of the world’s major distributors of sportswear and equipment with its operations spanning across the worlds six continents in over 160 countries (nikebiz‚ 2011). Nike is the world’s leading designer‚ marketer and distributor of authentic
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(13% today w/ first clean slate in FY14)‚ international presence (step-back before forward)‚ and square footage growth opportunity at Outlets as leases (typically 5 year) come due. In other words‚ growing pains. Boss also started coverage of Nike Inc. (NKE)‚ giving the company a Hold rating and a $100 price target‚ a touch above today’s $99 share price. He touts Nike’s best-in-class position in its category and also points favorably to its balance sheet: With annual free cash flow generation
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Nike CSR Corporate social responsibility can be defined as the "economic‚ legal‚ ethical‚ and discretionary expectations that society has of organisations at a given point in time" (Carroll and Buchholtz 2003‚ p. 36). The concept of corporate social responsibility means that organizations have moral‚ ethical‚ and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its
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