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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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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LO3: Identify and analyse the individual elements of the extended marketing mix LO4: Apply the extended marketing mix to different marketing segments and contexts Context The purpose of this report is to apply your knowledge of marketing to Nike (a well known sports retailer). Your report should explain the concepts of marketing and illustrate segmentation‚ targeting and positioning using one of their products. Finally‚ you will analyse their marketing and devise a marketing mix for one
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NIKE Executive Summary by Lawrence Gimeno Recommendations: Make it count My first recommendation is directed at Nike’s push into digital sports. In my opinion the new accelerometer based Nike+ technology is the birth of a whole new generation of Nike products and an amazing innovation to motivate people to include sports into their everyday life. Nike has attained a leading role in almost every one of the upcoming world wide sporting events‚ such as the 2012 Olympics‚ the 2012 Soccer Euro Cup
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PORTERS 5 FORCES. DEFINITION OF ’PORTER’S 5 FORCES’ Named after Michael E. Porter‚ this model identifies and analyzes 5 competitive forces that shape every industry‚ and helps determine an industry’s weaknesses and strengths. 1. Competition in the industry 2. Potential of new entrants into industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products The Porter’s Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This
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Discuss the character of Jimmy Porter in Look back in anger explaining how you feel about him as we move through the main action of the play. Have your ideas changed about him by the time we reach the play’s final scene? Jimmy Porter is the play’s main character. He is the "Angry Young Man" who expresses his frustration for the lack of feelings in his placid domestic life. Jimmy can be understood as both a hero for his unfiltered expressions of emotion and frustration in a culture that propagated
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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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Introduction Nike is an American multinational corporation that is engaged in the design‚ development and worldwide marketing and selling of footwear‚ apparel‚ equipment‚ accessories and services. The company is headquartered near Beaverton‚ Oregon‚ in the Portland metropolitan area. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment‚ with revenue in excess of US$24.1 billion in its fiscal year 20. As of 2012‚ it employed more than
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summary NIKE‚ Inc. was incorporated in 1968 under the laws of the state of Oregon- USA. A 176 acre facility of 18 buildings as its world headquarters housing 6‚000 employees engaging in management‚ research‚ design‚ development‚ marketing‚ finance‚ and administrative functions from nearly all of its divisions. The principal business activity is the design‚ development and worldwide marketing and selling of high quality footwear‚ apparel‚ equipment‚ and accessory products. NIKE is the largest
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Nike is a major publicly traded sportswear‚ footwear and equipment supplier based in the US which was founded in 1962 originally know as Blue Ribbon Sports. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global (Nike.com‚ 2011). Nike produces a wide range of sports equipments such as running shoes‚ sportswear‚ football‚ basketball‚ tennis‚ golf‚ etc. Now Nike follows the global fashion trends and is well known and popular in the
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