Nike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital‚ which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When the
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A. Brief Company Background: Brief History: Nike‚ Inc. was incorporated in 1968 when The University of Oregon’s track and field coach‚ Bill Bowerman‚ and his star runner‚ Phil Knight‚ thought they could better design and sell shoes to runners than what was available at the time. It is headquartered in Washington County‚ Oregon. Nike is many things – a product designer‚ a consumer goods manufacturer‚ a brand communicator‚ a leader in corporate responsibility‚ and a portfolio of authentic footwear
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A Financial Ratio Quarterly Trend Analysis of Nike‚ Inc. Stock Symbol: NKE Listed on the New York Stock Exchange In Partial Fulfillment of the Requirements of the Course: FIN 6406 Report Completed By: 1. Introduction A financial ratio quarterly trend analysis was completed to provide the reader with a clear assessment of the financial health of the company: NIKE International. Just knowing that this company chose a symbol that references the winged goddess of victory seems to have been a
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Case Study: Nike‚ Inc.‚ and Sweatshops Summary: As a company‚ Nike has been the dominant presence in the athletic apparel industry globally. Although they were not the only company known to practice unethical manufacturing processes‚ they were the major target of criticism because of their leadership role. To fight back against the negative publicity‚ Nike changed many working conditions and practices‚ arranged for independent audits by very reputable individuals in the industry to rate these
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------------------------------------------------- Apple Inc in 2010 - Executive Summary ------------------------------------------------- ------------------------------------------------- Background: Apple was founded by Steve Jobs with Steve Wozniak on Apr 1‚ 1976. With the inventions of Apple I and II‚ Apple became the Industry Leader till 1980.The entry of IBM In PC Market hit Apple badly in terms of market share. High compatibility issues and higher Prices and the growth of highly compatible
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CORPORATE SOCIAL RESPONSIBILITY Case Study about the CSR of Nike prepared by Paul SOMER TABLE OF CONTENTS • Background of the implementation of CSR at Nike (besides the existing legal commitment) • Activities of Nike regarding CSR • Responsibility by impementing the Environmental Apparel Design Tool • • Nike Responsibility Governance Conclusion and future prospects BACKGROUND FOR CSR OF NIKE • In 1992 it became public that Nike produces in Indonesia at minimum wages • Strike in the production
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Nike Financial Analysis Nike is a company that has thoroughly embedded itself into the psyche of people around the world. It’s a company that started with humble origins from selling footwear in the basement to becoming the behemoth in the athletic industry. Bill Bowerman‚ University of Oregon track & field coach‚ and Phil Knight‚ middle-distance runner under Bowerman co-founded Nike. Nike was first established as Blue Ribbon Sports in 1964 as a partnership and the name Nike was officially adopted
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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
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Summary of Nike Case 张朦 袁潇 钟毅 张希圆 Nike is nowadays one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment accessories and services. In 2001‚ Nike’s share price declined to $42.09 on July 5. The unexpected fall in share price captures the NorthPoint Large-Cap Fund’s attention. The fund manager of this mutual fund‚ Kimi Ford‚ concerns whether it is the time to put Nike into the portfolio. On July 5‚ 2001‚ Nike discloses its fiscal year
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Executive summary In this report we focus on Nike’s Inc. Cost of Capital and its financial importance for the company and future investors. The management of Nike Inc. addresses issues both on top-line growth and operating performance. The company’s cost of capital is a critical element in such decisions and it is important to estimate precisely the weighted average cost of capital (WACC). In our analysis‚ we examine why WACC is important in decision making and we show how WACC for Nike Inc. is
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