Nike Inc.: Cost of Capital The Weighted Average Cost of Capital (WACC) is the overall required rate of return on a firm as a whole. It is important to calculate a firm’s cost of capital in order to determine the feasibility of a particular investment for a firm. I do not agree with Joanna Cohen’s WACC calculation. She calculated value of equity‚ value of debt‚ cost of equity‚ and cost of debt all incorrectly. For value of equity‚ Joanna simply used the number stated on the balance sheet instead
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manager at NorthPoint Group has been tasked with analyzing Nike and coming up with a valuation for Nike so that her company can decide whether it is a good investment or not. She found that at a discount rate of 12% the company is overvalued‚ while with a slight decrease in the discount rate‚ to 11.7% the company is undervalued. In order to value the company correctly an accurate cost of capital must be estimated. Analysis An analysis of cost of capital is based on company financials as well
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Introduction Kimi Ford is a portfolio manager at NorthPoint Group‚ a mutual-fund management firm. She is evaluating Nike‚ Inc. (“Nike”) to potentially buy shares of their stock for the fund she manages‚ the NorthPoint Large-Cap Fund. This fund mostly invests in Fortune 500 companies‚ with an emphasis on value investing. This Fund has performed well over the last 18 months despite the decline in the stock market. Ford has done a significant amount of research through analysts’ reports
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Nike Analysis Table of Contents Company history Pages 3-5 Environmental issues Pages 5-6 Marketing Objective Pages 6-7 Strategy Control Page 7 R and D Page 8 SWOT Pages 9-11 Competition Strategy Page 11 Political/Legal Page 12 Cultures Page 12 Demographics Page 13 Economic Strategy Page 13 Global Strategy Page 14 Environmental Strategy Page 15-16 Long Term Objectives Page 16 Specific recommendations Page 17 Conclusion . Page 17 Financials
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get a total cost of capital. Team 12 does not agree with Joanna Cohen’s WACC calculation because we feel she took some liberties in her numbers‚ the most notable being that of equity. Ms. Cohen used book equity‚ which was $3‚494‚500‚000. Since Nike is a publicly traded company‚ the stock price should be multiplied by the number of shares outstanding in order to get the true equity of the firm. 271‚500‚000 multiplied by $42.09‚ would give you $11‚427‚435‚000 in equity. In Ms. Cohen’s calculation
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Company Evaluation Project Of Nike Corporation Submitted By: Steven Ritter May 10‚ 2007 Financial Analysis Description of Company History Nike Corporation has become one of the most competitive sports and fitness companies worldwide. Two runners‚ Bill Bowerman and Phil Knight‚ from a small town in Oregon embarked upon the business with a handshake agreement. The enterprise began in January of 1964 with the introduction of Blue Ribbon Sports. In 1966 the handshake between
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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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former university track runners and coach‚ they were seeking to innovate in running shoes to give athletes a competitive advantage. In 1971‚ their first employee Jeff Johnson designed several shoes and started advertising the new brand that he called “Nike”. Co-founder Bill Bowerman’s philosophy is today’s vision of the company: “To bring inspiration and innovation to every athlete* in the world. (*And if you have a body‚ you are an athlete.) ». Mark Parker‚ actual president and CEO of Nike’s company
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SITUATION ANALYSIS REPORT Uber Technologies Inc. Group 3: Student 1 Student 2 Student 3 Student 4 Student 5 Student 6 Situation analysis Company description Uber Technologies Incorporated‚ commonly known as Uber‚ is a privately held multi-national company providing transportation network. Transportation network company (TNC) serves to connect paying passengers and drivers using non-commercial vehicles through the use of apps or websites. In Uber’s instance‚ services are exclusively provided on the
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3 • External and Internal analysis.……………………………. 6 • Segmentation‚ Targeting and positioning analysis..………. 7 • Marketing strategies.………………………………………. 8 • Marketing Mix..…………………………………………..... 9 • Costumer Relationship Management…………………….... 10 • Budget……………………………………………………....11 • Conclusion………………………….……………………....11 • Reference…………………………..…………………….... 12 2 Thales Andre Maia de Oliveira Executive Summary This report has Nike‚ INC. as it object of study. How
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