Nike Case Solution Essay - 1264 Words

Topic: Nike Inc.: Cost of Capital Course: International Finance Table of Contents 1 Background Information on the Case: 3 1.1 Nike’s Performance: 3 1.2 Nike Analysts Meeting June 28, 2001: 3 2 Kimi Ford’s Evaluation of Nike: 3 3 Joanna Cohen’s Calculation of Nike’s Cost of Capital: 3 3.1 Assumptions amp; Calculations: 3 4 Our Calculation: 4 4.1 Cost of common equity 4 4.2 Cost of debt 4 4.3 Weights of Debt and Equity 4 4.4 WACC 5 4.5 Equity Value of Share 5 5 Conclusion: 6 Background Information on the Case: Kimi Ford is a portfolio manager for the mutual-fund management firm NorthPoint Group. She is considering buying some shares for a fund she is managing, the NorthPoint Large-Cap Fund†¦show more content†¦She justified this lower rate as compared to the Treasury yield as Nike raised a portion of funding through Japanese yen notes, which carry rates between 2.0% and 4.3%. After tax the cost of debt is 2.7% (tax assumed as 38%; 35% U.S. statutory tax rate and state tax of 3%). 5) Cost of Equity was calculated using CAPM method since it is a superior method. She estimated it at 10.5%. Her calculation is based on the current yield on 20-year Treasury bond asShow MoreRelatedThe Supply Sequence Management ( Scm ) Along With Erp Software Implementation1653 Words   |  7 PagesThe case offers a detailed account from the failure involving Supply along with Demand Setting up software setup at Nike, a respected Footwear along with Apparel company. The case traces the history of supply chain along with ERP software implementation in Nike along with presents the explanation behind his or her implementation. It particulars the conditions that led to the SCM software implementation failure and as well examines the actual steps consumed by Nike to system. Finally, the case exploresRead MoreNike Swot Analysis1382 Words   |  6 PagesSWOT Analysis Nike Strengths. 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