Nike Case Study Discussion

Joanna discussion essay Kimi Ford, a portfolio double-decker at NorthPoint Group, was considering buying constituents of Nike Inc. for the line she managed. She read through galore(postnominal) analyst write-ups on Nike, including on the whole(a) the analyst reputes that she could find active the recent meeting Nike had held to go its fiscal year 2001 results. The authorships showed that turn some analysts thought Nikes fiscal targets were too aggressive, others saw authoritative growth opportunities in sic up and in Nikes multinational backupes. Kimi therefore decided to arm her bear forecast to take after to a clearer conclusion. Her forecast showed that for a drop rate of 12%, Nike was overvalued at its topical share price. However, a quick sensibility synopsis she also did revealed that Nike was undervalued at s conclusion external rates below 11.2%. Since Kimi had to insure a meeting, she re interested her new-fangled assistant Joanna Cohen to evaluate Nikes terms of capital. To start with, Joanna collected alone the data she thought she major power need for her analysis.

The reports she used let in Nikes consolidated Income Statements for the years 1995-2001, its Consolidated Balance Sheets for the years 2000 and 2001, the actual Capital market and monetary Information provided by Bloomberg pecuniary Services, and her manager Kimis Discounted Cash proceed and Sensitivity Analysis report showing growth assumptions for the nigh 10 years. By the residuum of the day, she submitted her cost of capital theme and a memo explaining her assumptions to Kimi. The quest paragraphs discuss Joannas report, giving an analysis of her assumptions and her choice of data and room in calculating an count of Nikes cost of capital. 1. Selection of single(a) Cost of Capital Considering that Nike has multiple business segments, it would seem appropriate to cast costs of capital for apiece segment individually. However, 92% of Nikes flout revenue comes from its footwear and bring down segments. In addition, footwear and uniform are...If you want to get a full essay, order it on our website: Ordercustompaper.com

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