SlideShare a Scribd company logo
ZCMA 6032 : Managerial Finance
Case Study :
DECEMBER 2015
ZP02183
UKM, BANGI.
NorthPoint Group
• Mutual-fund management firm;
• Invest in Fortune 500 companies
eg. ExxonMobil, GM, McD & 3M;
Nike,Inc.
• Athletic shoe manufacturer;
• Revenue had plateaued at around
$9 billion;eg. ExxonMobil, GM, McD & 3M;
• Perform well while stock market
decline;
• Year 2000, return of 20.7%;
• Market return :S&P 500 fell 10.1%
• End June 2001, fund’s year-to-
date returns at 6.4%
• Market return :S&P 500 decline -
7.3%
$9 billion;
• Net income : decrease from
almost $800 M  $580M;
• Market share in U.S. : drop from
48% (1997) 42% (2000);
• Issues :
– supply-chain ; &
– adverse effect of dollar
ZP02183
Main concern : Top-line growth and operating
performance
Develop more mid-price segment athletic-shoe
product to boost revenue
Push apparel line
Cut down expense
Long term revenue growth target : 8-10% &
Earning –growth target : > 15%
ZP02183
• Whether or not Nike is worth investing;
• Mixed analyst recommendation:
– Lehman Brothers :INVEST
– UBS Warburg / CSFB :NOT TO INVEST
• Kimi Ford forecast :
– Discount rate of Nike : 12% 
overvalued
– Discount rate of nike : < 11.17% 
undervalued
• to recalculate the cost of capital
ZP02183

More Related Content

What's hot

Under Armour Sample - DO NOT DISTRIBUTE OR SHARE
Under Armour Sample - DO NOT DISTRIBUTE OR SHAREUnder Armour Sample - DO NOT DISTRIBUTE OR SHARE
Under Armour Sample - DO NOT DISTRIBUTE OR SHARE
deloittecompetition
 
Under Armour Marketing Analysis Report
Under Armour Marketing Analysis ReportUnder Armour Marketing Analysis Report
Under Armour Marketing Analysis Report
Isamar Miranda
 
Phil knight Case Study
Phil knight Case StudyPhil knight Case Study
Phil knight Case Study
Ashish Mathew
 
2007 1st Place
2007 1st Place2007 1st Place
Nike Presentation 1.pptx
Nike Presentation 1.pptxNike Presentation 1.pptx
Nike Presentation 1.pptx
Brendan M. Coughlin (MU-Student)
 
Nike vs Adidas - Financial Analysis
Nike vs Adidas - Financial AnalysisNike vs Adidas - Financial Analysis
Nike vs Adidas - Financial Analysis
Joshua Militante
 
The Global Presence and Demographic Focus of Nike
The Global Presence and Demographic Focus of Nike The Global Presence and Demographic Focus of Nike
The Global Presence and Demographic Focus of Nike
Victoria T. Fields, B.S.
 
Hitting the Wall: Nike and International Labor Practices
Hitting the Wall: Nike and International Labor PracticesHitting the Wall: Nike and International Labor Practices
Hitting the Wall: Nike and International Labor Practices
Erhan Sozen
 
Leather and allied products global market report 2018
Leather and allied products global market report 2018Leather and allied products global market report 2018
Leather and allied products global market report 2018
lakshmipraneethganti
 
Nike Case write up
Nike Case write upNike Case write up
Nike Case write up
Fred Sosa
 
Ermployee laws case study analysis
Ermployee laws case study analysisErmployee laws case study analysis
Ermployee laws case study analysis
Honey Singh
 
Auto Summit 2015
Auto Summit 2015Auto Summit 2015
Auto Summit 2015
Nicole Scott
 
Imd
ImdImd
M&A: acquisition plan Pirelli-Goodyear
M&A: acquisition plan Pirelli-GoodyearM&A: acquisition plan Pirelli-Goodyear
M&A: acquisition plan Pirelli-Goodyear
Francesco Micaletti
 
Adidas AG valuation
Adidas AG valuationAdidas AG valuation
Adidas AG valuation
Vivek Jha
 

What's hot (15)

Under Armour Sample - DO NOT DISTRIBUTE OR SHARE
Under Armour Sample - DO NOT DISTRIBUTE OR SHAREUnder Armour Sample - DO NOT DISTRIBUTE OR SHARE
Under Armour Sample - DO NOT DISTRIBUTE OR SHARE
 
Under Armour Marketing Analysis Report
Under Armour Marketing Analysis ReportUnder Armour Marketing Analysis Report
Under Armour Marketing Analysis Report
 
Phil knight Case Study
Phil knight Case StudyPhil knight Case Study
Phil knight Case Study
 
2007 1st Place
2007 1st Place2007 1st Place
2007 1st Place
 
Nike Presentation 1.pptx
Nike Presentation 1.pptxNike Presentation 1.pptx
Nike Presentation 1.pptx
 
Nike vs Adidas - Financial Analysis
Nike vs Adidas - Financial AnalysisNike vs Adidas - Financial Analysis
Nike vs Adidas - Financial Analysis
 
The Global Presence and Demographic Focus of Nike
The Global Presence and Demographic Focus of Nike The Global Presence and Demographic Focus of Nike
The Global Presence and Demographic Focus of Nike
 
Hitting the Wall: Nike and International Labor Practices
Hitting the Wall: Nike and International Labor PracticesHitting the Wall: Nike and International Labor Practices
Hitting the Wall: Nike and International Labor Practices
 
Leather and allied products global market report 2018
Leather and allied products global market report 2018Leather and allied products global market report 2018
Leather and allied products global market report 2018
 
Nike Case write up
Nike Case write upNike Case write up
Nike Case write up
 
Ermployee laws case study analysis
Ermployee laws case study analysisErmployee laws case study analysis
Ermployee laws case study analysis
 
Auto Summit 2015
Auto Summit 2015Auto Summit 2015
Auto Summit 2015
 
Imd
ImdImd
Imd
 
M&A: acquisition plan Pirelli-Goodyear
M&A: acquisition plan Pirelli-GoodyearM&A: acquisition plan Pirelli-Goodyear
M&A: acquisition plan Pirelli-Goodyear
 
Adidas AG valuation
Adidas AG valuationAdidas AG valuation
Adidas AG valuation
 

Viewers also liked

Nike strategy and acquisition EMBA 2014
Nike strategy and acquisition EMBA 2014Nike strategy and acquisition EMBA 2014
Nike strategy and acquisition EMBA 2014
Debasis Chakraborty
 
Beauty specialist performance appraisal
Beauty specialist performance appraisalBeauty specialist performance appraisal
Beauty specialist performance appraisal
valikiealie08
 
Nyhetsbrev april_print
Nyhetsbrev april_printNyhetsbrev april_print
Nyhetsbrev april_printGabi Wagner
 
Safety and secure methods while remodeling the house
Safety and secure methods while remodeling the houseSafety and secure methods while remodeling the house
Safety and secure methods while remodeling the house
lee shin
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
Rafiqul Islam
 
4 Permanent Hire
4 Permanent Hire4 Permanent Hire
4 Permanent Hire
Darren Moore
 
Thai Hoa Dot Song Co
Thai Hoa Dot Song CoThai Hoa Dot Song Co
Thai Hoa Dot Song Cotracy414
 
Zk khánh ngân
Zk khánh ngânZk khánh ngân
Zk khánh ngân
Khánh Duy Bùi
 
04. Княжанне Альгерда. Пачатак праўлення Ягайлы
04. Княжанне Альгерда. Пачатак праўлення Ягайлы04. Княжанне Альгерда. Пачатак праўлення Ягайлы
04. Княжанне Альгерда. Пачатак праўлення Ягайлы
AnastasiyaF
 
Portfolio
PortfolioPortfolio
Portfolio
Hope Crosson
 
Viêm đa Khớp Cấp Tính
Viêm đa Khớp Cấp TínhViêm đa Khớp Cấp Tính
Viêm đa Khớp Cấp Tínhelsie617
 
algorimo distribuidos
algorimo distribuidosalgorimo distribuidos
algorimo distribuidos
Víctor Aurelio Bocanegra Rios
 
12. На шляху да дзяржавы
12. На шляху да дзяржавы12. На шляху да дзяржавы
12. На шляху да дзяржавы
AnastasiyaF
 
Sụn khớp hư tổn làm khớp mau thoái hóa
Sụn khớp hư tổn làm khớp mau thoái hóaSụn khớp hư tổn làm khớp mau thoái hóa
Sụn khớp hư tổn làm khớp mau thoái hóanona479
 
Stock Repurchases aka Share Buybacks for US Firms
Stock Repurchases aka Share Buybacks for US FirmsStock Repurchases aka Share Buybacks for US Firms
Stock Repurchases aka Share Buybacks for US Firms
Pranav Ghai
 
sadia'CV
sadia'CVsadia'CV
sadia'CV
Sadia Hussain
 
15. Матэрыяльная культура ўсходніх славян
15. Матэрыяльная культура ўсходніх славян15. Матэрыяльная культура ўсходніх славян
15. Матэрыяльная культура ўсходніх славян
AnastasiyaF
 
12. Искусство рококо
12. Искусство рококо12. Искусство рококо
12. Искусство рококо
AnastasiyaF
 
16. Дзяржаўнасць усходніх славян
16. Дзяржаўнасць усходніх славян16. Дзяржаўнасць усходніх славян
16. Дзяржаўнасць усходніх славян
AnastasiyaF
 
08. Гаспадарчае жыццё
08. Гаспадарчае жыццё08. Гаспадарчае жыццё
08. Гаспадарчае жыццё
AnastasiyaF
 

Viewers also liked (20)

Nike strategy and acquisition EMBA 2014
Nike strategy and acquisition EMBA 2014Nike strategy and acquisition EMBA 2014
Nike strategy and acquisition EMBA 2014
 
Beauty specialist performance appraisal
Beauty specialist performance appraisalBeauty specialist performance appraisal
Beauty specialist performance appraisal
 
Nyhetsbrev april_print
Nyhetsbrev april_printNyhetsbrev april_print
Nyhetsbrev april_print
 
Safety and secure methods while remodeling the house
Safety and secure methods while remodeling the houseSafety and secure methods while remodeling the house
Safety and secure methods while remodeling the house
 
Presentation (VAIBA)
Presentation (VAIBA)Presentation (VAIBA)
Presentation (VAIBA)
 
4 Permanent Hire
4 Permanent Hire4 Permanent Hire
4 Permanent Hire
 
Thai Hoa Dot Song Co
Thai Hoa Dot Song CoThai Hoa Dot Song Co
Thai Hoa Dot Song Co
 
Zk khánh ngân
Zk khánh ngânZk khánh ngân
Zk khánh ngân
 
04. Княжанне Альгерда. Пачатак праўлення Ягайлы
04. Княжанне Альгерда. Пачатак праўлення Ягайлы04. Княжанне Альгерда. Пачатак праўлення Ягайлы
04. Княжанне Альгерда. Пачатак праўлення Ягайлы
 
Portfolio
PortfolioPortfolio
Portfolio
 
Viêm đa Khớp Cấp Tính
Viêm đa Khớp Cấp TínhViêm đa Khớp Cấp Tính
Viêm đa Khớp Cấp Tính
 
algorimo distribuidos
algorimo distribuidosalgorimo distribuidos
algorimo distribuidos
 
12. На шляху да дзяржавы
12. На шляху да дзяржавы12. На шляху да дзяржавы
12. На шляху да дзяржавы
 
Sụn khớp hư tổn làm khớp mau thoái hóa
Sụn khớp hư tổn làm khớp mau thoái hóaSụn khớp hư tổn làm khớp mau thoái hóa
Sụn khớp hư tổn làm khớp mau thoái hóa
 
Stock Repurchases aka Share Buybacks for US Firms
Stock Repurchases aka Share Buybacks for US FirmsStock Repurchases aka Share Buybacks for US Firms
Stock Repurchases aka Share Buybacks for US Firms
 
sadia'CV
sadia'CVsadia'CV
sadia'CV
 
15. Матэрыяльная культура ўсходніх славян
15. Матэрыяльная культура ўсходніх славян15. Матэрыяльная культура ўсходніх славян
15. Матэрыяльная культура ўсходніх славян
 
12. Искусство рококо
12. Искусство рококо12. Искусство рококо
12. Искусство рококо
 
16. Дзяржаўнасць усходніх славян
16. Дзяржаўнасць усходніх славян16. Дзяржаўнасць усходніх славян
16. Дзяржаўнасць усходніх славян
 
08. Гаспадарчае жыццё
08. Гаспадарчае жыццё08. Гаспадарчае жыццё
08. Гаспадарчае жыццё
 

Similar to Nike cost of capital zp02183

Argo Group Investor Presentation
Argo Group Investor PresentationArgo Group Investor Presentation
Argo Group Investor Presentation
argo_group
 
Quarterly Insurance Round Up 2q08
Quarterly Insurance Round Up 2q08Quarterly Insurance Round Up 2q08
Quarterly Insurance Round Up 2q08
Jason Jones
 
3M Presentation
3M Presentation3M Presentation
3M Presentation
TomasValladares1
 
Recession
RecessionRecession
Recession
Prashant Nair
 
2021-full-year-results-slides.pdf
2021-full-year-results-slides.pdf2021-full-year-results-slides.pdf
2021-full-year-results-slides.pdf
CharlesSantos684817
 
Managing turnarounds in times of crisis
Managing turnarounds in times of crisisManaging turnarounds in times of crisis
Managing turnarounds in times of crisis
Implement Consulting Group
 
Q1 2018 earnings final (002)
Q1 2018 earnings final (002)Q1 2018 earnings final (002)
Q1 2018 earnings final (002)
Masco_Investors
 
Q2 2009 Earning Report of Wolverine World Wide, Inc.
Q2 2009 Earning Report of Wolverine World Wide, Inc.Q2 2009 Earning Report of Wolverine World Wide, Inc.
Q2 2009 Earning Report of Wolverine World Wide, Inc.
earningreport earningreport
 
Micron fq1 2018-earnings_call_presentation_slides
Micron fq1 2018-earnings_call_presentation_slidesMicron fq1 2018-earnings_call_presentation_slides
Micron fq1 2018-earnings_call_presentation_slides
Shaen PD
 
3Q 2008T RANSCRIPT
3Q 2008T RANSCRIPT3Q 2008T RANSCRIPT
3Q 2008T RANSCRIPT
finance22
 
What is going on with Pension Funds - December 2022.pptx
What is going on with Pension Funds - December 2022.pptxWhat is going on with Pension Funds - December 2022.pptx
What is going on with Pension Funds - December 2022.pptx
paul young cpa, cga
 
itw 2002 arfin
itw 2002 arfinitw 2002 arfin
itw 2002 arfin
finance16
 
itw 2002 arfin
itw 2002 arfinitw 2002 arfin
itw 2002 arfin
finance16
 
General Motors by mayur
General Motors by mayurGeneral Motors by mayur
General Motors by mayur
mayur6789
 
Q2 2013 final presentation
Q2 2013 final presentationQ2 2013 final presentation
Q2 2013 final presentation
Masco_Investors
 
citigroup January 20, 2006 - Fourth Quarter Financial Supplement
citigroup January 20, 2006 - Fourth Quarter Financial Supplementcitigroup January 20, 2006 - Fourth Quarter Financial Supplement
citigroup January 20, 2006 - Fourth Quarter Financial Supplement
QuarterlyEarningsReports
 
ingram micro Annual Report1999
ingram micro Annual Report1999ingram micro Annual Report1999
ingram micro Annual Report1999
finance7
 
2Q 2008 EARNINGSTRAN SCRIPT
2Q 2008 EARNINGSTRAN SCRIPT2Q 2008 EARNINGSTRAN SCRIPT
2Q 2008 EARNINGSTRAN SCRIPT
finance22
 
Cummins_4q06
Cummins_4q06Cummins_4q06
Cummins_4q06
finance21
 
Samsung Q4 2008 earnings release
Samsung Q4 2008 earnings releaseSamsung Q4 2008 earnings release
Samsung Q4 2008 earnings release
earningsreport
 

Similar to Nike cost of capital zp02183 (20)

Argo Group Investor Presentation
Argo Group Investor PresentationArgo Group Investor Presentation
Argo Group Investor Presentation
 
Quarterly Insurance Round Up 2q08
Quarterly Insurance Round Up 2q08Quarterly Insurance Round Up 2q08
Quarterly Insurance Round Up 2q08
 
3M Presentation
3M Presentation3M Presentation
3M Presentation
 
Recession
RecessionRecession
Recession
 
2021-full-year-results-slides.pdf
2021-full-year-results-slides.pdf2021-full-year-results-slides.pdf
2021-full-year-results-slides.pdf
 
Managing turnarounds in times of crisis
Managing turnarounds in times of crisisManaging turnarounds in times of crisis
Managing turnarounds in times of crisis
 
Q1 2018 earnings final (002)
Q1 2018 earnings final (002)Q1 2018 earnings final (002)
Q1 2018 earnings final (002)
 
Q2 2009 Earning Report of Wolverine World Wide, Inc.
Q2 2009 Earning Report of Wolverine World Wide, Inc.Q2 2009 Earning Report of Wolverine World Wide, Inc.
Q2 2009 Earning Report of Wolverine World Wide, Inc.
 
Micron fq1 2018-earnings_call_presentation_slides
Micron fq1 2018-earnings_call_presentation_slidesMicron fq1 2018-earnings_call_presentation_slides
Micron fq1 2018-earnings_call_presentation_slides
 
3Q 2008T RANSCRIPT
3Q 2008T RANSCRIPT3Q 2008T RANSCRIPT
3Q 2008T RANSCRIPT
 
What is going on with Pension Funds - December 2022.pptx
What is going on with Pension Funds - December 2022.pptxWhat is going on with Pension Funds - December 2022.pptx
What is going on with Pension Funds - December 2022.pptx
 
itw 2002 arfin
itw 2002 arfinitw 2002 arfin
itw 2002 arfin
 
itw 2002 arfin
itw 2002 arfinitw 2002 arfin
itw 2002 arfin
 
General Motors by mayur
General Motors by mayurGeneral Motors by mayur
General Motors by mayur
 
Q2 2013 final presentation
Q2 2013 final presentationQ2 2013 final presentation
Q2 2013 final presentation
 
citigroup January 20, 2006 - Fourth Quarter Financial Supplement
citigroup January 20, 2006 - Fourth Quarter Financial Supplementcitigroup January 20, 2006 - Fourth Quarter Financial Supplement
citigroup January 20, 2006 - Fourth Quarter Financial Supplement
 
ingram micro Annual Report1999
ingram micro Annual Report1999ingram micro Annual Report1999
ingram micro Annual Report1999
 
2Q 2008 EARNINGSTRAN SCRIPT
2Q 2008 EARNINGSTRAN SCRIPT2Q 2008 EARNINGSTRAN SCRIPT
2Q 2008 EARNINGSTRAN SCRIPT
 
Cummins_4q06
Cummins_4q06Cummins_4q06
Cummins_4q06
 
Samsung Q4 2008 earnings release
Samsung Q4 2008 earnings releaseSamsung Q4 2008 earnings release
Samsung Q4 2008 earnings release
 

Recently uploaded

Singapore Event 2024 State of Play Slides
Singapore Event 2024 State of Play SlidesSingapore Event 2024 State of Play Slides
Singapore Event 2024 State of Play Slides
International Federation of Accountants
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
msthrill
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
brunasordi905
 
Importance of community participation in development projects.pdf
Importance of community participation in development projects.pdfImportance of community participation in development projects.pdf
Importance of community participation in development projects.pdf
krisretro1
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
asukqco
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
ribhi87
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
KishoreKatta6
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
Singapore 2024 Event The Way Forward Slides
Singapore 2024 Event The Way Forward SlidesSingapore 2024 Event The Way Forward Slides
Singapore 2024 Event The Way Forward Slides
International Federation of Accountants
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
nimaruinazawa258
 
Tiểu luận: PURPOSE OF BUDGETING IN SME.docx
Tiểu luận: PURPOSE OF BUDGETING IN SME.docxTiểu luận: PURPOSE OF BUDGETING IN SME.docx
Tiểu luận: PURPOSE OF BUDGETING IN SME.docx
lamluanvan.net Viết thuê luận văn
 
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptxBudgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
Daniel
 
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
ahmedendrise81
 
Discovering Delhi - India's Cultural Capital.pptx
Discovering Delhi - India's Cultural Capital.pptxDiscovering Delhi - India's Cultural Capital.pptx
Discovering Delhi - India's Cultural Capital.pptx
cosmo-soil
 
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
Neil Day
 
Singapore 2024 Sustainability Reporting and Accountancy Education Slides
Singapore 2024 Sustainability Reporting and Accountancy Education SlidesSingapore 2024 Sustainability Reporting and Accountancy Education Slides
Singapore 2024 Sustainability Reporting and Accountancy Education Slides
International Federation of Accountants
 
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
Alexander Belyaev
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
Commonwealth
 

Recently uploaded (20)

Singapore Event 2024 State of Play Slides
Singapore Event 2024 State of Play SlidesSingapore Event 2024 State of Play Slides
Singapore Event 2024 State of Play Slides
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
 
Importance of community participation in development projects.pdf
Importance of community participation in development projects.pdfImportance of community participation in development projects.pdf
Importance of community participation in development projects.pdf
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
PM pre reads for the product manager framework
PM pre reads for the product manager frameworkPM pre reads for the product manager framework
PM pre reads for the product manager framework
 
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
Singapore 2024 Event The Way Forward Slides
Singapore 2024 Event The Way Forward SlidesSingapore 2024 Event The Way Forward Slides
Singapore 2024 Event The Way Forward Slides
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
 
Tiểu luận: PURPOSE OF BUDGETING IN SME.docx
Tiểu luận: PURPOSE OF BUDGETING IN SME.docxTiểu luận: PURPOSE OF BUDGETING IN SME.docx
Tiểu luận: PURPOSE OF BUDGETING IN SME.docx
 
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptxBudgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
Budgeting as a Control Tool in Govt Accounting in Nigeria Prof Oyedokun.pptx
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
 
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
美洲杯投注-美洲杯投注买球官方官网-美洲杯投注比赛投注官网|【​网址​🎉ac10.net🎉​】
 
Discovering Delhi - India's Cultural Capital.pptx
Discovering Delhi - India's Cultural Capital.pptxDiscovering Delhi - India's Cultural Capital.pptx
Discovering Delhi - India's Cultural Capital.pptx
 
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
BIHC Briefing June 2024 from Bank+Insurance Hybrid Capital in association wit...
 
Singapore 2024 Sustainability Reporting and Accountancy Education Slides
Singapore 2024 Sustainability Reporting and Accountancy Education SlidesSingapore 2024 Sustainability Reporting and Accountancy Education Slides
Singapore 2024 Sustainability Reporting and Accountancy Education Slides
 
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
 

Nike cost of capital zp02183

  • 1. ZCMA 6032 : Managerial Finance Case Study : DECEMBER 2015 ZP02183 UKM, BANGI.
  • 2. NorthPoint Group • Mutual-fund management firm; • Invest in Fortune 500 companies eg. ExxonMobil, GM, McD & 3M; Nike,Inc. • Athletic shoe manufacturer; • Revenue had plateaued at around $9 billion;eg. ExxonMobil, GM, McD & 3M; • Perform well while stock market decline; • Year 2000, return of 20.7%; • Market return :S&P 500 fell 10.1% • End June 2001, fund’s year-to- date returns at 6.4% • Market return :S&P 500 decline - 7.3% $9 billion; • Net income : decrease from almost $800 M  $580M; • Market share in U.S. : drop from 48% (1997) 42% (2000); • Issues : – supply-chain ; & – adverse effect of dollar ZP02183
  • 3. Main concern : Top-line growth and operating performance Develop more mid-price segment athletic-shoe product to boost revenue Push apparel line Cut down expense Long term revenue growth target : 8-10% & Earning –growth target : > 15% ZP02183
  • 4. • Whether or not Nike is worth investing; • Mixed analyst recommendation: – Lehman Brothers :INVEST – UBS Warburg / CSFB :NOT TO INVEST • Kimi Ford forecast : – Discount rate of Nike : 12%  overvalued – Discount rate of nike : < 11.17%  undervalued • to recalculate the cost of capital ZP02183