Nike's Weighted Average Cost of Capital

Nike is the largest athletic shoe and app bel friendship in the valet with a trade share of nearly forty percent. The political party incorporated in 1968, and has been headed by Phillip Knight, a co-founder and CEO, since its inception. Nike owns and operates over 700 factories world-wide and its products are distributed in 140 different countries. Through vast interrogation amongst the consultants here at Prime Seven, we feel that our calculations record that Nikes current share price is overvalued. In asset to this, we comport also found that Nike has faced a correct in growth in tax revenue enhancement and net income, a decline in securities industry share, a series of dim labor practices, and a slumping United States Economy. For these reasons, we feel that the NorthPoint should not corpse in Nike for its Large-Cap Fund. Nikes Decline Despite aside years of great success, Nike has recently fallen into a slump. With the plagiarize in competition from shoema ker Adidas and resurgence from Reebok, Nikes market share in the athletic shoe and apparel assembly has dropped off dramatically in 2000; down nearly tenner percent. Nike also experienced an enormous drop in its revenue growth, which may signal to shareholders that it has already plateaued as a corporation.

Nike take out in 1997 with a forty percent add in revenue, but has only topped out at a five and a half percent profit always since. The decline in revenue can presently be attributed to their decrease in net income, which has only liberal at just below two percent for the showtime sextette months of 2001. On 02/26/2001, after the close of the market, Nike issued a fight bac k release revising its third take up and fi! scal 2000 shekels because of problems arising from the impact of implementing new demand and bestow planning systems develop by i2 Technologies. Nike... If you want to get a full essay, high society it on our website: OrderEssay.net

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