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2 years ago

Explain how Nike came to that situation through its expansion strategy

Business

1 answer:

sasho [114]2 years ago

8 0

Answer:

Other than its superior products, it was able to expand thanks to its use of global marketing strategies to help expand its business globally and gain market share everywhere. Nike was able to use social media presence and strategic partnership and sponsorship to gain global consumers and market share

Explanation:

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Marble Construction estimates that its WACC is 10 percent ifequity comes from retained earnings. However, if the company issuesn

dedylja [7]

Answer:

Projects E,F and G should NOT be considered.

Optimal Capital is $5,750,000

Explanation:

The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)

Accept if r>k

Reject if r<k

Mayaccept if r = k

If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.

The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.

And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)

8 0

3 years ago

Lycan, Inc., has 7.9 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and h

eimsori [14]

Answer:

$912.68

Explanation:

Particulars Time PVF at 9.9% Amount Present Value

Cash Flows (Interest) 1.00 0.9099 79.00 71.88

Cash Flows (Interest) 2.00 0.8280 79.00 65.41

Cash Flows (Interest) 3.00 0.7534 79.00 59.52

Cash Flows (Interest) 4.00 0.6855 79.00 54.15

Cash Flows (Interest) 5.00 0.6238 79.00 49.28

Cash Flows (Interest) 6.00 0.5676 79.00 44.84

Cash flows (Maturity) 6.00 0.5676 1,000.00 567.60

Intrinsic Value of Bond or Current Bond Price $912.68

Thus, the Current bond price is $912.68

5 0

3 years ago

Complete problem: Total Net Operating Capital XYZ, Inc. reported $20 million in operating current assets, $25 million in net fix

Hitman42 [59]

Answer:

$14 million

Explanation:

Operating working capital = Operating current assets - Operating current liabilities

Operating working capital = $20 million - $6 million

Operating working capital = $14 million

The total net operating capital that XYZ, Inc. has is $14 million

7 0

3 years ago

Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution marg

a_sh-v [17]

Answer:

North Division:

Sales 154,000 12.8%

Variables Cost 101,640 8.44%

Contribution Margin 52,360 4.39%

South Division:

Sales 1,050,000 87.20%

Variables Cost 630,000 52.33%

Contribution Margin 420,000 34.84%

Total Contribution 472,360 39.23%

Fixed Cost 262,500 21.18%

Net Income 209,860 17.43%

Explanation:

First we do the income statements

then we add both sales figures together:

154,000 + 1,050,000 = 1,204,000

And add the percentajeof sales for each line

4 0

4 years ago

Jennifer’s Boutique has 2,100 shares outstanding at a market price per share of $26. Sally’s has 3,000 shares outstanding at a m

goldenfox [79]

Answer:

c. $57,100

Explanation:

The computation of the value of Jennifer’s Boutique to Sally is shown below:

= (Number of shares outstanding × market price per share) + (incremental value of the acquisition)

= 2,100 shares ×$26 + $2,500

= $54,600 + $2,500

= $57,100

We simply find out the market value and then added it to the incremental value of the acquisition

All other information which is given is not relevant. Hence, ignored it

4 0

3 years ago