Friday, August 14, 2020
Greener Pastures The Launch of StaGreen
Greener Pastures The Launch of StaGreen Case Study: Greener Pastures: The Launch of StaGreen Greener Pastures The Launch of StaGreen Case Study: Greener Pastures: The Launch of StaGreen
Sunday, June 21, 2020
2014 Tips for the Columbia Supplement to the Common Application
What makes Columbia special? When I visited Columbia University, it was clear to me that the undergraduate college takes distinct pride in two things: the 100-year-old Core Curriculum and the University’s relationship with the city in which it resides.  The Columbia University supplement reflects those emphases.  As a prospective student, I encourage you to think about how these two components of the Columbia education fit with your educational goals. The Columbia supplement consists of several lists and three short answer questions.  For the quick questions about your interests, which ask you to list books, concerts, media that you have enjoyed over the past year, provide straightforward responses.  As an academically engaged student, there should be plenty of media and arts that have captured your attention.  Share both the mundane and the more unusual.  If you have a strong interest in a subject area, chances are your reading interests at least peripherally relate.  The Core Curriculum at Columbia includes humanities courses that focus on music and art in addition to literature, and the question about performances or exhibits dovetails with this component of the curriculum. These courses also take advantage of the rich opportunities available to students in New York City. The three 300 word responses are equally straightforward.  With each of these questions, remember to relate your answers to your own experiences and how they have impacted you. This year, Columbia is one of a number of colleges who have adapted the expand upon an extracurricular activity from previous versions of the Common Application.  The second question asks you to expand upon one of the books, artworks, or creative works you listed earlier in the supplement. The final response asks applicants what they consider most appealing about Columbia.  In answering this, you have so many options, including Columbias place as one of the few remaining colleges with a swim test (College only, not engineering) but think carefully about what makes Columbia special, including the integration of a strong campus center (the vast majority of students live on campus for four years) with the accessibility of the city and its commitment to a core curriculum.  There are many facets to Columbia that make it distinctive, and therefore, your short answers about your interest in Columbia should be specific.  If you feel that you need more information about Columbia and its programs, check the website for more information about their fall evening programs in cities around the United States. Columbia is a member of the Common Application, and does offer an early decision program for students who are confident that Columbia is their first choice. Accepted.com ~ Helping You Write Your Best
Sunday, May 24, 2020
A Modest Proposal Is Protesting - Free Essay Example
Sample details Pages: 2 Words: 491 Downloads: 7 Date added: 2019/05/08 Category Literature Essay Level High school Tags: Modest Proposal Essay Did you like this example?  Not everything an author writes is meant to be taken seriously. In Swifts A Modest Proposal he is using sarcasm and litotes to tell england they have to many poor people. This proposal is not meant to make fun of the poor people. Swifts purpose of A Modest Proposal was to show that what was being done to the irish people wasnt right . He was showing the people of Ireland that this is what they were allowing to happen to their people. The poor people were not getting any type of money while the rich people were getting more snobby. Swift uses breeders to refer to women. He is basically saying that they were not needed to do anything else but have baby they could eat. Some of the ideas in A Modest Proposal would confuse people if they didnt know that he was making a fun of how Ireland treats their poor people compared to their rich people. Don’t waste time! Our writers will create an original "A Modest Proposal Is Protesting" essay for you Create order A Modest Proposal is protesting the treatment of the poor people in Ireland by the English government. Swift says that the proposal is giving a solution to preventing the children of the poor people in Ireland from causing more issues in the country. When Swift uses the word modest in the title he is already introducing irony , because the proposal is crazy. You only need to read a few lines to realize that this proposal is not modest. The irony that swift shows throughout the proposal is recognized in the justification s of his arguments it is agreed by all parties that overpopulation of children is a problem that is an additional grievance to the current deplorable state of Ireland (line 230). So whoever could find out a fair, cheap, and easy method of making these children useful members of the commonwealth would deserve so well of the public as to have this statue set up a preserver of the nation (line 230). Further down the text you are able to understand the meaning of the pro posal. Swift also uses litotes for example I have not the least personal interest (line 290). Litotes is when a negative statement is used to conform a positive statement. The litotes in the story suggest that swift is actually concerned for the Irish people. The proposer aka the narrator is cold-hearted, and the ruthless of his logic. He represents the hypocrisy in the story. The narrator never gives away his identity. He is more interested in trying solving all of Irelands problems by suggesting that we eat children, A child will make two dishes at an entertainment for friends, and when the family dines alone, the fore and hind quarter will make a reasonable dish, and seasoned with a little pepper or salt will be very good boiled on the fourth day especially in the winter time (line 274). He is suggesting that if everyone eats the babies and the children that it will help to solve the poverty issues.
Monday, May 18, 2020
The Prevailing Message Throughout Sophocles Antigone And...
The prevailing message throughout Sophocles’ Antigone and King’s Letter from Birmingham Jail is that civil disobedience serves the purpose of fighting and correcting injustice in situations where systemic breaks in adherence to natural law occurs. Injustice here as used here is not to be synonymous with things that are simply unlawful or unfair, but instead takes on a deeper and more specific definition pertaining to the natural moral codes that all laws, as argued by King and Antigone, ought to be based upon. It is by this definition that both Antigone and King find reasoning; that civil disobedience is absolutely necessary as the final option one must take when dealing with systemic, top-down injustice. Where there is dissonance between†¦show more content†¦In lines 449-525, when Creon examines Antigone after the burial of her brother, Antigone plainly admits that she follows Zeus’ moral laws before Creon’s law, citing Zeus’ to be â€Å" unwritten and unshakable†and â€Å"forever†, which contrasts with Creon’s, which are ephemerally â€Å"for now or yesterday†. Antigone’s extremism typified in her willingness to die just to correct a single lapse in morality that exists within the law makes the importance placed upon founding law in morality as clear as it can possibly be. King’s Letter from Birmingham Jail is a near perfect articulation of his revolutionary ideas on the nature and purpose of civil disobedience. Like Antigone, King’s intent for civil disobedience is to mend a gap between legal and natural law. His reasoning is more specific and less idealized than Antigone’s, but at a basic level, it’s the same struggle to fight for morality in law that compels him to write this letter. King saw the (important to note) legally justified treatment of Blacks in America as a crime against humanity – similar in function to Creon’s decree and Antigone’s reaction thereafter. King saw civil disobedience as a last resort, but the only option in the face of a systemic break in the rule of law and natural law, speaking to a larger idea of the nature
Wednesday, May 13, 2020
Ethics Reflection Paper Str 581 Week 1 - 1312 Words
Running head: WEEK 1; ETHICS REFLECTIONS PAPER Assignment: Week 1; Ethics Reflections Paper By Judith Judson STR 591 – Phoenix Campus University of Phoenix Facilitator: Dr. Mark Kolesinsky Week 1, July 18, 2012 Ethics Reflection Paper In the last decade, ethics in corporate America has become highly publicized following the discovery of unethical and fraudulent business practices in major corporations. Practices at Tyco, Enron, Arthur Anderson, and WorldCom, among others, have made these corporate names synonymous with corporate fraud. The unethical behavior of top executives such as Bernard â€Å"Bernie†Madoff and Martha Stewart for example, have resulted in critical issues for companies and wide reaching job loss.†¦show more content†¦My ethical perspectives have evolved through my MBA curriculum by inspiring changes in my choices and behaviors. My awareness concerning ethical and social responsibilities has also changed. I have been educated about the magnitude of ethical demeanor and development of my guiding principles in addition to cultivating a positive societal image. Moral values and norms result in behaviors valued by the workplace and society. Based on my perspective, an individual should not demonstrate unethical actions for the sake of his or her vested interests. Practicing a moral approach demonstrates a commitment to critical social responsibilities. This also raises the question of altruism. Some people agree with the altruistic concept while others oppose the philosophy. Should individuals assume a sympathetic stance for the sole purpose of assisting others? Some take the sympathetic stance to the extreme of â€Å"carrying†others or taking on the responsibilities of others. In my view, practicing an ethical code of conduct is obligatory as well as giving consideration to the requests of external as well as internal stakeholders without assuming the responsibilities of others. Donating to the social welfare of society is crucial as individuals should not enact unethical behaviors that are destructive to others or society. To cheat [someone] for the benefit of anyone [others] is not an ethical or â€Å"right†Show MoreRelatedStr 581 Strategic Planning Implementation /Complete Class866 Words  | 4 PagesSTR 581 Strategic Planning Implementation /Complete Class Click Link below To Purchase: http://homework-aid.com/STR-581-Strategic-Planning-Implementation-Complete-Class-249.htm STR 581 Week 1 Individual Assignment: Ethics Reflection Paper Resources: Ethics Awareness Inventory and Ethical Choices in the Workplace assessments Use the Ethics Awareness Inventory and Ethical Choices in the Workplace assessments to revisit your personal and professional values. Write a paper of no moreRead MoreStrategic Management and Individual Assignment Essay2570 Words  | 11 PagesSYLLABUS STR/581 SYLLABUS SCHOOL OF BUSINESS STR/581 STRATEGIC PLANNING IMPLEMENTATION MAIN CHARLOTTE CAMPUS 04/01/2013 TO 05/06/2013 Copyright  © 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. COURSE DESCRIPTION THIS CAPSTONE COURSE INTEGRATES CONCEPTS FROM ALL PRIOR COURSES IN THE PROGRAM. STUDENTS APPLY THE CONCEPTS OF STRATEGIC PLANNING AND IMPLEMENTATION TO CREATE SUSTAINABLE, COMPETITIVE ADVANTAGE FOR AN ORGANIZATION. OTHER TOPICS INCLUDE ENVIRONMENTALRead MoreEthics Reflection Paper1082 Words  | 5 PagesEthics Reflection Paper Lourdes Munoz STR/581 Strategic Planning Implementation September 2nd, 2010 Gary Solomon Abstract Ethics and Social responsibility resides in an important set of our own personal values. When it comes to Business matter and operation the customer must feel confidence and this has been taken for granted several times on recent corporate scandals and collapses, a perfect example of missed conducted ethic and responsibility is Enron. Is extremely important for companiesRead MoreEssay on Apple Innovation Strategy2425 Words  | 10 Pages STR/581 Strategic Planning amp; Implementation Whenever there is any question including about what assignments are due, this syllabus is considered the ruling document. Point Values for Course Assignments                                                                                       ASSIGNMENTS | Points | Individual (90%) |  | Participation (All Six Weeks) 180 Pts | | Week 1 | 30 | Week 2 | 30 | Week 3 | 30 | Week 4 | 30 | Week 5 | 30 | Week 6 | 30 | Read MoreStr 581 Essay1954 Words  | 8 PagesValues Tasks †¢ Review the Week One Study Guide. †¢ Review the Capstone Examination Study Materials. Jul, 09 - Jul, 15 Objectives Mission, Vision, and Values 1.1 1.2 1.3 Identify major components of a strategic management process. Evaluate the organizations motivation strategy, innovation strategy, and people strategy. Explain the role of ethics and corporate responsibility in strategic planning. Required Learning Activities †¢ Strategic Management, Ch. 1 †¢ Strategic Management, Ch. 2Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words  | 1573 PagesOrganizational behavior / Stephen P. Robbins, Timothy A. Judge.  15th ed. p. cm. Includes indexes. ISBN-13: 978-0-13-283487-2 ISBN-10: 0-13-283487-1 1. Organizational behavior. I. Judge, Tim. II. Title. HD58.7.R62 2012 658.3â€â€dc23 2011038674 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-283487-1 ISBN 13: 978-0-13-283487-2 Brief Contents Preface xxii 1 2 Introduction 1 What Is Organizational Behavior? 3 The Individual 2 3 4 5 6 7 8 Diversity in Organizations 39 Attitudes and Job Satisfaction 69 EmotionsRead MoreHuman Resources Management150900 Words  | 604 PagesCHAPTER 1 Changing Nature of Human Resource Management After you have read this chapter, you should be able to: ââ€" Identify four major HR challenges currently facing organizations and managers. List and define each of the seven major categories of HR activities. Identify the three different roles of HR management. Discuss the three dimensions associated with HR management as a strategic business contributor. Explain why HR professionals and operating managers must view HR management as an
Wednesday, May 6, 2020
The Longitudinal Relationship Between Maltreatment And...
The primary purpose for conducting this present study was to examine the longitudinal relationship between maltreatment and parental neglect with the prevalence of obesity in children, represented by a representative sample from Houston. The study concluded that both maltreatment and parental neglect are both significantly correlated with the increased nature of childhood BMI measurements over time. Specifically, children that are exposed to a certain type of maltreatment and/or neglect have a greater rate of risk of attaining an increased BMI compared to the normal BMI of children their age as stated by the United States Department of Health and Human Services (HHS). Finally, the study found that if a child has experienced both maltreatment and parental neglect in unison, they are only related to affect the BMI at baseline; however, there is no effect on the rate of growth in the BMI. Two previous studies concluded that there was a cross-sectional relationship between childhood obesity and maltreatment (Lissau Sorensen, 1994; Whitaker et al., 2007). Also, there was a previous study that examined the relationship between neglect and maltreatment in a longitudinal study as well (Shin Miller, 2012). In that study it was found that children who were mistreated have BMIs that grow at significantly faster rates than those of non-mistreated children. Parental neglect was also related to increase BMI at baseline when it co-occurred with childhood physical abuse, a result thatShow MoreRelatedA Research On Parenting Aspects Of Military Connected Families And Their Children With Preschool Children1144 Words  | 5 Pagesliterature reveals both parent and child suffer emotional and physical problems in the midst of military deployment and reintegration (reunion period after deployment). Several studies compared internalizing and externalizing psychosocial behaviors betw een military children separated from their parent by deployment to children not separated from a parent in military or community families.6-8 One study reported children ages 3 to 5 have higher internalizing and externalizing scores during deploymentRead MoreThe Effect of Child Abuse on The Emotional Development of the Infant1229 Words  | 5 Pagesthe Emotional Development of the Infant to Five Years Old in the United States A Review of the Literature Child abuse is one of the most serious issues in the United States today. Child abuse is the physical, emotional/ psychological or sexual maltreatment of a minor. Neglecting a child is another type of abuse, and includes malnutrition, abandonment, and/or inadequate care of a child’s safety. Additionally, any neglectful act can lead to physical or emotional harm and in some cases death of a childRead MoreThe Effects Of Juvenile Delinquency On Teens864 Words  | 4 Pagesconduct by a juvenile characterized by antisocial behavior that is a beyond parental control and therefore subject to legal action; 2: a violation of law committed by a juvenile and not punishable by death or live imprisonment. (Cite). In this topic, I will explain more about family factors in which it has major influence on teens such as the way parents discipline a child, parental conflict or separation, parental abuse or neglect or criminal parents or siblings. What has causes children to act out? ItRead M oreAttachment in Developmental Psychology1796 Words  | 8 Pagesthe development of attachment disorders. Depressed mothers, parental divorce, and maltreatment situations have all been investigated to establish their connections to attachments disorders in children. By identifying the factors related to attachment disorders, the development of attachment disorders can be reduced by taking actions against these factors. Maternal Depression        A great deal of research has found a link between maternal depression and the appearance of attachment disordersRead MoreThe Relationship Between Child Maltreatment And Delinquency3358 Words  | 14 PagesJUVENILE DELINQUENCY AND DRUG USE Childhood Maltreatment and Delinquency By Ebele Udeogalanya St. John’s University CRM 119 Dr. Marquis R. White October 22nd 2014 I. Introduction and Justification This thesis proposal hopes to examine the relationship between child maltreatment in the form of physical abuse, psychological and emotional abuse, sexual abuse and neglect and subsequent juvenile delinquency as well as future adult criminal offending. Physical abuseRead MoreParental Punishment946 Words  | 4 Pagesdemographic features? (Taylor, Manganello, Lee, Rice, 2010). Many studies have been completed that have shown an affiliation between the two factors, the independent variable being a mother’s use of CP and the dependent variable being the index of the child’s aggression at age 5. This longitudinal study, with a small survey component, was investigated through the In-Home Longitudinal Study of Preschool-Aged Children, where four different batches of data were gathered. Those four batches consisted of theRead MoreEffects of Child Abuse on Juvenile Delinquency4283 Words  | 18 Pagesthat a correlation exists between the effects of child abuse and delinquency. Common problematic behaviors are socialization changes and learning abilities from early childhood to adolescence. Studies indicated correlations along with social theories such as the Social Control Theory which is dominant in explaining the relevance of these correlations. Researchers have developed programs such as early intervention and prevention programs to prevent child abuse and neglect since they are risk factorsRead MoreUnderstanding Juvenile Delinquency in the United States2225 Words  | 9 PagesStatistics show that in the United States, there were more than 4,000 arrests â€Å"for every 100,000 youths†between the ages of 10 and 17 in 2011 (USDOJJDP, 2011a). Juvenile delinquency is defined by Webster’s dictionary as â€Å"conduct by a juvenile characterized by antisocial behavior that is beyond parental control and therefore subject to legal action†(â€Å"Juvenile delinquency,†n.d.). A number of jurisdictions have been exerting effort to prevent minor offenders from involvement in the juvenile delinquencyRead MoreThe Epidemic of Alcohol Use Disorder (AUD) 2524 Words  | 11 PagesTrocmà ¨ et al., 2010 previously indicated that patients with maltreatment and AUDs were more susceptible to disorder because abusive parents often have AUDs. The study in review is Goldstein, et al., titled â€Å"Childhood Maltreatment, Alcohol Use Disorders and Treatment Utilization in a National Sample of Emerging Adults,†sought out to directly relate AUDs and childhood maltreatment by eliminating certain variables as factors, such as parental h istory of AUD, noted by the previous study Trocmà © et al.Read MoreWhile Children’S Delinquency Has Been Tied To A Wide Variety1029 Words  | 5 Pagesfathers than mothers. Rising rates of parents being incarcerated have led to an increasing number of children affected by paternal imprisonment. The number of parents in state and federal prisons with children under the age of 18 more than doubled between 1986 and 1997; rising from 273,045 in 1986 to 637,309 in 1997†(Johnson Waldfogel, 2002). Approximately 600,00 children (about 10 in every 1,000 U.S children) had a parent in state or federal prison in 1986, compared to over 1.3 million children
Nike, Inc. Case Study Free Essays
string(92) " number of days since the last payment, 173, from the number of days in the period, 182 = \." Nike Valuation At North Point Group we believe we have developed the formula for investing success. As you know better than anyone, our Large-cap fund has exceeded all possible expectations in recent years as it outperformed the SP 500 by 30% with respect to returns in 2000 and has continued the trend into 2001; as of the end of June 2001 it has already produced returns of 6. 4% while the SP 500 has continued to struggle producing a return of -7. We will write a custom essay sample on Nike, Inc. Case Study or any similar topic only for you Order Now 3%. We believe these results are made possible by our â€Å"workhorses†of the market as we like to call them. For those of you that don’t know these â€Å"workhorses†are our holdings in companies that have been there through the history of modern America. These companies are those such as 3M, General Motors, McDonalds, and ExxonMobil, which have gone through the many roller-coaster type rises and falls that defines our nation’s economy and has utilized these experiences to prosper and grow step for step with our nation. We are here today to share and discuss our recent findings in our search for another candidate worthy of investment from our Large-Cap Fund. The company originally named â€Å"Blue Ribbon Sports,†now Nike Inc. has caught our attention. Initially known for their athletic performance shoes, Nike has developed itself into a sporting good and apparel monster while maintaining their domination in the athletic shoe sector over the last fifty years. In 1997, Nike reached the top of their game in terms of revenue, when they reported $9 billion in revenues in their annual report; however, since then their revenues have been at a virtual stand-still, hovering around $9 billion for the past five years. Despite their lack of improvement in the last half-decade we see progress in their near future, especially with them already well into the stage of recognizing problem issues within the company. They have realized that one of their major issues is that which made them into what they are today, their athletic shoes. They have maintained a large share of the athletic shoe market throughout their history but they have only just recently noticed that this share is slowly diminishing through time, as it has dropped six percent from 1997 to 2000. After taking a step back and looking at the big picture they realized their error in the recent past, they have placed too much of their focus on producing high-end, high-priced athletic shoes and have forgotten about the mid-priced shoes segment which fueled their growth for decades, and yet still remained the producer of 30% of their revenues. This focus will help bring the Nike brand shoe back into the homes of any American home no matter their income level. Along with their shoes, Nike has other plans to rejuvenate their corporate performance. The biggest of all was the acquisition of top exec, the former president and chief executive of the Polo Jeans division of rival Jones Apparel Group, Mindy Grossman. Nike sought out Ms. Grossman because of her exceptional performance in the clothing industry in hopes that she would take their apparel division to the top; a result which is not far beyond belief when considering the vast resources and influence that Nike already possesses. The hopes within the company are that these tweaks to their corporate approach along with some minor cost cutting adjustments in the company’s operations and administration will drive the company up the incline of revenue growth. With Nike reigniting their pursuit for excellence and fueling this fire by restoring their staple, mid-priced athletic shoes fit for every American, to its glory; it’s easy to believe in the potential of Nike, Inc. and jump on the bandwagon. Even though we believe in the potential of Nike, further financial evaluation is necessary before a decision affecting everyone in this room can be made. We got excited about the prospect of Nike becoming part of our fund not because of the name, and the reputation it carries with it, but because of their remarkable success through numerous decades and varying economic conditions. These factors paired with their current economic struggles and the impact those on the market price of Nike makes them a prime value investing candidate. WACC: We choose the weighted average cost of capital to use as our discount rate. We did this because we calculated future cash flows using the free cash flow to the firm method. By using this method we are able to account for the total free cash flows available to the owners after all expenses. This means that debt is accounted for in the intrinsic value of the company. In order to compute the WACC the following inputs must be calculated; cost of equity, after tax cost of debt, weight of equity and weight of debt. In this section of the analysis we will give a step by step breakdown of how we computed those inputs. Cost of Debt: The cost of debt is rate at which a company pays on its current outstanding debt. This rate is comprised of things like loans or bonds. Nike conveniently has only one issue of publicly traded debt. This is a bond that pays a 6. 75% coupon semi-annually. It was issued on 7/15/10 and is mature on 7/15/21. The current market price is $95. 60. To calculate the cost of debt we found the YTM of the only current outstanding bond issue. As of today we are nine days away from a coupon payment on 7/15/01. After this coupon payment there will be 40 more coupon payments. We are making the assumption that a coupon is paid on the date of maturity. As stated the price of the bond listed today is $95. 60. If the bond were actually to be bought and sold the price would need to reflect the interest accrued since the last coupon payment. To calculate this we subtracted the number of days since the last payment, 173, from the number of days in the period, 182 = . You read "Nike, Inc. Case Study" in category "Free Case study samples" 95. We then took that number and multiplied it by the coupon payment divided by 2 in order to realize the coupon payment per period. (6. 75/2)= 3. 375(. 95) = $3. 2. Based on these calculations we have calculated the following inputs to solve for the YTM. Cost of Equity: The cost of equity is the return that stockholders require to invest in a company. There are many different ways to compute this value. We will look at CAPM, DDM and the earnings capitalization ratio. CAPM: We looked at two different ways to calculate CAPM. First using the 3 month T-Bill as a risk free rate (3. 59%) along with the arithmetic average of returns from 1926-1999 (7. 50%) to calculate the market risk premium. We used a beta of . 8 which is the average of the last 6 years. We believe this to be a good estimate because it accounts for volatility and decreased possible variance. Below is our calculation for the cost of equity. In the alternative CAPM model we used the 10 year Treasury bond as the risk free rate instead of the 3 month. We also used the geometric average of historical returns as the market risk premium. Below is the estimation of the alternative Cost of Equity. We believe that the second calculation of the CAPM using the 10 year bond and the geometric average is a more accurate representation of the cost of equity. The 10 year bond rate is a better indication of the real risk free rate since the fund is looking at value stocks which are generally held for longer periods of time. The geometric mean is also a more realistic calculation of the market risk premium because it calculated real return, as opposed to the arithmetic average which is just a straight average calculation. DDM: The calculation of the dividend discount model required a dividend growth rate and the current stock price. We obtained the dividend growth rate of 5. 5% from Valueline. The current share price is $42. 09. The calculation of the cost of capital using the DDM is below. The dividend discount model works best with companies that follow the constant slow growth path. This is because their dividends are generally a good reflection of earnings. Since Nike is not a slow growing company and their dividends are not highly correlated with changes in earnings we do not recommend using the DDM to estimate the cost of equity. Earnings Capitalization Rate: The earnings cap rate is the opposite of the P/E ratio. The inputs include an implicit growth rate which we calculated by multiplying current ROE by the current retention ratio of earnings. This growth rate is used to project EPS for the next year. The inputs and calculation of the cost of equity is shown below. The earnings capitalization ratio is not a good estimate of the cost of equity for the same reason the DDM was not a good model. This is because the retention ratio and the dividend payout ratio are dependent on each other. Since the dividend payout ratio is not a good indication of earnings than neither is a model that uses the retention ratio. Value of Debt: To effectively calculate the value of debt we used the market value of debt instead of the book value. This gives a better approximation of the current value of the debt. To calculate the market value we discounted the LT debt value that we obtained from the balance sheet. Below are the inputs and the present value of the LT debt. In addition to the market value of long term debt we need to add short term debt. This includes the current LT debt payment and the notes payable as found on the 2001 balance sheet. After adding these values we obtained the total market value of debt. Value of Equity: To find the value of the equity we used the market value of the current equity instead of using the book value. The market equity is calculated by multiplying the current number of shares by the current market price. Calculation is shown below. Capital Structure: Based on the market value of the debt and equity we calculated the capital structure. The numbers are shown below. {draw:frame} {draw:frame} WACC Calculation: To calculate the WACC we combined the weights of equity and value with the cost of each. The equation is as follows: {draw:line} {draw:line} {draw:line} {draw:line} (11,503/12,550) X 3. 42% + (1,047/12,550) X 2. 12% = 9. 44% {draw:custom-shape} {draw:custom-shape} {draw:custom-shape} {draw:custom-shape} Discounted Cash Flow Analysis: Revenue: To have a better estimate of Nike’s current condition, we calculated its discounted cash flow in order to find its NPV and a more realistic measure of Nike’s share price. We estimate that in the next 10 years Nike will have a revenue growth ranging from 6 to 7 percent. In 2002, revenue growth is projected to be at 7 percent. From 2003 to 2005, revenue growth will be 6. 5 percent. In the last 6 years of the forecast, Nike will experience a growth rate of 6 percent. The rationale behind this sales growth forecast is that Nike will be developing more midpriced shoes and increasing its apparel line. The midpriced shoes will offer consumers more affordable selection so sales are likely to increase. Nike’s plan to push its apparel line is also a good strategy to increase sales because athletic apparel is a good complementary to their shoes. Revenue growth will kick off with a good start but it’s projected to fall slightly to a more sustainable growth rate. COGS, SGA: As Nike’s sales rate slowly declines in the next 10 years, their percentage of Cost of Goods Sold over Sales and Selling, General Administrative percentage also decline. Nike plans to cut costs in the next 10 years. So as their costs decrease and sales increase, their percentage of COGS and SGA to sales will decrease. NWC: Next, we calculated Nike’s change in net working capital. Net working capital is current assets minus current liabilities. To do this, we took the average of Nike’s asset in percentage to sales and liabilities over sales for the last 4 years. (Refer to Exhibit A). We then take those numbers and multiply it by the projected revenue to get the project current assets and current liabilities for the next 10 years. We took the difference to get the net working capital. The change in net working capital would be just the difference of one year to the next. Exhibit A. CAPEX, net Depr: We calculated the Capital Expenditure and depreciation using a similar model. The 2001 Nike annual report gave us some guidance that CAPEX would not increase in 2002 from the previous year. Based on an increasing cost of depreciation we forecasted 2002 CAPEX net Depr. to be $120 million. Using this projected 2002 value and the three years previous we calculated an average CAPEX net Depr. (See Exhibit B) We feel this average is the best way to estimate an unpredictable CAPEX number. We used this average in our forecasts through 2011. Exhibit B. Free Cash Flow: After we attain all the CAPEX and the change in NWC, we were able to do a ash flow by taking our net operating income after tax less CAPEX and NWC. For our terminal value, we used the Gordon growth model with a 3 percent growth rate. In our terminal value, we added back the CAPEX value because capital expenditure will eventually be zero in the future. We feel that it won’t be accurate to have a negative value for CAPEX fo r our terminal value. After calculating the future cash flows for Nike, we were able to find the intrinsic value of the company. Using our WACC of 9. 44 percent, we attained a NPV of $15,963 million. During this time, Nike had a current debt balance of about $1,047 million. We subtracted the debt from the NPV to get an equity value for the company of about $14,916 million. We took Nike’s equity value and divided by their total number of shares outstanding of 273. 3 for 2001 and got a price of $54. 58. Compared to the current market price of Nike’s stock of only $42. 09, Nike’s stock is undervalued by almost 30 percent. Based on our new estimates of Nike’s value, we think that these numbers reflect the company better than what the market says. We also did a sensitivity analysis of Nike’s stock using various discount rates. We can see that even at a discount rate of 12 percent, Nike’s stock would be $44. 7. This is still about $2 more than what the market valued Nike. Conclusion: Knowing that our key to success has been a value investing approach to Large-Cap mutual funds, it is easy to see that we are recommending the investment in Nike, Inc. on the basis of the findings of our financial analysis, which reports t he company as undervalued by over 29%. Essentially we are saying that according to our best analysis we believe that the company should be valued by the market at a price 29% higher than it currently is. In terms of stock price this is saying that although Nike is currently selling at $42. 9 we believe it should be priced at $54. 58. It is easy to figure out how this creates value for you as investors as long as Nike stays true to form and true to their word. We do not see the powers that be letting Nike die; they recommitted themselves and the company to excellence and have taken appropriate action to signify their sincerity. Their modifications to expenses in combination with their push of apparel and shoes, which despite its decline in market share is responsible for 30% of Nike’s revenues, will bring Nike out of their current slump. They will ake this happen over time by slowly working down expenses, in particular cost of goods sold and selling and administration expense, while working to increase revenues. We feel very strongly on the accuracy of both our analytical and corporate analysis in part because despite increasing selling and administrative expenses and fluctuating revenues Nike has ended each fiscal year for the last few years with a positive economic value added result. Over the past three years Nike has ended with an average EVA of $387 million, showing that they can go above and beyond market and investor expectations even while in a slump. How to cite Nike, Inc. Case Study, Free Case study samples
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