FratFiles

• Save Paper

NIKE, INC.: COST OF CAPITAL

On July 5, 2001, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, pored over analysts' write-ups of Nike, Inc., the athletic-shoe manufacturer. Nike's share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed, the NorthPoint Large-Cap Fund, which invested mostly in Fortune 500 companies, with an emphasis on value investing. Its top holdings included ExxonMobil, General Motors, McDonald's, 3M, and other large-cap, generally old-economy stocks. While the stock market had declined over the last 18 months, the NorthPoint Large-Cap Fund had performed extremely well. In 2000, the fund earned a return of
20.7%, even as the S&P 500 fell 10.1%. At the end of June 2001, the fund's year-to-date returns stood at 6.4% versus −7.3% for the S&P 500.

Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to......

View the rest of this paper...

Approximate Word Count: 1616
Approximate Pages: 7 (250 words per double-spaced page)

Similar Essays

1. Nike- Case Analysis
   

   Nike- Case Analysis. Case Report - Nike Introduction Many of us know Nike for
   the clever maketing campaigns, celebrity athelets, "swoosh ...

2. Nike Case Study
   

   Nike Case Study. Introduction: This paper is a case study of Nike Inc. I
   will give a brief overview of the history, products, company ...

3. Nike Case Study
   

   Nike case study. "Nike is criticized for using sweatshops in countries
   like Indonesia and Mexico. The company has been subject to ...

4. Nike Case Study
   

   Nike Case Study. In this Case Study Analyses, an objective SWOT Analyses will
   be done to help identify potential strengths, weaknesses ...

5. Nike Case Study
   

   Nike case study. Nike transform into a market-oriented company after 1998. Prior
   to 1998 Nike gained market share based off of Nike name branding. ...