Nike Cost of Capital Case

Lucent Technologies Inc. CHICAGO, April 24 (Reuters) - Struggling telecommunications equipment giant Lucent Technologies Inc. on Tuesday reported a $3.7 billion second-quarter loss, yet its stock surged as much as 22 percent on optimism its long-awaited turnaround could be near at hand. The company, based in Murray Hill, N.J., said the pro forma loss for the quarter, excluding restructuring charges and other one-time costs, was 37 cents a share, compared to a gain of 16 cents in the year-ago period. However, results improved 5 percent from a pro forma first-quarter loss of 39 cents. The company said in January its financial results would improve each quarter through the year. Lucent's stock surged as much as 22 percent, and was still up 13.37 percent, or $1.23, at $10.43 in Tuesday afternoon trading on the New York Stock Exchange.

Main purpose of this meeting was to communicate the new strategy to revitalize the company. Nike had seen her revenue stream stagnating since 1997 to a level of $9.0 billion. Within this time period, net income had been decreasing with $220 million to $580 million in 2001. Recent reports had shown that Nike’s market share in the U.S. Athletic Shoe market had fallen from 48% in 1997 to 42% in 2000.

My first cash flow equaled to 15.38%, second was also 15.38%, and the third one was 11.45%. To find the cash flow four, I used the CAPM approach. This formula is Ks=Krf + (Km-Krf)bs. I found beta on Value Line which was .95. The risk free rate was found by obtaining the current yield on a 20yr.

Investments INVESTMENT JOURNAL I started doing my research in the Microsoft Network using the Custom Search feature in the Stock Screener. Since I was looking for a conservative stock to start with, the first restriction I put was that the stock be a member of the Dow Jones Industrial Average. I also wanted a Large-Cap company so I put the Market Cap to be above 5 billion dollars. Another restriction I added was that its P/E ratio be the lowest possible and that the EPS Year to Year be above 13%. After running the search I got 20 matches.

Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying share for the fund she managed, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and most importantly, to communicate a strategy for revitalizing the company. Nike had maintained revenue of about 9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes had fallen from 48% since 1997 to 42% in 2000.

INTRODUCTION NorthPoint Large-Cap Fund, from the NorthPoint Group, invests mostly in Fortune 500 companies with an emphasis on value investing. Generally it invests in old-economy stocks and it has been doing really well in the past year of 2000 (return of 20.7% even as the S&P 500 fell 10.1%). Kimi Ford, a portfolio manager at NorthPoint Group is considering buying some shares for the fund, a week before she began her research Nike Inc. decided to host an analysts’ meeting to show their 2001 fiscal results. However this meeting had another purpose other than just providing information about their fiscal results, the meeting was also to communicate a new strategy to revitalize the company by developing more athletic-shoe products at a mid-price range. During the meeting, the company’s representatives stated that Nike’s revenues since 1997 have been around 9 billion dollars and net income had fallen in 2000, 220 million dollars.

Nonresidential The Philadelphia Federal Reserve’s Business Outlook Survey for the month of January came in at -20.9, it’s lowest number since October 2001(median of 0 versus 50 for PMI) 1. The index is closely watched in terms of early delivery and blend of manufacturing and business sectors and if a large percentage change occurs investors correlate similar changes to the PMI. The Dow Jones Industrial Average dropped 306 points on January 17, 2008 after the publishing of this report as investors concerns about growth weighed heavily on the market. On the other hand, the PMI for January came in at 50.7%, close to the 6 month average of 50.2%. (The following should be in consumption side?)

Amazon had a lower ROE in year 2013 compared to year 2010, which illustrated that every dollar shareholders invested generated lower net income. Morever, in 2012, both ROA and ROE were negative. The reason why Amazon’s profit decreased over recent four years is because that its cost of goods as a percentage of revenue increased. Amazon expanded its digital market to Asia and Europe, which led to a increasing in shipping and packaging cost. Comparing Amazon wi... ... middle of paper ... ...old these elements constant, the estimate Amazon’s stock price should be $286.41 to $387.2.

The firm has added $2 billion in new index assets since its initial reduction in fees. However, Fidelity's $10,000 minimum may put off some new investors. Condition: With Wall Street entering an era of slower earnings growth, every penny o... ... middle of paper ... ... market has also been rocked lately by several scandals involving improper mutual fund trading. Over the past year, a dozen mutual-fund companies have agreed to pay nearly $2 billion in fines. (not Vanguard) Fact Sheet Company name: The Vanguard Group Corporate headquarters: Valley Forge, Pennsylvania Founded: May 1, 1975 First fund: Wellington Fund (inception date: July 1, 1929) Offices: Valley Forge, Pennsylvania; Scottsdale, Arizona; Charlotte, North Carolina; Melbourne, Australia; Brussels, Belgium; Singapore; Tokyo, Japan Total assets: Approximately $850 billion in U.S. mutual funds (as of 05/31/2005) Number of funds: 130 domestic funds (including variable annuity portfolios); 35 additional funds in international markets Number of investors: 18 million institutional and individual shareholder accounts Chairman and CEO: John J. Brennan Number of employees (crew): More than 10,000 U.S.-based Largest fund: Vanguard® 500 Index Fund—$104 billion (Admiral™ and Investor share classes, as of 5/31/2005) Aggregate expense ratio: 0.23% (expenses as a percentage of 2004 average complex net assets) Mailing address: P.O.

In the same year, it quickly was sold out again and became one of the sixty daily newspapers under operations of MediaNews Group Inc. Economic Status Even though San Jose Mercury News is one of the forefronts who early adapted to digital revolution into its print, it still has been facing threat of declining revenues. Due to the economic, technological, and social factors, firm’s revenues have decreased significantly from print and classified advertising. Jobs advertising revenue, the most profit contributed to firm’s performance, dropped down from $118 million in 2000 to $18 million. (Shapiro, 2011) Purpose of Report This report provides a complete and thorough overview and analysis of San Jose Mercury News in the newspaper industry along with findings and final recommendations. Financial Health The San Jose Mercury News is trying to keep up.