User Account

All Pages

Is return on investment satisfactory for a nike and b

Assignment Help Finance Basics
Reference no: EM13480591

Key comparative figures ($ millions) for both NIKEand Reebokfollow:

Key Figures

NIKE

Reebok

Financing (liabilities equity)

$5,397.4

$1,756.1

Net income (profit) . . . . . .

399.6

135.1

Revenues (sales) . . . . . . .

9,553.1

3,637.4

Required:

a. What is the total amount of assets invested in (a) NIKE and (b) Reebok?

b. What is the return on investment for (a) NIKE and (b) Reebok? NIKE"s beginning assets equal $5,361.2 (in millions) and Reebok"s beginning assets equal $1,786.2 (in millions).

c. How much are expenses for (a) NIKE and (b) Reebok?

d. Is return on investment satisfactory for (a) NIKE and (b) Reebok [assume competitors average a 4% return?

e. What can you conclude about NIKE and Reebok from these computations?

Reference no: EM13480591

Questions Cloud

Beginning in the 19th century artistic movements carry the : question 1beginning in the 19th century artistic movements carry the suffix -ism to their name e.g. realism
A company borrowed 50000 cash from the bank and signed a : a company borrowed 50000 cash from the bank and signed a 6-year note at 7. the present value factor for an annuity for
Describe and evaluate the companys business strategy do you : refer to this companysannual reportfor its 2008 fiscal year. then answer the following questionsdescribe and evaluate
Installment notes payable that require periodic payments of : installment notes payable that require periodic payments of accrued interest plus equal amounts of principal result
Is return on investment satisfactory for a nike and b : key comparative figures millions for both nikeand reebokfollowkey figuresnikereebokfinancing liabilities
Explain your answer and identify one cost for each of the : use a selected company or your current work environment to identify at least one cost or expense that would fit under
Gain on the sale of an arrowhead collection acquired as an : morgan age 45 is single and provides more than 50 of the support of rosalyn a family friend flo a niece age 18 and
Wake up and smell the coffeearticle when evaluating : review the standard costs wake up and smell the coffee.article. when evaluating performance many organizations compare
Estimate ace cos value per share at the end of year 2002 : ace co. is to be taken over by beta ltd. at the end of year 2007. beta agrees to pay the shareholders of ace the book

Reviews

Write a Review

Finance Basics Questions & Answers

  Industry median cycles

Briefly describe why the Company's operating cycle and cash-to-cash cycle differs from the industry median cycles - Deriving days in inventory, cash to cash cycle and operating cycle using ratios

  What new forms of disintermediation have appeared in recent

What are the principle causes and possible cures of disintermediation in the finance industry? What new forms of disintermediation have appeared in recent years?

  When examining financial statements a note that describes

topic 1 contingencieswhen examining financial statements a note that describes contingencies should be reviewed closely

  What is the bond maturity

Yield to maturity. A (n)14-year bond for katy corp has a market price of $950 and par value of $1,000.If the bond has an annual interest rate of 9 percent, but pays semiannually.What is the bond maturity.

  What would be the tax paid on a new project

Suppose that a firm has a marginal tax rate of 44% and an average tax rate of 34%. What would be the tax paid on a new project that will contribute an additional $8781 to the firm's cash flow?

  Explain the scope and significance of the dividend policy

dividend policy-1. discuss the view that dividend policy is a more detail and has no impact on a firm to its

  Nonconstant growth valuation

Nonconstant Growth Valuation A company currently pays a dividend of $3.25 per share (D0 = $3.25). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 5% thereafter. The comp..

  The money market to cover the resulting shortfall in

studebaker is eligible to put 12000 before tax dollars each year into a tax deferred annuity tda. in order to invest

  Compute the return the firm should earn given its level of

a manager believes his firm will earn a 16.00 percent return next year. his firm has a beta of 1.23 the expected

  What is jowers cost of capital

If the cost of common equity for the firm is 20.2%, the cost of preferred stock is 11.7% and the before tax cost of debt is 10.9 %, what is Jowers cost of capital? The firm's tax rate is 34%. Round to 3 decimal places.

  How well did your hedge perform

Assume that interest rates in general increase by 200 basis points. How well did your hedge perform? c. What is a perfect hedge? Are any real-world hedges perfect? Explain.

  Calculation of net present value

Calculation of Net Present Value and What is the net present value of a project with the following cash flows and a required return of 12%

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd