Nike Project
WILMINGTON UNIVERSITY
COURSE TITLE: Advanced Financial Analysis
COURSE NUMBER: MBA 7294
FACULTY MEMBER: John Bish
STUDENT NAME:
Week #2 Case Study Nike
Case Study Analysis Papers grading rubric
Grading Criteria
Maximum Points
Define WACC and discuss how WACC is
calculated.
a. How is it calculated?
b. How can organizations utilize WACC within
capital budgeting and investment decisions?
2.5 pts
2.5 pts
Discuss how to use WACC within a capital
budgeting decision or investment decision?
Does this approach maximize shareholder
value?
7.5 pts
7.5 pts
Develop the WACC for Nike Corporation
a. What risk-free rate and risk premium did you
use to calculate the cost of equity?
b. How did you measure Nikes cost of debt?
c. Did you use arithmetic or geometric
averages to measure rates of return? Why?
15
15
10 pts
5 pts
Calculate the impact of an error in Nike
Corporations WACC;
if estimated WACC was 10%; and actual
WACC was 12% &
if estimated WACC was 10%; and actual
WACC was 8%?
Calculate the Value of Nike Shares
10
10
10
Proper spelling, punctuation, and APA
Formatting
5
Total
100
