NIKE
Sources of Funds
What are the best sources of raising funds that the financial managers of the Nike Inc. can use? Why?
In contrast to smaller entities, larger corporations often have far more available sources of revenue from which to raise capital. Instead of borrowing from the bank, seeking angel investors, or asking for help from friends and families, corporations can sell bonds: a "bond is a written promise to pay back a specific amount of money at a certain date or dates in the future. In the interim, bondholders receive interest payments at fixed rates on specified dates. Holders can sell bonds to someone else before they are due" (How corporations raise capital, 2013, U.S. Department of State). Many investors prefer bonds because of the greater security they offer as investments, even though the rate of return is lower.
Unlike stocks, if a company experiences financial difficulties, because the bond is a loan, the bond owner must be paid. This requirement can also make issuing bonds difficult even for small corporations but for a large corporation like Nike bonds have many advantages. "Bonds are desirable for the company because the interest rate is lower than in most other types of borrowing. Also, interest paid on...
Fidelity Large Cap Stock Fund is a domestic equity fund, comprised of 91% domestics and 9% international equities. As such it is not intended to mirror the performance of either the Dow or S&P 500, but to serve as a competitor product. The foreign stocks are mostly from the UK, Canada, Israel and Ireland. The fund has very little foreign exchange exposure, with 95.91% of the stocks denominated in the
Alternative Sources of Funding in Special Education In the U.S., educators have various avenues at their disposal with which they can source funds with the aim of ensuring that needy children get the necessary support while in school. Previously, a lot of the funding comes from local foundations that help schools manage to provide care to the children with disabilities across the nation. The RGK Foundation is one of the organizations
CFO IBM. You successful years, concerned sources funds, cost funds. With changing business conditions, costs . At IBM, issued $100,000,000 Corporate Bonds carry a 6% interest rate, $200,000,000 Equity offers a 10% dividend, $100,000,000 Retained Earnings opportunity cost 9%. The cost of capital at IBM IBM is one of the oldest and most prosperous companies within the technological community. The organization has led the industry through innovation, which has in turn
Funds One of the most important decisions that businesses have to make when sourcing for funds is whether to use equity or debt financing. Debt and equity financing happen to be the primary sources of capital for entities. In this text, I discuss these sources of financing in significant detail. In so doing, I will amongst other things highlight the main differences between them as well as the various business
funds has its own advantages and disadvantages. In that regard therefore, debt financing could in some instances be more appropriate than equity financing. The reverse is true. This text concerns itself with some of the benefits FedEx Corporation would experience were it to raise funds through debt. The text also highlights some of the drawbacks of such a move. Debt Financing: Focus on FedEx FedEx, as it points out on its
As mentioned before, Amarin was sold for approximately 28% profit, and six of the remaining ten U.S. investments were all up at least 5% with a range of 4-16% profitability. The four U.S. investments that declined averaged 10% with the largest being General Motors with a decline of approximately 23%. General Motors was affected by industry risk, when the entire automotive industry was perceived as losing sales due to the mortgage
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