Ocalculate nike's weighted average cost of capital, we will need to calculate the proportions of debt and equity. you can use joanna cohen's memo (exhibit 5 in the case) as a model. skip the first section on single or multiple costs of capital. we'll accept her position that one cost of capital for the whole company is satisfactory. next she determines the relative proportions of debt and equity to use in the wacc calculation. the debt items on the balance sheet include the current portion of long-term debt, notes payable and long-term debt. see case exhibit 3. equity is either the total shareholders' equity number from the balance sheet (the 'book value') or the total market value of the stock outstanding. shares outstanding and the current price of nike common stock can be found on case exhibit 2. compare her ideas with information in the technical note, the cost of capital: principles and practice. are they in alignment? either justify her reasoning, or support your own direction, note your reasoning and any assumptions you have made, and determine the weights of debt and equity that you will use. this is similar to what we did in discussion question 2. what are the weights (proportions) of debt and equity for nike? the weights are in percentage form and must add up to 100%.

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving

Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. however, the company is also employing a segmentation strategy to separate customers within that focus. the strategy offers items at an entry-level price point for customers who desire to be like celebrities such as sarah jessica parker as well as couture items for those richest and celebrity customers. what strategy is burberry pursuing?

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be: