A Capital Structure Analysis for Nike

Dominick Monsorno

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.ACCOUNTING

Faculty Research Mentor: Kakolyris, Andreas  

Abstract:

Throughout this project, we will be showing the capital structure analysis of Nike by finding various points about the company. We explored how the weighted average of cost of capital through Nike and how they manage their value. Nike is one of the biggest companies in the world, known for their support for the many athletes around the world. Using the financial data that we found from Bloomberg terminal, we were able to assess how Nike puts a fine line between their debt and financing through other companies. Findings show that different beta numbers from different risk factors that may be present, although findings show that Nike has a steady income and manages their finances well. Capital structure and its impact on a firm's cost of capital is debated in the industry due to many companies thinking of restructuring due to the amount of success or losses they have. Our findings are presented and analyzed to show that risk factors will not affect how much the company is worth.