The questions are prsented below and the company to study is Nike Inc.
Select a Multinational Corporation (MNC) and discuss the following:
1. Discuss the MNC's foreign investments
2. Describe any foreign financing currently in place. Also discuss prior foreign financing. What are the reasons that the MNC utilized foreign financing?
3. Discuss successes and failures related to the MNC's foreign operations.
4. Discuss the MNC's reasons to invest overseas.
5. Calculate the MNC's cost of capital including the Cost of Equity and Cost of Debt. State any assumptions utilized in the calculation. For Cost of Equity use the CAPM (Capital Asset Pricing Model). For Cost of Debt, please calculate the Cost of Debt after tax.
6. Discuss how the MNC conducts its' international cash management program.
7. Discuss any risks that the MNC faces in countries that it operates in.
Your answers to the above questions should include at least 5 pages of narrative plus any charts and graphs that you would like to supply to support your narrative. Your answers must be single-spaced, using size 11 font.
Attachment:- Nike_Inc_Cost_of_Capital.xlsx