Nike In Cost of Capital Case Study Example | Topics and Well Written Essays - 1000 words

Nike In Cost of Capital - Case Study Example From this paper, it is clear that a company’s cost of capital is used to a company since it evaluates the worth of an investment. The worth of an investment establishes the expected return on similar capital invested in an alternative investment. The cost of capital is not only required in making investment decisions but it is also used to make management decisions. Management decisions are based on financial implications and expectations of a company. The cost of capital determines financial expatiations of a company through capital and, therefore it is essential in making management decisions. A company’s cost of capital is, therefore, a useful tool in the decision-making process. I do not concur with Joanna Cohen’s value for WACC since it has considerable limitations. Cohen’s calculation also had some errors and hence the company cannot rely on the value to make critical financial decisions. Although Cohen’s calculation of Nike’s WACC was analytical, it has some weakness and hence inappropriate. In her calculations, Cohen weighted the capital structure based on book values. This was inappropriate since the company is a public liability company, and the values of its market capitalization have greater significance than the value of its book equity. Her Cost of debt was also wrongly calculated; Cohen obtained her cost of debt by determining the ratio between interest expense and interest-bearing debt. In some case, interest expenses contain expenses that are not covered or related to the company’s debt.’s debt. This might have introduced some errors in her final WACC value. Cohen also used 5.9% as her market premium this figure was significantly low. Cohen also obtained a wrong value for her WACC; this is because she weighted all her divisions using revenue instead of cash flow. This factor contributed to the margin between her WACC value and the expected value. Her calculation of weights also did not acc ommodate the different products that the company produces. This is because her weight did not consider all the footwear that Nike produces. Although the company makes most of its sales from sport shoes, other types of footwear contribute significantly to the sales of the company. WACC = Cost of Equity + Cost of Debt = (We) (Ke) + Wd (Kd) (1-t) Where Wd = loan capitals, We =finance from equity, Kd =bank’

Assessment Practices in Classroom Dissertation Example | Topics and Well Written Essays - 1000 words

Assessment Practices in Classroom - Dissertation Example The paper "Assessment Practices in Classroom" presents the discussion about the types of assessment practices that the author has observed in classrooms and if the teacher assistant helped with the assessment and if so, in what ways. The paper also describes and discusses the importance of curriculum-based assessment.In classrooms, teachers carry out different forms of assessment. There are two distinct types of assessments. The first one is summative while the other is formative. Educators use summative assessments to gauge whether the students are learning relative to the said content standards. Examples of such assessments that I have noticed in class are the end of term exams and the end of chapter tests. Formative assessment on the other end is instrumental in classroom practice that contributes to teaching while the students continue to learning. An example of such is the group and personal presentation that the students do time to time. The educator can identify the areas that the students have understood while the same time contributes to an area that he feels needs more understanding. Another key distinction between formative assessments from the latter is the participation of the students. Formative assessment can only be achieved with the involvement of students in the discussion. And the teacher assistant helped with the assessment especially during the discussion in classes. As the students presented their findings, the teacher assistant pointed out the areas that did not have enough research.