Essay about Mercury Athletic Footwear

In all honesty, to imagine myself in Jon Western’s shoes is very difficult. He was just a normal boy from North Dakota who hasn’t been exposed to raw, inhumane, and mass amounts of deaths in text and photos and is now doing this as a living. I would of taken the information with belief, but always making sure the sources are reliable. The tact I would of taken if I were Western would be emotional. I would want the superiors of action to see how life really is during this genocide and stories of the people who were affected. I would also want them to put themselves in the shoes of the victims.

General speaking, WACC is the rate that a company’s shareholders expect to be paid on average to finance its assets, and it is the overall required return on the firm as a whole. Therefore, company directors often use WACC to determine whether a financial decision is feasible or not. In this case, I will choose 9.38% as discount rate. The reason why I choose 9.38% as discount rate is because the estimated Debt/Equity is 26% under the assumptions by CFO Sheila Dowling, which is most close to 25% of Debt/Equity from the projected WACC schedule. There might be some flaws existing by using WACC as discount rate. As we know, the cost of debt would be raised significantly as the leverage increased. The investment will definitely increase the firm’s current debt. So, the cost of debt would not keep at 7.75%.

Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections.

The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.

Then we can use the following formula to calculate the WACC. The cost of debt is taken to be on an after tax basis to further to account for the depreciation tax shield.

Mercury is an appropriate target for AGI. AGI is looking to increase its revenue and profit by utilizing synergies. The initial aim of AGI for acquiring Mercury Athletics is to increase leverage with contract manufacturers and to boost the cooperation with the retailers and distributors. AGI was one of the most profitable and successful companies in the market segment, but the firm’s size re mained rather small in comparison with the main competitors. Therefore, with the acquisition of Mercury, AGI planned to build competitive advantage. Besides, the target company had well developed operation infrastructure, impressive labor facilities in China and numerous

I used WACC as the discount factor, we expect the rate of return to be higher than it, the same at least. The WACC reflects the average risk and overall capital structure of the entire firm [2]. It’s the required return and it presents how much the company pays for the capital it finances. In this case, the cost of equity is 10.33%, the cost of debt is 6.50%. I calculated WACC using those numbers and got a result of 8.49%.

c. Estimate the value of Mercury using a discounted cash flow approach and Liedtke’s base case projections.

Since this project is a going concern, the levered terminal and present values are calculated using the weight average cost of capital (WACC) as the discount rate, which we calculate to be 16.17%.

in our calculations, as this company exhibited dramatic value differences to others in the sample, (likely to skew our results and prove misleading). Using the average of the revised sample field for each ratio, we inserted Torrington’s values where appropriate to generate an entity value. The findings generated two values for Torrington, 606 million and 398 million. Taking the average of these two numbers, Torrington exhibited a relative value of 502.41 million. Because of the lack of related information given in the case, and the often large differences in measures amongst competitors, different capital structures, internal management strategies, there remained many unknowns in our model. We decided it would be best to use this valuation to reaffirm our assumptions in our DCF valuation. (Please see exhibits)

About 300 people die from ladder falls and 164,000 emergency calls are made each year. I’m Micah Velez, and i’m here to fix that problem. The Sky-High Shoes can get you to high places. It is useful because it helps short people reach high things, faster than ladders, it causes less injuries, and it saves

We used this calculation of WACC as our discount rate on the expected cash flows from the Winglets project.

As a child, my dream was to get on pointe shoes. I watched as ballerinas gracefully turned and leaped across the stage in the Nutcracker. I watched as Angelina from Angelina Ballerina laughed and smiled at the sight of her pointe shoes. However, it did not occur to me on how difficult and painful it would be at the same time.For 7 years, I have been training for my first pair of pointe shoes. Pointing and flexing, balancing and turning. At last, on the day of the evaluations, my teacher said four words that absolutely made my entire year.

My research has answered how each layer of a running shoe is designed in order to absorb ground reaction force and prevent injury. The design of running shoes requires a great deal of knowledge about the forces involved in the sport. The major force that needs to be taken into consideration when creating a new shoe is ground reaction force. This is a force that will always be present in running due to Newton’s second law of motion that states that for every action there is an equal and opposite reaction. Every time a runner’s foot hits the ground, the force is two to three times the person’s body weight. The shoe must be able to absorb that impact and even redirect its force and help the runner in addition to protecting.

The DuPont Method is a financial method that was first introduced by the DuPont Company in the 1970’s (Brooks, Callahan & Stetz, 2007). It is used to highlight how a company’s finances affect its return on investment. This assignment uses the DuPont Method to analyze the finances of Dick’s Sporting Goods Company. In addition, the results of the analysis are compared to imaginary industry standards. Based on the comparison, recommendations will be provided to ensure that Dick’s Sporting