Nike main source of finance

Read the information in the background material, look for more information, and then write a 2 to 3 page paper answering the following questions: Deferred ordinary shares are a form of ordinary shares, which are entitled to a dividend only after a certain date or if Nike main source of finance rise above a certain amount.

The redemption of loan stock Loan stock and debentures are usually redeemable. The arrears of dividend on cumulative preference shares must be paid before any dividend is paid to the ordinary shareholders.

The bank loans are often secured against business assets, and often range in amount according to the security and prospects of the business. Debentures are a form of loan stock, legally defined as the written acknowledgement of a debt incurred by a company, normally containing provisions about the payment of interest and the eventual repayment of capital.

Loan stock Loan stock is long-term debt capital raised by a company for which interest is paid, usually half yearly and at a fixed rate. Having known that there are many alternatives to finance or capital, a company can choose from. An offer for sale is a means of selling the shares of a company to the public.

What are the best sources of raising funds that the financial managers of the Nike Inc. All the sources of capital have different characteristics to suit different types of requirements. A loan may have a fixed rate of interest or a variable interest rate, so that the rate of interest charged will be adjusted every three, six, nine or twelve months in line with recent movements in the Base Lending Rate.

Security Loan stock and debentures will often be secured. The rate quoted is the gross rate, before tax. These sources of funds are used in different situations.

They are classified based on time period, ownership and control, and their source of generation. They are issued for a term of ten years or more, and perhaps 25 to 30 years.

A loan at a variable rate of interest is sometimes referred to as a floating rate loan.

They may be attractive to both lenders and borrowers when interest rates are volatile. Sources of capital are the most explorable area especially for the entrepreneurs who are about to start a new business. The time period is commonly classified into following three: Ownership and control classify sources of finance into owned capital and borrowed capital.

One way to expand globally is to open up new branches. It is perhaps the toughest part of all the efforts. However, dividend payments on preference shares are not tax deductible in the way that interest payments on debt are.Comprehensive income is the change in equity (net assets) of Nike Inc.

during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Internal and External Sources of Finance.

Sources of Funds for Nike Inc

All businesses need money. Where the money comes from is known as ‘sources of finance’. Now there are two different types of sources of finance: internal (finance from inside the business) and external (finance from outside the business).

New businesses starting up need money to invest in long. As of May 31, andNIKE's reserve balances for post-invoice sales discounts, returns and miscellaneous claims were $ million and $ million, respectively.

Source: Nike Inc., Annual Report. The best sources of raising funds for Nike's global expansion are two fold: debt financing or equity financing. In debt financing, Nike would have to borrow funds for the global expansion from the banks or domestic securities market.

Long-Term Sources of Finance Long-term financing means capital requirements for a period of more than 5 years to 10, 15, 20 years or maybe more depending on other factors. Capital expenditures in fixed assets like plant and machinery, land and building etc of a business are funded using long-term sources of finance.

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Nike main source of finance
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