Question: Please write a discussion based on this post I am choosing Nike as my company to discuss. Some of the important qualitative factors that the
I am choosing Nike as my company to discuss. Some of the important qualitative factors that the firm should consider when making a capital structure decision include customer satisfaction, products, employee morale and corporate culture. These are more difficult to assess but can be equally as important. Nike has a reputation to uphold and any negative publicity or influences on these qualitative factors can result in poor sales performance, decreased earnings and loss of market share. These do come into play when investing money and deciding the best use of funds. A company as large as Nike also has social responsibility and choosing the right investment funds can also be a part of fulfilling that responsibility. When it comes to larger investments, quantitative factors may play a more major role in the investment decision process, but with smaller investments, the qualitative factors can become more important. A chance for the larger corporation to really boost their reputations and instill goodwill. I think with smaller organizations, the qualitative factors may have a greater role than the larger organizations. Because their investments are typically smaller. Either way, a successful capital structure is balanced with a combination of equity and debt capital. Nike Stock: Capital Structure Analysis (investopedia.com)
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