Get a unique, high-quality and non-plagiarized paper from us today at the most affordable price
Email us : premieredtutorials@gmail.com

Under Armour, Inc. (UA) is a sportswear company engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for consumers

Under Armour, Inc. (UA) is a sportswear company engaged in the development, marketing and distribution of branded performance apparel, footwear and accessories for consumers
UA has been exploring a proprietary new fabric technology that offers many advantages over current fabrics to include: waterproof, breathable, low cost and easily recyclable. If successful, the company believes the fabric could be used in a wide range of products to include shoes, shirts, shorts, etc. UA has some concerns about the fabrics durability and is considering bringing it to market in a casual athletic shoe (avoids regular washing that shirt / shorts would have to endure and avoiding specific specifications required of performance footwear). UA has already invested $15 million in research and $5M in test marketing and believes their product will be competitive with product offerings from other companies. You have been approached by the president of the company to analyze the proposed project and make a recommendation on whether UA should launch the initial line of athletic shoes with the new fabric or not.
In the current year 2.5 billion pairs of shoes are expected to be sold in the United States and forecast to grow at 3% per year. Of that total, 15% of the sales are classified as athletic shoes. UA expects its new product to get a 1% share of the athletic shoe market in the first year of sales and that share will grow by 0.5% each year. UA’s first product line is expected to be sold for 5 years, in the 6th year UA plans to transition to a second generation of shoes as well as explore other possibilities for the new fabric. In that 6th year half of the sales are expected to be comprised of the initial product line and the other half comprised of the second generation. Athletic shoe prices currently average $65 / pair and are expected to increase in price by 2% per year. The company is fairly confident in most of its projections, but market share and price are the two items with the most variability.
The variable cost of goods sold is forecast to be $42 / pair at time of product launch and is forecast to decrease by 2% / year as the company gains experience with the manufacturing process. Selling, general and administrative expenses are expected to be 35% of sales.
Prior to launching the new fabric technology, UA will need to spend an additional $70 million on R&D over the next two years (2016 and 2017) to complete development the new fabric technology ($35M each year), $15 million on test marketing and $120M on capital equipment to support the manufacturing process. The equipment purchase and test marketing will be done one year prior to the start of sales. The equipment will be depreciated using the seven year MACRS schedule. The equipment will have a $25 million salvage value after all sales of the initial product line have been completed. Also, the company will need to invest $30 million in inventory prior to the first year of sales. Once sales begin the company will plan to maintain 40 days of accounts receivable, 90 days of inventory and 35 days of accounts payable.
The corporate tax rate is 40%.
To establish a discount rate, please estimate UA’s estimated weighted average cost of capital (WACC). UA hasn’t previously developed its own fabric technology, but Columbia Sportswear (COLM) and VF Corp (VFC) have so please use those two companies to estimate Beta under the pure play (industry) approach.
In your recommendation please include the payback period, NPV, IRR, and MIRR. Also include an analysis to assess potential risk.
In estimating the WACC for UA, be sure to describe the sources of capital the firm uses to finance operations. Include specific assumptions that support the calculations for: cost of debt, cost of equity, market values of debt and equity. To be consistent, please refer to UA’s 2015 10K filing for its financial statements and current capital structure. Please include a definition of WACC and why it is relevant to the firm.
To estimate the weighted average cost of capital you will need to:
 Utilize the Capital Asset Pricing Model to estimate the cost of equity: o Risk Free Rate: The proxy for the Risk Free Rate should be a US Treasury note bond o Beta: To estimate beta you can utilize published betas which can be found at a variety of finance sites to include: Morningstar, Yahoo! Finance, Google Finance and databases available at the PSU Library and / or calculate your own estimate of beta. o Market Risk Premium: Decide on an appropriate approach to estimate the Market Risk Premium and incorporate the necessary assumptions.
 Utilize the after tax yield to maturity of debt for the company to estimate the cost of debt: o A company will often have multiple bonds outstanding at any one time. If so, calculate a weighted average YTM for the bonds outstanding. o A list of bonds outstanding can be found in the company’s 10Q or 10K o The current pricing and YTM on publically traded bonds
Note: if the debt is not publicly traded, the cost of debt may be estimated by:
 Company disclosures in their financial statements and notes, or  Using the default spread methodology, or  Observing the YTM from companies of similar risk
 Financing weights. Calculate the market value of debt and equity. The value of debt plus equity is equal to the overall value of the firm. Based on the values of debt and equity you can calculate the weights of each type financing. For this case, please use the market value weights to estimate the weighted average cost of capital. o The market value of equity is also known as market capitalization and can be determined by finding the current stock price per share and multiplying it by the number of shares outstanding. o The market value of debt can be calculated from the bond site listed above. o Market prices of bonds are often quoted as a percentage of par value. For example, if a bonds current price is 110, it is currently trading at 110% of par. o The book values of debt and equity can be obtained from the company’s balance sheet.
Papers should be between 4-5 pages in length (line spacing between 1 – 1.5) plus any exhibits in an appendix.

Place your order now for a similar paper and have exceptional work written by our team of experts to guarantee you A Results

Why Choose US   

    6+ years experience on custom writing
    80% Return Client
    Urgent 2 Hrs Delivery
    Your Privacy Guaranteed
    Unlimited Free Revisions

Looking for a similar assignment. Place your order for a similar paper now and have excellent work written by our team of professionals to ensure you acquire the best grades.

If you find it difficult to balance your work and your studies because you are overwhelmed by other responsibilities, you have come to the right place . With the help of our dependable and simple-to-use essay and research writing service, students are able to focus on work or non-academic-related duties that they are required to carry out and complete all their school work on time .

We assist students who are struggling with their academic endeavors by allowing them to obtain essay assistance from  professional essay writers. We are never late for a deadline. When you ask our writer to write your paper, the assignment can be completed in as little as 12 hours or as long as 2 weeks. The order’s deadline is entirely up to you. 

Place an order of your assignment if you are in urgent need of assistance because your essay is due in a few hours/days or you do not know how to complete your professor’s academic assignment. We are here to assist you. You are guaranteed of high grades through our services. 

How to Place an Order 

When you want Premiered Tutorials to do your homework for you, you send the assignment details such as the instructions, due date/deadline, number of pages and college level to the customer support agent online on live chat,  fill in the assignment details at place an order or send the information to our email address premieredtutorials@gmail.com and a customer support agent will respond to you immediately. 

Premiered Tutorials has competent writers to handle any of your assignments. Once you place your order, we choose for you the best and competent writer for your assignment based on each writer’s competence in handling a subject. 

When the homework is completed, we have a quality assurance team that proofreads the assignment to ensure it meets the required rubric instructions from your professor.

After thorough review of your assignment, we send the paper to the client. In case you need any changes at this point, you can let us know so that we can handle it for you at no extra charge. 

Why Premiered Tutorials?

If you need professional online homework help at a cheap price from professional and thoroughly vetted online homework helpers, reach out to the best homework help website, Premiered Tutorials.

Whether you are in high school, undergraduate, masters or PhD level, we have the best academic writers to assist you with your homework. We thoroughly vet all our online homework helpers to ensure they are competent to handle our clients’ tasks. Some of the requirements we have is ensuring that they are English Native speakers, have all attended colleges and had high grades in their undergraduate, Masters and PhD classes and have worked as academic writers and delivered high results.

We are a reliable and best essay writing website in the market. Our assignment help services or rather what our clients ask us to do for them include take my online class for me, order an essay cheap, pay someone to write my essay, help with my assignments, history homework help, college homework help, essay writing help online, answers for your homework, pay someone to do my homework for me, homework answers math, pay someone to take my proctored exams and nursing homework assignment help online. As the best website for homework answers, our homework doers also offer cheap essay writing services, online assignment help for all classes

  • Law/ Criminal Law
  • Nursing
  • Information Technology
  • Psychology
  • Business
  • Statistics
  • Sociology
  • History
  • Communication
  • Culture and Society
  • Biology
  • Astronomy
  • Engineering

The courses indicated above are just but a small group of the types of classes Premiered Tutorials handles.

We have competent homework writers that can handle all academic disciplines regardless of the level of education of our clients.

  When we do your homework for you, we write it from scratch to ensure you receive a unique paper. It also ensures that every homework we do for you is free from plagiarism and will help the client to get the highest grades in his or her classes. Any client who manages to consistently use our homework help services is guaranteed of always having the best grades and being one of the top students in the class because we always deliver the best quality for any homework we do for you.

When we complete working on your homework, we deliver the paper to you on time as we are well aware that the work we handle, is time sensitive. Timely deliveries of assignments help our clients get the highest grades because missed deadlines on assignments can result to deductions of marks for late submissions. Therefore, you will always be assured of quality online homework help through Premiered Tutorials whenever you ask us to do your homework for you.

Homework Help Website

Why we should write your Paper 

  1. Money Return guarantee
  2. 0% Plagiarism Rate
  3. Guaranteed Privacy
  4. Written from scratch by highly qualified writers 
  5. Communication at Any Time (24/7)
  6. Flexible Pricing and Great Discount Programs
  7. Timely Deliveries
  8. Free Amendments

Statistics about Us

130 New Projects
235 Projects in Progress
315 Inquiries
420 Repeat clients

© 2021 Premiered Tutorials
All rights reserved. We provide online custom written papers, such as term papers, research papers, thesis papers, essays, dissertations and other custom writing services.

All papers inclusive of research material are strictly intended to be used for research and study purposes only. Premiered Tutorials does not support or condone plagiarism in any form. These custom papers should be used with proper reference.

Place an Order
error: Content is protected !!