Financial Analysis

Financial Analysis

Question 1

If I have the option of picking up one company to had merger with Nike, then I would go for Dicks sporting goods. There are number of reason for it, however the main reason two reason are the market which Dicks sporting cater and the overall size of the company, which is less than that of Nike. Dicks Sporting Goods (DSG) follows a store-within-a-store approach of merchandising. The company, through this model, encompasses the advantages of a large store as well as that of a specialty store. DSG operates through large format sporting goods stores that include single-level stores with an area of 50,000 square feet, and two-level stores with an area of 75,000 square feet. These large format stores offer a broad selection of merchandise. Each of its stores has the following in-store specialty shops: the Golf Pro shop, the footwear center, the fitness center, the lodge, and the team sports. This store format facilitates enhanced shopping experience as customers are easily able to locate the area of interest. Deep product selection is coupled with knowledgeable staff, which is typically an advantage offered by specialty stores. Large store format also allows DSG to offer a wide assortment of products for different sports. Additionally, by leveraging its economies of scale, the company is able to offer a comprehensive product selection, including national brands, private brands and exclusive brands at several price points.

Question 2

The financing of this project won't be too different as compared to other projects which are being carried out by the company. The basic sources of finance for mergers would remain the same, and would include debt financing and equity financing. In debt financing, the company can facilitate the merger in number of ways which includes Long-term term Financing and debentures. On the other hand, a ...