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Key comparative figures ($ millions) for both NIKEand Reebokfollow:

Key Figures

NIKE

Reebok

Financing (liabilities equity)

$5,397.4

$1,756.1

Net income (profit) . . . . . .

399.6

135.1

Revenues (sales) . . . . . . .

9,553.1

3,637.4

Required:

a. What is the total amount of assets invested in (a) NIKE and (b) Reebok?

b. What is the return on investment for (a) NIKE and (b) Reebok? NIKE"s beginning assets equal $5,361.2 (in millions) and Reebok"s beginning assets equal $1,786.2 (in millions).

c. How much are expenses for (a) NIKE and (b) Reebok?

d. Is return on investment satisfactory for (a) NIKE and (b) Reebok [assume competitors average a 4% return?

e. What can you conclude about NIKE and Reebok from these computations?

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