FIN 620 – Comparing Under Armour (UA) to its Competitor
Background:
Under Armour, Inc. is a Maryland based company which provides sports
apparel and supplies.
Review and discuss the following about Under Armour and its competitors.
Use the following as competitors – Nike, Adidas, Columbia Sportsware.
Source of WACC: valupro.net (you may use other references).
Items:
1. Obtain the WACC for Under Armour and its competitors. Is UA’s
weights, cost of debt and cost of equity reasonable as compared to
its competitors – why or why not?
2. Do you believe Under Armour is operating at its optimal capital
structure – why or why not?
3. Currently Under Armour does not pay dividends; is this a good
decision – why or why not?