Purchase Solution

DCF Method, CAPM Method, Investment Projects

Not what you're looking for?

Ask Custom Question

Please help with determining ratios. The attached spread sheet is FEDEX 3 year financial statements. Trying to figure out the ratios. The one that I figured out is not coming close to what Morning Star: http://financials.morningstar.com/ratios/r.html?t=FDX&region=usa&culture=en-US or MSN Money:http://investing.money.msn.com/investments/key-ratios?symbol=FDX&page=PriceRatios are reporting. Please answer the following questions:

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF Method and CAPM method.

2. What major factors should the company be aware of as it evaluates possible investment projects in the future?

Purchase this Solution

Solution Summary

The solution for the Fedex Financial analysis calculates the cost of each capital component, after-tax cost of debt, cost of preferred, as well as factors that the company should be aware of.

Solution Preview

Capital Market value (in million $) Weight Cost Income tax rate After tax cost Weighted average cost of capital
Debt 4,737 9.6% 5.10% 36.24% 3.25% 0.31%
Preferred ...

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce