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Benefits & drawbacks of raising funds with debt for FEDEX

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Can you explain some benefits and drawbacks of raising funds through debt for the FedEx Corporation?

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Solution Summary

The tutorial includes a discussion of three benefits and three drawbacks of debt for FEDEX.

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BENEFITS:
- Can invest in projects that exceed the funds being generated from operating cash flows.
- Can earn more than the cost of debt creating positive financial leverage for owners.
- Can use some of the operating cash ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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