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Financial Analysis: FedEx Corporation

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For the course project, you are to choose FedEx corporation (http://www.fedex.com/us/investorrelations/financialinfo/goals ; http://ir.fedex.com/annuals.cfm ; http://files.shareholder.com/downloads/FDX/992754901x0x395636/5b8f7453-b960-4f0f-92cd-ec27cab06760/FedEx_2010_AR.pdf) that is listed and traded on the New York Stock Exchange (NYSE: Symbol - FDX) [Current share price, company background and other information: http://money.cnn.com/quote/quote.html?symb=FDX].

The project has two sections: in the first section, you are required to estimate the cost of capital of the FedEx Corporation as of the beginning of the present session. In the second part, you apply the cost of capital to assess the extent to which a particular (hypothetical) investment project should be approved by the FedEx Corporation, and the NPV of this proposed investment.

Are there any important economic variables that financial managers of FedEx Corporation need to identify before expanding in Canada?

What are the main challenges that the financial managers of FedEx Corporation will face to open up new branch in Canada?

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Are there any important economic variables that financial managers of FedEx Corporation need to identify before expanding in Canada?

Yes, there are some important economic variables those financial managers of FedEx Corporation need to identify before expanding in Canada. These factors are:
1)      Competition ...

Solution Summary

The solution discusses a financial analysis about the FedEx corporation.

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Using FedEx's financial statements, investor presentations, industry reports, newspaper/magazine articles, consumer reviews write a three-page paper and analyze FedEx's competitive advantages, including the Sellers framework. Analyze FedEx's stock value. This will include analysis of the company's present P/E, PEG, P/B, and P/S multiplies versus competitors (UPS/DHL) in the industry and versus historic multiples going over the past 1,3, and 5-year periods. Offer an opinion as to the current pricing of the company's stock. Assess FedEx's fixed-income makeup. Please identify the bonds that the company has issued, the amounts of those bonds, their structure, their various due dates, and their various interest rates. Use the breakeven and payback analyses to elevate FedEx from a variety of different angles.

Breakeven and payback analyses tools are valuation tools that are designed to quantify the present value of an asset that will distribute future cash flow. Like the breakeven point, the payback period captures a specific moment in a project's life cycle. But while breakeven analysis helps managers make intelligent decisions about working capital and liquidity, payback analysis is designed to highlight the efficiency, profitability and time value of a project. More specifically, the payback period is the length of time before investors recoup all of the costs incurred to make a project happen.

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