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Cost of Capital, Capital Structure, and Capital Budgeting Analysis(Fedex)

Cost of Capital, Capital Structure, and Capital Budgeting Analysis(Fedex)

 GUIDELINE: 

Please find the financial statements of Fedex from internet and do the following analysis. The sample project is for guidance only. Your project should be well-organized and typed in a Word document with important tables and results. The style and organization of the project accounts for 10 points. Do not directly copy any contents or results from any other sources. List the cited references in your project. Both the Word/PDF documents and Excel calculations are required for the submission.

(1) Executive Summary (10 points)

– Summarize the major findings, results, and the analysis of the report.

(2) Financial Ratio Analysis (40 points)

You are expected to retrieve the most recent 5 years’ financial statements your selected company and apply the knowledge learned in Financial Management and Financial Statement Analysis (ACCT6351) to calculate and analyze the key financial ratios for the firm.

– Perform trend analysis of the key financial ratios (i.e., liquidity ratios, asset management ratios, debt ratios, profitability ratios, market value ratios) for 5 years.

– Perform industry (or benchmark companies) comparison analysis of the key financial ratios of the company for the most recent year.

– Based on the financial ratio analysis results, discuss/evaluate the financial performance of the firm.

(3) Estimate Capital Structure (20 points)

– Estimate the firm’s weights of debt, preferred stock, and common stock using the firm’s balance sheet (book value) using the most recent year data.

– Estimate the firm’s weights of debt, preferred stock, and common stock using the market value of each component using the most recent year data.