Question
1) Define the requested information for FedEx (stock symbol FDX)
Utilizing the 2007 FedEx Annual Report to the Shareholders PDF locate the Consolidated Statements of Income as well as Consolidated Balance Sheets on pages 59-60 in the document
Determine financial information for FedEx on the finance pages specifically the historical stock prices on December 13, 2006 (stock purchase date) and on August 13, 2007 (TSR evaluation date). In addition, using the same historical tables, pinpoint if FedEx paid any dividends to shareholders during the same date range (December 13, 2006 - August 13, 2007). Use this stock price as well as dividend information to calculate the TSR. The return must be based on a 12-month year.
Using the total market capitalization recorded in the Key Statistics area located to the left of your screen under Company (suppose $29 billion) and the capital investment by debt as well as equity as of May 31, 2007 (see financial statements listed in part 1 above) compute the MVA. Be careful as well as read/interpret the MVA formula in the chapter of your course text
Describe how the TSR and MVA compare with the SVA and the EVA. How does this move stakeholders in a company?
2) Define the requested information for FedEx
Define cost, profit as well as investment centers. Review the FedEx Annual Report to the Shareholders pages 32 to 53. Recognize one of the areas from the management's discussion as well as analysis that could be classified as a cost, profit or investment center as well as describe your reasons for this selection