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Help me with these two problems pls! I would also appreciate it if you could provide the inputs for Excel for this as well. Thanks!

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Help me with these two problems pls! I would also appreciate it if you could provide the inputs for Excel for this as well. Thanks!

Here is the data in table form

Year

FDX (%)

Market (%)

(FDX-Mean)(Market-Mean)

2020

71.67

-2.01

-491.77

2019

-27.74

5.46

31.24

2018

0.56

7.7

-16.79

2017

26.68

28.91

330.64

2016

7.06

3.75

12.55

2015

-3.88

-2.12

133.60

2014

25.33

8.11

24.70

2013

15.04

9.87

10.69

2012

11.93

4.29

0.32

2011

-2.68

6.78

-7.91

2010

123.17

57.05

5643.39

2009

-50.49

-45.24

3222.00

2008

-25.07

-3.86

375.50

2007

-2.29

8.73

-35.75

Mean

______

6.244286

SUM

9232.39

Variance

______

463.2035

COV

_______

Std.Dev.

______

21.52216

BETA

_______

antong Subtitle Title T No Spac. Subtle Em... intense E... Quote Intense Subtle Paragraph Styles output below. From the Regression output, what is the Beta for FDX Corporation stock? Beta () As a new Investment Analyst for Burt & Brommer (B&B) Capital Management, Inc., you are asked to estimate the mean variance, standard deviation of returns for FedEx (FDX) common stock. You have obtained the following "actual annual rates of retum for the previous fourteen years for both FedEx stock and the (NYSE) FDX Market Year 26 (FDX-Mean Market Mean) 2020 71.67 -2.01 491.77 2019 27.74 5.46 31.24 2018 0.56 7.2 -16.79 2017 26.68 2891 330.64 2016 7.06 3.75 12.55 2015 -3.88 -2.12 133.60 2014 2533 8.11 24.70 2013 15.04 9.87 10 69 2012 11.93 4.29 0.32 2011 -2.68 6.78 -791 2010 123.17 57.05 5643 39 2009 -50.49 45.24 3222.00 2008 -25.07 -3.86 375 SO 2007 2.29 8.73 -35.75 Mean 6244286 SUM 923239 Variance 463.2035 COV Std Dey 21 52216 BETA a) Using Excel, calculate the mean, variance and Standard Deviation for FedEx stock. The Market Index values are given above FDX Mean 94 Variance Std. Dey b) Using Excel, calculated the covariance for FedEx stock with the NYSE Index Covariance = After using Excel to calculate the covariance of FedEx Corporation stock returns with the Market Index, what is FDX's correlation with the market and its beta () using the covariance? Correlation - 0. Beta) c) Using Regression under Data in Excel they axis FDX percentage returns and the axis is the Market percentage returns. Copy and paste (as a picture) the regression W eferences Mailings Review View Help Tell me what you want to do AAA- 11 AaBbCeDe AaBbCd AaBbCc AabhC:De AaCeDd AaBbCD AaBbCd AaBbCcDc AabeDe dabeDe daBecede dalbe AABBC Emphasis T Heading 1 T Heading 3 T Normal Strong Subtitle 1 Title * No Spac... Subtle Em... Intense E.. Quote Intense Subtle Rel ALA Paragraph Styles (20 points) 2. You are an intem at FedEx Corporation and the CFO, Mt. Grayson House, has asked you to estimate the growth rate and cost of equity capital (retained canungs) for the firm. Each FDX stock is expected to pay a dividend (D) of $2.60 a share next year. You estimated the beta above in problein L. The risk-free rate is estimated as the yield on nommal 10-year US Treasury bonds is 0.88 and the market risk pretium tox-6is 5.5%. FedEx's dividend is expected to grow at the same constant rate, S. forever. The stock currently sells for $259.47 per share. Assuming the market is in equilibrium where both the CAPM and DCF model should result in the same expected rate of retur (30 Points) 4. Given the after-tax cost of new FDX 30-year bonds calculated in the previous problem and that FDX has 836.120 Billion of Debt and its most recent market value of equity is 68.135 Billion. (total value of debt plus equity of $104.255 Billion) its debt/equity ratios 0.530, which converts to its current capital structure is 34,7% debt (Debt/Total Asset ratio is 34 7%) and 65 3% equity, what is the weighted average cost of capital (WACC) for FDX given the cost of debt and equity capital calculated above? FDX has no preferred stock. Remember WACC = W. *(before tax cost of debt*(1-tax rate) + W "cost of equity a What is the firm's estimated cost of equity capital for retained earnings (0) and what is its implied growth rate (g)? Reinember = LIMId= 0.88% +15.5%]2.53 % and Po=D1 (1-8) WACC % 8=-D/P, b. Given average returns for the previous 14 years, is FedEx Corporation common stock underpriced or overpriced? I (10 Points) 3. As a measure of FDX's current cost of new issue debt, FDX Corp issued new long-term BBB (S&P) bouds on October 17, 2018 of $850,000,000 par value with a coupon rate of 4.950% (paid semiannually) that will mature on October 17, 2048. At the current price of 111.250 percent of par value, this equals an annual yield of 4.06%. You may use this bond issue to estimate FDX's cost of thew issue, 30 year matunity debt What is FDX's after tax cost of the new debe assuming a 26 percent income tax rate? Remember: After-tax cost-before-tax cost (1-tax rate). After tax cost debt - antong Subtitle Title T No Spac. Subtle Em... intense E... Quote Intense Subtle Paragraph Styles output below. From the Regression output, what is the Beta for FDX Corporation stock? Beta () As a new Investment Analyst for Burt & Brommer (B&B) Capital Management, Inc., you are asked to estimate the mean variance, standard deviation of returns for FedEx (FDX) common stock. You have obtained the following "actual annual rates of retum for the previous fourteen years for both FedEx stock and the (NYSE) FDX Market Year 26 (FDX-Mean Market Mean) 2020 71.67 -2.01 491.77 2019 27.74 5.46 31.24 2018 0.56 7.2 -16.79 2017 26.68 2891 330.64 2016 7.06 3.75 12.55 2015 -3.88 -2.12 133.60 2014 2533 8.11 24.70 2013 15.04 9.87 10 69 2012 11.93 4.29 0.32 2011 -2.68 6.78 -791 2010 123.17 57.05 5643 39 2009 -50.49 45.24 3222.00 2008 -25.07 -3.86 375 SO 2007 2.29 8.73 -35.75 Mean 6244286 SUM 923239 Variance 463.2035 COV Std Dey 21 52216 BETA a) Using Excel, calculate the mean, variance and Standard Deviation for FedEx stock. The Market Index values are given above FDX Mean 94 Variance Std. Dey b) Using Excel, calculated the covariance for FedEx stock with the NYSE Index Covariance = After using Excel to calculate the covariance of FedEx Corporation stock returns with the Market Index, what is FDX's correlation with the market and its beta () using the covariance? Correlation - 0. Beta) c) Using Regression under Data in Excel they axis FDX percentage returns and the axis is the Market percentage returns. Copy and paste (as a picture) the regression W eferences Mailings Review View Help Tell me what you want to do AAA- 11 AaBbCeDe AaBbCd AaBbCc AabhC:De AaCeDd AaBbCD AaBbCd AaBbCcDc AabeDe dabeDe daBecede dalbe AABBC Emphasis T Heading 1 T Heading 3 T Normal Strong Subtitle 1 Title * No Spac... Subtle Em... Intense E.. Quote Intense Subtle Rel ALA Paragraph Styles (20 points) 2. You are an intem at FedEx Corporation and the CFO, Mt. Grayson House, has asked you to estimate the growth rate and cost of equity capital (retained canungs) for the firm. Each FDX stock is expected to pay a dividend (D) of $2.60 a share next year. You estimated the beta above in problein L. The risk-free rate is estimated as the yield on nommal 10-year US Treasury bonds is 0.88 and the market risk pretium tox-6is 5.5%. FedEx's dividend is expected to grow at the same constant rate, S. forever. The stock currently sells for $259.47 per share. Assuming the market is in equilibrium where both the CAPM and DCF model should result in the same expected rate of retur (30 Points) 4. Given the after-tax cost of new FDX 30-year bonds calculated in the previous problem and that FDX has 836.120 Billion of Debt and its most recent market value of equity is 68.135 Billion. (total value of debt plus equity of $104.255 Billion) its debt/equity ratios 0.530, which converts to its current capital structure is 34,7% debt (Debt/Total Asset ratio is 34 7%) and 65 3% equity, what is the weighted average cost of capital (WACC) for FDX given the cost of debt and equity capital calculated above? FDX has no preferred stock. Remember WACC = W. *(before tax cost of debt*(1-tax rate) + W "cost of equity a What is the firm's estimated cost of equity capital for retained earnings (0) and what is its implied growth rate (g)? Reinember = LIMId= 0.88% +15.5%]2.53 % and Po=D1 (1-8) WACC % 8=-D/P, b. Given average returns for the previous 14 years, is FedEx Corporation common stock underpriced or overpriced? I (10 Points) 3. As a measure of FDX's current cost of new issue debt, FDX Corp issued new long-term BBB (S&P) bouds on October 17, 2018 of $850,000,000 par value with a coupon rate of 4.950% (paid semiannually) that will mature on October 17, 2048. At the current price of 111.250 percent of par value, this equals an annual yield of 4.06%. You may use this bond issue to estimate FDX's cost of thew issue, 30 year matunity debt What is FDX's after tax cost of the new debe assuming a 26 percent income tax rate? Remember: After-tax cost-before-tax cost (1-tax rate). After tax cost debt

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