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Finance & Accounting
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Name: Instructor: Course: Date: Financial Management Question # 1 Bond rating is the grade given to a bond and indicates its credit quality. The rating starts from AAA, which is the stronger bond to C that is a weak bond. The bond rating for FedEx Corporation is BBB+ and has an outstanding amount of $3.0 billion.
That one for FedEx is $ 2.17 billion. Market capitalization is the total average value of a public company. Its calculation is the figure representing outstanding shares multiplied by the share price. That one for FedEx is $30.71 billion (Kansas 36). Question # 2 A standard & poor’s 500 Index is an index of 500 stocks as chosen for liquidity and industry grouping, liquidity and among other factors. It is usually used to show the risk versus return of capital. It is an average market value weighted index and is proportionate to the weight of each stock’s weight. This ratio is used in the stock exchange market to benchmark shares. It is considered as the average definition of the American stock exchange market. In December 2012, the standard for poor’s 500 index was $ 1608.36. As an estimate, the index is expected to be at 16999.00 by September 2013. This is mainly because as the market grows, the company will increase the number of stock in the market thus an increase in the standard for poor’s 500 index (Rhoads 56). Question # 3 The cash conversion cycle for a company is the measure of the average time required, for a company, to convert the resources it has as input into cash flows. It is simply the time required, for a company, to sell off its inventory, pay its bills, and collect account receivables. In cash-flow conversion, it is preferable when the number is low. ...
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