FedEx Corp

question 71

Multiple Choice

FedEx Corp. stock ended the previous year at $113.39 per share. It paid a $0.40 per share dividend last year. It ended last year at $126.69. If you owned 300 shares of FedEx, what was your dollar return and percent return?

• A) $3,990, 11.73 percent
• B) $4,110, 12.08 percent
• C) $4,250, 12.29 percent
• D) $2,009, 9.13 percent

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Definitions:

Constant Growth

A model assuming that dividends or any other type of cash flow grow at a constant rate indefinitely.

Debt/Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Weighted Average Cost Of Capital

The average rate that a company is expected to pay to finance its assets, weighted according to the proportion of equity and debt in its capital structure.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.