Financial management (answers on questions) - Essay Example

Financial Management Question 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. Common stock is a type of corporate equity. They are also called ordinary shares (Kansas 34). The number of these shares for FedEx is 97.09, which is a 1.31% increase. Preferred stock is the equity security of a company. It can be in terms of assets, debts, and bonds. 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. This is mainly because the shorter the cycles are the more money at the disposal for the company. It can thus make use of money on its own plans and uses. The cash life cycle for FedEx is as follows. In May 2010, the cash conversion cycle was 69 days. In May 2011, the cash conversion cycle was 67 days while, in May 2012, the cash conversion cycle was 62. These ratios are dependable since they are in line with the explanation of the cash conversion cycle (Stickney 23). Question # 4 Mad Money as presented by CNBC is not such an appealing program. Though it teaches people on some of the world’s secrets to success, it can also be seen to be giving people false information. What shocked me most was the idea that, nearly all people who come to that show were mere middle class or low class citizens but only came to fame through their billionaire status. To add to this, they all seem to have acquired their billionaire status from simple ways of getting money like investing in a firm only to emerge as a winner afterwards. Some of these are merely theories and can induce laziness into citizens of a country. People need to work to gain a livelihood but not through such means as they call them mad money. Another thing that scares me about the program is that it is full of lies. In one incidence cited, the host, Jim tells the media that the country is in a great depression. Another instance he tells the media that the media people are the ones that induced the depression into the people. At another instance, he is also threatening people that unless the banking system is helped, the nation will get into another depression. What makes the whole story not to be likable is the fact that he finally says that he was just trying to use scare tricks. This whole thing can make citizens very worried and even cause unrest; therefore, it should be stopped (Rhoads 67). Question # 5 Anderson cooper 360 is a good TV program as it gives teachings to individuals. Many people were optimistic in copper 360 becoming the program of their choice when it started, and sure enough, this program catches the minds of very many people in the country. This program is artistically designed and planned such that, it is the only one that is outstanding among all the CNN programs. It has good teachings and is also fun to watch. The funny bit of it all can be shown by how Snooki talks and how she carries herself around while acting. This program has reached the hearts of people until some start to think that they can vote Palin or Bachmann in as presidential candidates. This is a program that has a high number of citizens watching when it when it is on air (IMinds 1). Question # 6 The wall street journal has a lot of things that it airs about my country. As an example, the article talking about how top USA president advisors have been picked for top security jobs. Susan Rice and Samantha Power are to replace the national security advisor Tom Donilon and Ms. Rice respectively (Kansas 5). These two spectacular ladies served as the close supporters for the Obama 2008 campaign. President Obama says that he two have protected and worked faithfully for America and need to be given higher places to serve the citizens even better (Kansas 7). Question # 7 Another article from the Bloomberg Businessweek has shocking news indicating that, for freelancers, they will still need insurance for medical purposes despite the fact that there is the Obama health act that guarantees people cheap medical care. This is mainly because freelancers are self-employed and thus will need personal insurance to cater for their medical needs. A study contacted by Cigna shows that nearly sixty percent of self-employed people in USA are uninsured. This poses a risk to their life and thus will need the government’s intervention so that they are insured (Klein et al 54). Works cited Bloomberg. Business week. New York: Bloomberg, 2012. Print. IMinds. Market capitalisation. Mosman: IMinds, 2009. Print. Kansas, Dave. The Wall Street Journal complete money & investing guidebook. New York : Three Rivers Press, 2005. Print. Klein, Lawrence. Viktoria, Dalko. & Michael, Wang. Regulating competition in stock markets . Hoboken: John Wiley & Sons, 2012. Print. Mann, Windsor. & Martin, Amis. The Quotable Hitchens. New York : Da Capo Press, 2011. Rhoads, Russell. Trading VIX derivatives . Hoboken: Wiley, 2011. Print. Stickney, Clyde P. Financial accounting : an introduction to concepts, methods, and uses. Mason: Cengage Learning, 2010. Print. Read More