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Will FedEx's Recent Indictment Impact Its Ability To Meet Short Term Obligations?

If FedEx is found guilty, it faces a potential maximum fine of twice the gains from shipments by pharmacies, which is estimated to be around $820 million, meaning a total fine of $1.6 billion. This amounts to 46.4% of FedEx's operating profits for the fiscal year 2014 and therefore raises concerns about the company's ability to pay-off and recover from such a hefty fine. It also brings into …

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