Reference no: EM132479787

Suppose you are a financial analyst and you have been asked to analyse CSL Limited Australia.

Your task is to make a recommendation as to whether or not this company is an attractive investment opportunity. Before you draw a conclusion, you are required to:

Question 1) Discuss how successful the company has been at maximising stakeholders value over analysing period. using : P/E ratio, ROA and ROE over the last 3 years.

Question 2) Analyse the company's share price history and traded volumes over the last 3 years

Question 3) Calculate the return for investing in the company both short term and long term and identify the main causes of its volatility in return over the corresponding holding period. The discussion of volatility should consider economic-wide and firm-specific factors.

Question 4) Apply the valuation technique(s) and undertake a current valuation of the equity for the company. Based on your calculation, would you recommend a prospective investor to buy, hold or sell this security and why.

Question 5) Analyse the company's dividend policy. Should the company follow a progressive dividend policy? Critically evaluate factors that are affecting corporate dividend policy and how your company's dividend policy may have influenced its capital structure and share price.

Question 6) Analyse the company's capital structure. How would you describe the current capital structure for your company and justify with reasons that should potential investors view this company as a favourable investment choice?