Calculate gearing ratios and describe any difficulties

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Reference no: EM13955743 , Length: word count:1000

DESCRIPTION: Words: 1000 word limit for the executive summary (excluding appendices) Your instructor will allocate you a publicly listed company to analyse and report on.

You are to complete the four tasks below and prepare a report. Reference: APA Referencing (At least 7 to 10 references) Company: Select one of the following companies listed on the ASX:- CBA Commonwealth Bank CTX Caltex Australia Limited DLX Dulux Group Limited FLT Flight Centre Limited HSO Healthscope Reference: 2015 Annual Report Download from the company website.

You will be required to search for data as part of the assignment to find financial information such as the firm's beta and the current risk free rate (e.g. for a 10-year investment, the Commonwealth Government 10-year Treasury Bond yield is appropriate).

Searching other websites such as the Reserve Bank of Australia is also required. In all cases you must note where you obtained information from and the date of access as part of your referencing.

Tasks:

1. Calculate the Weighted Average Cost of Capital using an appropriate technique.

2. Explain your calculations and the judgments you made in arriving at your answer.

3. Calculate gearing ratios and describe any difficulties in doing so.

4. Analyse your findings with reference to capital structure theory.

5. Provide a recommendation to the Board on the firm's current capital structure.

5 references

PLEASE NOTE THAT FOR THIS ASSIGNMENT THE WEBSITE GURUFOCUS WILL NOT BE ACCEPTED AS A REFERENCE SOURCE.

Reference no: EM13955743

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Calculate gearing ratios and describe any difficulties : Calculate the Weighted Average Cost of Capital using an appropriate technique and analyse your findings with reference to capital structure theory.

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