Reference no: EM132245847 , Length: 1500 Words

Corporate Finance Assignment -

Assignment based on Aristocrat Leisure Limited 2018 Annual Report.

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). Through the website you can access the Morningstar database (data analysis).

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 judgements 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.