User Account

All Pages

Determine the cost of capital for each source of finance

Assignment Help Other Subject
Reference no: EM132304990

Assessment Task

Select a company from the list below:

COMPANY NAME

SYMBOL

GICS INDUSTRY GROUP

Bluescope Steel Limited

BSL

Materials

Ramsay Healthcare

RHC

Health Care

AGL Energy Limited

AGL

Utilities

Qantas Airways Limited

QAN

Transportation

Computershare Limited

CPU

Software & Services

Notify the lecturer in charge of the title of the company you have selected by 15 March 2019.

Required:

Suppose you work for an S&P/ASX20 company which is exploring opportunities to acquire a business. Chief Executive Officer (CEO) is seeking your recommendation whether the company you selected would be a worthy target for acquisition. You have been asked by CEO to write a report addressing the industry outlook, risk profile, cost of capital and dividend policy and make recommendations.

A) Industry and market outlook
Describe the economic and industry environment for the industry in general and the selected company in particular. Critically evaluate and comment on the key factors that affect the company's attractiveness for investment.

B) Risk analysis
Outline and comment on the risk (both systematic and unsystematic risk) profile of the company. Determine the beta for the firm using raw data. Discuss the issues associated with estimating beta.

C) Cost of capital and capital structure
Determine the cost of capital for each source of finance as well as the weighted average cost of capital for 2018. What does the WACC suggest for the company? Provide an evaluation of the company's capital structure policy and recommend an appropriate capital structure policy for the company. Do you find the capital structure risky for the company? Justify your answer.

D) Dividend policy
Analyse the company's dividend practices and the use of internal funds over the 2009-2018 period. Describe the dividend pattern and policy followed.

E) Share price performance

Analyse changes in the of share price over the past 10 years, and based on your analysis discuss the performance of the company over the past 10 years.

Attachment:- Principles of Finance.rar

Verified Expert

The assignment needed us to do Question c for Qantas airways.We needed to calculate the cost of capital and determine the capital structure and give an analysis on the same.

Reference no: EM132304990

Questions Cloud

Create a new thread : Create a new thread. As indicated above, please explain how you would reduce potential vulnerabilities, protect against intrusion attempts.
Why do you feel businesses must spend time and money : Why do you feel businesses must spend time and money to educate their employees on security matters? A word document should be fine.
What is the osi security architecture : What is the OSI security architecture? What is the difference between passive and active security threats?
Why are these factors so important to businesses : Explain what the following terms mean to you as they apply to information security and safe computing: Confidentiality, Integrity, and Availability.
Determine the cost of capital for each source of finance : BAFN200 - Principles of Finance - Australian Catholic University - Determine the cost of capital for each source of finance as well as the weighted average cost
How should a publishing business respond : re there ways that existing publishing houses can take advantage of the easy access readers have to publish extensions of stories?
Discuss the team dynamics for a highly effective team : Which CEO-Jobs or Cook-do you think developed and executed the most effective strategic plan? What evidence can you find to support your opinion?
Access to information in the workplace : 1. Explain why is it important for employees to have access to information in the workplace?
Key elements in steps of developing a learning plan : Identify and describe the process and key elements in steps of developing a learning plan.

Reviews

len2304990

5/13/2019 11:58:54 PM

C Cost of capital & capital structure Determine the cost of capital for each source of finance as well as the weighted average cost of capital for 2018. What does the WACC suggest for the company? Provide an evaluation of the company’s capital structure policy and recommend an appropriate capital structure policy for the company. Do you find the capital structure risky for the company? Justify your answer. 25 D Dividend policy Analyse the company’s dividend practices and the use of internal funds over the 2009-2018 period. Describe the dividend pattern and policy followed. 15 E Share price performance Analyse changes in the of share price over the past 10 years. Discuss the performance of the company over the past 10 years based on your analysis. 10 Conclusion & recommendations 5 Total 100

len2304990

5/13/2019 11:58:47 PM

Introduction and purpose of analysis 5 A Industry and market outlook Describe the economic and industry environment for the industry in general and for the selected company. Critically evaluate and comment on the key factors that affect the company’s attractiveness for investment. 15 B Risk analysis Outline and comment on the risk (both systematic and unsystematic risk) profile of the company. Determine the beta for the firm using raw data. Discuss the issues associated with estimating beta. 25

len2304990

5/13/2019 11:58:36 PM

Format of the assignment • An assignment coversheet (ensure group members’ full names and student numbers are correctly written, and the part each student completed specified) • A table of contents • An introduction • The body of the assignment • References • 12-point Arial or Times New Roman font with a 1-inch margins on all sides. • Double-spaced • All pages following the cover page should have a page number. • Contribution sheet completed by each student is handed in to the lecturer within the due date via BAFN200 LEO site. • Appropriately cite reference for original work, author(s) etc. Citation and referencing must conform to Harvard/APA 6 referencing system.

len2304990

5/13/2019 11:58:14 PM

This assignment is to be completed in groups of up to four students. Students are required to choose the group members and submit the names and student IDs of their group members to the lecturer-in-charge by

Write a Review

Other Subject Questions & Answers

  Define evaluation of nursing theory using guided questions

The purpose of the reflective exercises is to allow for analysis, synthesis and evaluation of nursing theory using guided questions.

  Explain the importance of the topic and research question

Explain the importance of the topic and research question. Devise a specific research question related to the topic you chose in Week One.

  What is usually found in the pore spaces in nature

What is usually found in the pore spaces in nature; is fertile soil renewable or non-renewable?

  What impact has this activity had on your relationship

Complete the Thomas-Kilmann Conflict Mode Instrument, "Me about Me," in the context of your relationship with your partner. What impact has this activity had on your relationship

  Explain how exposure to a diversity of backgrounds

Explain how exposure to a diversity of backgrounds and experience in an organization influences the evolution of personal ethics? Give an example of a business situation or circumstance concerning diversity in the workplace that influenced or changed..

  What audience might be interested in this study

Why did the authors conduct this study and write this article? What was the problem of interest or concern?

  Power of the president

Congress increased the power of the President when it allowed the executive  to:

  Explain the basic buddhist teachings

Explain the basic Buddhist teachings, including the three marks of reality, the Four Noble Truths, and the Noble Eightfold Path

  How social media has made it easy to post videos of cops

Write a 3 page paper arguing why police bruatyality is being taken out of hand and how social media has made it easy to post videos of cops and there behavoir so the world can see

  voting rights for children

There is a gaping inconsistency in the logic of our democracy in denying children this fundamental democratic right. Many argue that children haven't the intelligence and experience to vote in a meaningful way. This argument was used years ago as a r..

  How might we test the perception

Our constructs of reality are based on stories which we perceive as truth. These stories are our own perceptions, and people consider their perceptions.

  Energy and mass are equivalent

Einstein discovered that energy and mass are equivalent. What is one technological development that has emerged from the knowledge and is the human race better or worse off with it?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd