Establishing the scale and cost of phoenix activity, Corporate Finance

Assignment Help:

Q. Establishing the scale and cost of phoenix activity?

In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to phoenix activity as $670 million to $1.3 billion.

This is likely to have increased significantly as the ATO reports that phoenix activity has been on the rise amongst larger businesses.

In order to ensure that the quantification was robust and defensible, a model was constructed that draws, as much as possible, on existing data. Where there was not reliable data, assumptions have been made based on feedback from stakeholders. Due to the uncertainty surrounding these assumptions, lower and upper bound estimates were used in the quantification. The assumptions were also subject to a range of sensitivity tests.

Based on this method, it is estimated that phoenix activity costs Australian employees $191 to $655 million per annum and the overall impact of phoenix activity is estimated as $1.78 to $3.19 billion per annum.


Related Discussions:- Establishing the scale and cost of phoenix activity

Explain what you understand by branding, a) Explain what you understand by...

a) Explain what you understand by ‘Branding'? b) A ‘Corporate identity' is often viewed as being composed of three parts; state them giving two examples of each. c) ‘Corpo

Impact of cost structure, You are required to provide a report of approx 50...

You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma

Describe reasons for corporate restructuring, 1. Describe three different...

1. Describe three different types of Mergers, and in what circumstances you expect to see each type occurring. 2. Just as Acquisitions and Mergers are a means by which compan

Taxable Income, The tax rates are as shown. Your firm currently has taxable...

The tax rates are as shown. Your firm currently has taxable income of $79,000. How much additional tax will you owe if you increase your taxable income by $30,000? Taxable Income

Cash budget, You have been asked to prepare a cash budget for Whitborrow pl...

You have been asked to prepare a cash budget for Whitborrow plc for the next three months, October, November and December. The Managers are concerned that they may not have suffici

Wacc, The cost of capital for a firm can differ from the cost of capital fo...

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

Market Beta, The management of Nelson plc wish to estimate their firm’s equ...

The management of Nelson plc wish to estimate their firm’s equity beta. Nelson has had a stock market quotation for only two months and the financial management feels that it would

Net profit value & profitability index, I wanna know how much u cost for th...

I wanna know how much u cost for the solution of my question (problem)

Growthg and assets, a firm wishes to maintain an internal growth rate of 6....

a firm wishes to maintain an internal growth rate of 6.5% and the dividend payout ratio of 25%. The current profit margin is 6%, and the firm uses no external financing sources. Wh

Explain about the commission broker, Explain about the Commission Broker ...

Explain about the Commission Broker All brokers sell and buy securities for earning a commission. From the investor's point of view, he is the most significant member of the

Write Your Message!

Captcha
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!

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