AFIN253 Financial Management

Published : 08-Sep,2021 | Views : 10

Question:

What are the short-term and long-term debts used by your firm
Is your company’s debt structure consistent with the industry
How does the industry your company operates in influence the proportion of short-term to long-term debts of your company
What is your company’s the cost of debt
What is your company’s cost of equity
Evaluate and discuss your company’s revenue, earnings, EPS, dividends and growth expectations. Use the most recent reported earnings results from the annual report you submitted in PART A for your analysis.

Value your company’s stock using comparables approach (ie. P/E) and constant dividend growth rate model. What are the factors that influence your company’s stock price and how are they captured in these models

Which of the values in question 3 appear most reasonable compared to the market price of your company’s stock
What additional data and information would you prefer for valuing your company’s stock Explain your reason(s).
Calculate the weighted average cost of capital (WACC) of your company
Explain the company’s tax rate in the calculation of WACC
Why is there a difference in the cost of debt and the cost of equity
Should current liabilities be included in the cost of capital calculation What are the pros and cons.

What is the major value of the WACC calculation for your company and how is it applied in investment decision-making

Provide examples of how your company might have recently used WACC in its investment decision-making with reference to two projects recently undertaken by your company. You may need to synthesize information from your readings (ie. Annual reports, GPFS etc.) to identify the projects.

Define and explain capital structure of your company. Discuss whether it is consistent with the industry and why or why not.
What is the optimal capital structure and what economic circumstances will likely cause a change in it
Comment on your chosen company’s financial performance relative to its industry. You will have to investigate your company’s industry using sources such as Bureau of Statistics, industry journals/publications, analysis in financial press, IBISWorld etc.

Conduct a literature search on your company. Summarise and explain how your company is being viewed by financial analysts and others in the press (or has been viewed over recent years, as appropriate to your company). Do you agree with the comments.Why/why not Explain.

Comment on any other item that is important or different about your company (that is relevant to the topics in this course).

Answer:

Date	Adj Close	Return	Date	Adj Close	Return
30-06-2013	1.69		30-06-2013	28.9837
31-07-2013	1.68	-0.00591716	31-07-2013	30.7262	0.060119998
31-08-2013	1.72	0.023809524	31-08-2013	34.4575	0.12143708
30-09-2013	1.76	0.023255814	30-09-2013	35.884998	0.041427788
31-10-2013	1.73	-0.017045455	31-10-2013	35.629101	-0.00713103
30-11-2013	1.68	-0.028901734	30-11-2013	37.0271	0.03923756
31-12-2013	1.67	-0.005952381	31-12-2013	36.820301	-0.005585071
31-01-2014	1.69	0.011976048	31-01-2014	33.07	-0.101854165
28-02-2014	1.68	-0.00591716	28-02-2014	34.700001	0.049289416
31-03-2014	1.68	0	31-03-2014	35.450001	0.021613832
30-04-2014	1.69	0.005952381	30-04-2014	34.529999	-0.025952101
31-05-2014	1.79	0.059171598	31-05-2014	36.689999	0.062554302
30-06-2014	1.75	-0.022346369	30-06-2014	37.099998	0.01117468
31-07-2014	1.73	-0.011428571	31-07-2014	36.759998	-0.009164421
31-08-2014	1.76	0.01734104	31-08-2014	35.619999	-0.031011944
30-09-2014	1.72	-0.022727273	30-09-2014	37.560001	0.054463842
31-10-2014	1.68	-0.023255814	31-10-2014	36.07	-0.039669887
30-11-2014	1.67	-0.005952381	30-11-2014	35.540001	-0.014693624
31-12-2014	1.69	0.011976048	31-12-2014	35.98	0.012380388
31-01-2015	1.68	-0.00591716	31-01-2015	35.639999	-0.009449722
28-02-2015	1.68	0	28-02-2015	36.189999	0.015432099
31-03-2015	1.69	0.005952381	31-03-2015	37.490002	0.035921609
30-04-2015	1.69	0	30-04-2015	35.860001	-0.043478285
31-05-2015	1.68	-0.00591716	31-05-2015	35.990002	0.003625237
30-06-2015	1.72	0.023809524	30-06-2015	36	0.000277799
31-07-2015	1.76	0.023255814	31-07-2015	36.740002	0.020555611
31-08-2015	1.73	-0.017045455	31-08-2015	38.139999	0.038105523
30-09-2015	1.68	-0.028901734	30-09-2015	44.139999	0.157315159
31-10-2015	1.67	-0.005952381	31-10-2015	41.41	-0.061848642
30-11-2015	1.69	0.011976048	30-11-2015	42.150002	0.017870128
31-12-2015	1.68	-0.00591716	31-12-2015	39.900002	-0.05338078
31-01-2016	1.68	0	31-01-2016	44.450001	0.114035057
29-02-2016	1.69	0.005952381	29-02-2016	39.439999	-0.112710954
31-03-2016	1.79	0.059171598	31-03-2016	37.880001	-0.039553703
30-04-2016	1.75	-0.022346369	30-04-2016	41.220001	0.088173176
31-05-2016	1.73	-0.011428571	31-05-2016	41.389999	0.004124163
30-06-2016	1.76	0.01734104	30-06-2016	42.459999	0.025851656
31-07-2016	1.72	-0.022727273	31-07-2016	42.349998	-0.002590697
31-08-2016	1.68	-0.023255814	31-08-2016	42.029999	-0.007556057
30-09-2016	1.67	-0.005952381	30-09-2016	41.43	-0.014275494
31-10-2016	1.69	0.011976048	31-10-2016	43.73	0.055515327
30-11-2016	1.68	-0.00591716	30-11-2016	44.509998	0.01783668
31-12-2016	1.68	0	31-12-2016	45.759998	0.028083578
31-01-2017	1.69	0.005952381	31-01-2017	49.700001	0.086101468
28-02-2017	1.69	0	28-02-2017	51.150002	0.02917507
31-03-2017	1.68	-0.00591716	31-03-2017	48.16	-0.05845556
30-04-2017	1.68	0	30-04-2017	51.150002	0.062084759
31-05-2017	1.69	0.005952381	31-05-2017	48.16	-0.05845556