Project Report: Accounting and Finance

Running Head: Accounting and Finance
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Project Report: Accounting and Finance

Accounting and Finance
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Executive summary:
The report mainly focuses on an Australian company; AMP limited, the various
financial tools such as capital structure, WACC, cost of equity, ratio analysis and risk
position of the company has been identified in order to found the investment position of the
company. The study explains that the financial performance of the business is better in the
industry. The company is required to focus on the short term debt management, strategies and
operations of the business in order to reduce the volatility in the stock price of the business.

Accounting and Finance
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Contents
Introduction.......................................................................................................................4
Capital structure................................................................................................................4
CAPM and WACC...........................................................................................................6
Ratio analysis....................................................................................................................7
Material risk......................................................................................................................7
Conclusion........................................................................................................................8
References.........................................................................................................................9
Appendix.........................................................................................................................10

Accounting and Finance
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Part B:
Introduction:
The report has been prepared to identify the financial and non financial performance
of AMP limited. It focuses on the various financial tools to recognize the financial changes
and the current performance of the business. AMP limited is an Australian bank which
operates its business in the Australian and New Zealand market (Home, 2018). The report
focuses on the financial ratio, capital structure and the risk associated with the business on the
investor’s point of view.
Capital structure:
Debt and equity position:
Capital structure defines about the weight of various sources through which the funds
has been raised by the business (Moyer, McGuigan, Rao & Kretlow, 2011). The main item of
capital structure in a business is equity and debt. The AMP’s debt and equity share is as
follows:
Figure 1: Capital structure
(Annual report, 2017)
Competitor analysis: