Analysis of Debt Ratio and Dividend Announcements of Ainsworth Game Technology Limited

Running head: DIVIDEND ANNOUNCEMENTS
Dividend Announcements
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
A company raises debt to finance its operations as it is one of the sources of finance after
ploughing back of profits. However, the effect which the raising of debt has on the financials
of a company is a major concern for the investors. The analysis of the level of debt is equally
important for other stakeholders of the company. Corporate announcements is one of the
major events which affect the stock price of the company. This is because the investors
perceive information about the company based on these announcements as they are lacking
full transparent information about the company. All these effects and analysis is evaluated by
taking the Ainsworth Game Technology Company. Also the Company Breville Limited is
taken as the comparable company for our analysis.

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Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................4
Calculation of various Debt Ratio:.........................................................................................4
Analysis of the ratio with Industry Average:.........................................................................5
Analysis of fundamentals with Competitors:.........................................................................7
Optimal Capital Structure:.....................................................................................................8
Dividend Announcement:......................................................................................................9
Optimal Capital Structure and Hypothesis:..........................................................................12
Conclusion:..............................................................................................................................13
References and Bibliographies:................................................................................................14

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