Finance for Business- Assignment

Running head: FINANCE FOR BUSINESS
Finance for Business
Name of the university
Name of the student
Authors note

1FINANCE FOR BUSINESS
Table of Contents
Description of company:..................................................................................................................2
Ownership and governance structure of company:.........................................................................2
Calculation of performance ratios:..................................................................................................3
Significant factors influencing the share price of Oz Minerals:......................................................6
Calculation of Beta values and expected rate of returns:................................................................7
Weighted average cost of capital:....................................................................................................7
Debt ratios for the past two years:...................................................................................................8
Dividend policy:..............................................................................................................................9
Letter recommendation:...................................................................................................................9
Description of company:

2FINANCE FOR BUSINESS
Tasman resource Limited is an exploration company of Australia that is based in Perth.
Main objective of company is to focus on exploration project having potential of major deposits
in a range of base and precious metals including silver, gold, nickel, lead, zinc, copper and
uranium (Tasmanresources.com.au. 2018). It is multi commodity and diversified explorer with
projects having large tenements holdings in South Australia. Company is doing evaluation of
Parkinson Dam epithermal gold discovery and identification of further exploration is the new
target of company. Tasman holds 19% of interest in Conico Limited that helps in exploration of
cobalt, manganese oxide deposit in Western Australia and 46% interest in Eden Energy limited
that helps in marketing and development of key technology products (Tasmanresources.com.au.
2018).
Ownership and governance structure of company:
From the analysis of annual report of Tasman resources limited for the year ending 2017,
it is ascertained that there are no substantial shareholders holding more than 20% of
shareholdings.

3FINANCE FOR BUSINESS
However, there are four substantial shareholders having more than 5% shareholdings and
they are March Bells Pty having 13.08%, Arkenstone Pty Ltd having 13.735% of shareholdings,
March Bells Pty Ltd having 5.88% of shareholdings and Arkenstone Pty Ltd having 5.5090% of
shareholdings (Tasmanresources.com.au. 2018). Therefore, the company is classified as non-
family company.
Main people involved in governance of firm are board of directors of company. This
incorporates chief executive officers, chairman and non-executive directors. Gregory H Solomon
is the executive chairman, Douglas H Solomon and Guy T Le Page is non-executive chairman of
Tasman Resources limited (Tasmanresources.com.au. 2018).
Calculation of performance ratios:
$0.0
00
$0.0
00
$0.0
00
$0.00
0 Trend
Particulars` 2014 2015 2016 2017
201
4 2015 2016 2017
Net Profit after
Tax (NPAT) A
-
2005
673
-
6288
176
-
4103
421
-
1286
0328
-
100.
0%
-
313.
5%
-
204.
6%
-
641.
2%
Total Assets
(TA) B
2518
7568
2228
0607
3434
0214
4069
5493
100.
0%
88.5
%
136.
3%
161.
6%
Ordinary Equity
(OE) C
2398
7848
2056
3446
3334
7685
3710
2414
100.
0%
85.7
%
139.
0%
154.
7%
Total Liabilities D
1199
720
1717
161
9925
29
3593
079
100.
0%
143.
1%
82.7
%
299.
5%
Return on
Assets (ROA)
E=
A/B
-
7.96
%
-
28.2
2%
-
11.9
5%
-
31.60
%
-
100
.0%
-
354.
42%
-
150.
06%
-
396.
85%
Return on
Equity (ROE)
F=
A/C
-
8.36
%
-
30.5
8%
-
12.3
0%
-
34.66
%
-
100
.0%
-
365.
73%
-
147.
17%
-
414.
55%
Debt Ratio
G=
D/B
0.04
8
0.07
7
0.02
9 0.088
100
.0%
161.
80%
60.6
8%
185.
36%