Finance Accounting Assignment

Added on - 28 May 2020

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Running head: FINANCE ACCOUNTINGFinance AccountingName of the Student:Name of the University:Authors Note:
FINANCE ACCOUNTING1Table of Contents1. Preparing brief outline of the company, outlining core activities, markets and factors incompany’s activities:..................................................................................................................22i. Naming the main substantial shareholders:..........................................................................22ii. Naming the main people involved in firm governance:.......................................................23i. Calculating return on assets, return on equity and debt ratio of the company:.....................33ii. Explaining the phenomenon captured by variable TA/OE, while depicting its impact onreturn on assets and return on owner’s equity:...........................................................................33iii. Explaining why ROE is greater or less than ROA:............................................................44i. Preparing graph/chart for movements in the monthly share price cover last two yearsagainst All Ordinary Index:........................................................................................................44ii. Depicting how closely related are share price of the company and All Ordinary Index:....55. Providing significant announcements, which influenced share price of the organisation:....56i. Depicting the calculated beta of the company:.....................................................................66ii. Calculating rate of return of company’s share:....................................................................66iii. Explaining whether the company chosen is a conservative investment:............................67i. Calculating WACC of the company:....................................................................................67ii. Explaining the implications that a higher WACC has on management’s evaluation onperspective investment project:..................................................................................................78i. Depicting whether optimal capital structure is used by the company:.................................78ii. Depicting what they have done to adjust their gearing ratio:..............................................89. Discussing the dividend policy adopted by the management:...............................................810. Providing recommendations why the company could be included in his/her portfolio:......8Reference and Bibliography:......................................................................................................9
FINANCE ACCOUNTING21. Preparing brief outline of the company, outlining core activities, markets and factorsin company’s activities:The main operation ofLiving Cell Technologies Ltd is to use biotechnology toimprove wellbeing of people with serious diseases. The company aims in providing service tomankind by developing, discovering and commercializing regenerative treatments withinhumans. The company markets in Australia, which helps in generating required level ofprofits from operations. From the historical evaluation, Living Cell Technologies Ltd hasbeen developing DIABECELL, as an effective treatment for unstable type 1 diabetes. Thecompany has been developing treatment for neurological disorder since their establishmentdate of 1999 (Lctglobal.com 2018).2i. Naming the main substantial shareholders:Main substantial shareholdersNumber of Share held% of issued shareHSBC Custody Nominees (Australia) Ltd60,962,38411%Milford Asset Management36,078,6406%2ii. Naming the main people involved in firm governance:PositionName of the PersonsThe ChairmanRoyAustinCEOKenTaylorDirectorRobertElliottBoards membersLaurieHunterBoards membersBernardTuchBoards membersRobertWillcocks3i. Calculating return on assets, return on equity and debt ratio of the company:Particulars2017201620152014Net Profit After Tax(4,085,466)(3,123,208)(7,412,349)(4,943,490)Total Assets8,694,3606,312,4595,464,5159,664,604Ordinary Equity74,339,77068,406,38364,751,70960,685,600Total Liabilities1,176,020635,798337,6521,233,027Return on Assets-46.99%-49.48%-135.65%-51.15%
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