Finance Assignment | Business Plan Assignment
11 Pages2252 Words47 Views
Added on 2020-05-16
Finance Assignment | Business Plan Assignment
Added on 2020-05-16
ShareRelated Documents
Running head: FINANCEFinanceName of the Student:Name of the University:Authors Note:
FINANCE1Table of Contents1. Formulating outline of the company, its core activities, factors in company’s activities andmarket:........................................................................................................................................22i. Identifying the substantial shareholders:...............................................................................22ii. Identifying the people involved in firm governance:...........................................................23i. Drafting the debt ratio, return on assets, and return on equity of REV:...............................33ii. Identifying the overall phenomenon captured by variable TA/OE:.....................................43iii. Depicting the reason behind higher ROE and lesser ROA:................................................44i. Drafting an adequate graph/chart which depicts the changes in monthly share price coverlast two years against All Ordinary Index:.................................................................................54ii. Stating whether share prices are related with All Ordinary Index price movement:...........55. Depicting the overall significance of announcements and its impact on share price of theorganisation:...............................................................................................................................66i. Identifying and calculating the beta of REV:........................................................................66ii. Drafting the overall CAPM retune of the REV:..................................................................66iii. Indicating whether REA is a conservative investment for investors:.................................77i. Drafting the WACC of REA:................................................................................................77ii. Identifying the impact of high WACC has on management’s evaluation on perspectiveinvestment project:.....................................................................................................................78i. Stating whether optimal capital structure is used by REA:..................................................88ii. Depicting what they have done to adjust their gearing ratio:..............................................89. Discussing the dividend policy adopted by the management:...............................................910. Providing recommendations why the company could be included in his/her portfolio:......9Reference and Bibliography:....................................................................................................10
FINANCE21. Formulating outline of the company, its core activities, factors in company’s activitiesand market:Real Estate Investar Group Limited mainly operations in the online market, wererelevant services and direct investment property opportunities are presented to Australianaand New Zealand investors. The company adequately operates through subscriptiontransaction services and property segments. The company adequately provides tools,resources, and new services to investors. In addition, the company adequately identifies,analyses, acquires, track and account for investment property (Rei-group.com.au 2018).Moreover, the company provides end-to-end solution to consumers regarding theirinvestment in property. The company is mainly operating in Australian market and hasrelevant competitors from different established companies. Lastly, the company conductsoperations such as property sales and mortgage broking in Australia.2i. Identifying the substantial shareholders:Main substantial shareholdersNumber of Share held% of issued shareINVIA CUSTODIAN PTY LTD10,627,91410.94%GOLDEN MAIL PTY LTD10,576,12510.88%HB SUPER HOLDINGS PTY LTD8,255,9838.50%POHUTUKAWA PTY LTD8,034,2818.27%LV2 PTY LTD7,924,7058.16%2ii. Identifying the people involved in firm governance:PositionName of the PersonsNon-Executive ChairpersonSimon BakerCEO and Managing DirectorClint GreavesIndependent non-executive DirectorJoe HannaIndependent non-executive DirectorIan Penman3i. Drafting the debt ratio, return on assets, and return on equity of REV:Particulars201720162015Net Profit After Tax (2,222,750) (1,365,347) (2,094,189)
FINANCE3Total Assets 4,728,346 7,052,950 2,661,357 Ordinary Equity 11,285,121 11,285,121 4,165,796 Total Liabilities 2,974,531 3,304,531 4,687,467 Return on Assets-47.01%-19.36%-78.69%Return on Equity-19.70%-12.10%-50.27%Debt Ratio62.91%46.85%176.13%Particulars2017EBIT (4,125,977)TA 4,728,346 NPAT (2,222,750)EBIT (4,125,977)TA 4,728,346 OE 11,285,121 NPAT/OE(EBIT/TA) * (NPAT/EBIT) * (TA/OE)NPAT/OE-19.70%3ii. Identifying the overall phenomenon captured by variable TA/OE:Particulars201720162015TA/OE41.90%62.50%63.89%From the evaluation of overall table difference between total assets and equity isdetracted. The table indicates that overall accumulation of assets has greatly reduced during2017, while the accumulation of ordinary assets remained same from 2016 to 2017. This isthe main reason behind the drastic fall in return from investment, which is been calculated inabove tables. The decline in percentage from 62.50 to 41.90% is an indication that thecompany has sold its asset during 2017, which drastically reduced its financial viability (Rei-group.com.au 2018). 3iii. Depicting the reason behind higher ROE and lesser ROA:Particulars201720162015Total Assets 4,728,346 7,052,950 2,661,357 Ordinary Equity 11,285,121 11,285,121 4,165,796
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Finance for Business - Masterslg...
|10
|1868
|455
HI5002 Finance Accounting Assignmentlg...
|10
|1898
|40
Financial Performance Evaluation of Qantas Airwayslg...
|18
|4053
|415
Finance for Business : Assignmentlg...
|24
|5739
|25
Finance for Business - Masterslg...
|13
|2409
|30
HI5002 Masters in Business Finance - Assignmentlg...
|10
|1643
|56