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Finance for Business - Assignment Sample

   

Added on  2021-06-17

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Running head: FINANCE FOR BUSINESS Finance for BusinessName of the StudentName of the UniversityAuthors NoteCourse ID
Finance for Business - Assignment Sample_1

FINANCE FOR BUSINESS1Table of ContentsIntroduction:...............................................................................................................................3Description of Company:...........................................................................................................3Ownership and structure of governance of the company:..........................................................4Main Substantial Shareholders:..............................................................................................4Main people involved in Company’s Governance:................................................................5Computation of Fundamental Ratios:........................................................................................7Short Term Solvency:............................................................................................................7Long Term Solvency:.............................................................................................................7Asset Utilization:....................................................................................................................8Profitability Ratios:................................................................................................................8Market Value Ratios:.............................................................................................................9Graphical Descriptions of Results:.............................................................................................9Movement in Monthly Share Price:.......................................................................................9Comparative Analysis of Movement in Share Price Index to All Ords Index:........................10Identifications of factors that influences the share price of the company:...........................10Calculations of Beta and the Expected Rate of Returns using CAPM:...................................12Computed Beta of the Company:.........................................................................................12Calculations of the required rate of Return using CAPM Model:.......................................12Justification behind the “Conservative Investment”............................................................12Explanation of WACC has on management evaluation of investment prospective:...............14
Finance for Business - Assignment Sample_2

FINANCE FOR BUSINESS2Debt Ratio:...............................................................................................................................14Dividend policy:.......................................................................................................................15Letter of Recommendations.....................................................................................................15Conclusion:..............................................................................................................................16References................................................................................................................................18
Finance for Business - Assignment Sample_3

FINANCE FOR BUSINESS3Introduction: The primary learnings of the study are based on analysing the financial perspectivesof “Adelaide Brighton Cement”, which is a cement manufacturing group based in Australia.The assessment of the financial performance we consider the movement of share prices andprovide relevant recommendations on the rational of investments in the stocks of thecompany. The comprehensive evaluation of financial performance will be performed bycombining the shareholding structures and many individuals involved in reporting thecorporate governance for “Adelaide Brighton Cement” (Adbri.com.au. 2018).The common financial ratios competition will be based on the financial statementpublished by the company in the last two years. In addition to this, the movement of the shareprices will be carried out by plotting the percentage changes in the closing share price from2016 to 2018. The understanding of capital structure will be considered with “weightedaverage cost of capital” which shall be used as the main model by considering the investmentmaking decision. In addition to this, solvency ratios such as debt equity ratio and dividendpolicy structure will be conducive in accompanying the recommendations and reason forinvesting in the shares of “Adelaide Brighton Cement” (Adbri.com.au. 2018).Description of Company: Adelaide Brighton established in 1882 is identified as a leading Australian integrated“construction materials and lime producing group”. Some of the main manufacturing andsupply line of the production process includes mineral processing, infrastructure, constructionand building materials. The principal activities encompass “production, importation anddistribution of clinker, cement, industrial lime, premixed concrete, aggregates and concreteproducts”. It is listed under “S&P/ASX100 company with 1400 employees”. The main
Finance for Business - Assignment Sample_4

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