logo

Finance For Business (doc)

17 Pages2700 Words63 Views
   

Added on  2020-05-16

Finance For Business (doc)

   Added on 2020-05-16

ShareRelated Documents
Running head: FINANCE FOR BUSINESSFinance for Business Name of Student:Name of University:Author’s Note:
Finance For Business (doc)_1
1FINANCE FOR BUSINESSTable of ContentsIntroduction......................................................................................................................................31.Brief description of the company............................................................................................32.Ownership-governance structure.............................................................................................3i.Substantial shareholders.......................................................................................................3ii.The main people involved....................................................................................................43.Calculation of Key Ratios........................................................................................................4i.Ratio Calculation..................................................................................................................4ii.TA/OE Impacting on the relationship between ROA and ROE...........................................6iii.Rationale for ROE significantly greater than ROA..........................................................64.Using the information from the ASX website.........................................................................7i.Graph for movements in the monthly share price over the last two years...........................7ii.Comparison of movements in the companies’ share price index.........................................75.Research via the internet or financial/business publications...................................................76.Capital Asset Pricing Model....................................................................................................8i.Calculated beta (β) for the company.....................................................................................8ii.Rate of return for the companies’ shares..............................................................................9iii.Rationale for conservative investment............................................................................107.Weighted Average Cost of Capital (WACC)........................................................................10
Finance For Business (doc)_2
2FINANCE FOR BUSINESSi.WACC Calculation.............................................................................................................10ii.Management’s evaluation of WACC..................................................................................118.Debt Ratio of the Company over the past two years.............................................................11i.Working towards the maintenance of a preferred optimal capital structure.......................11ii.Amendments on gearing ratio.............................................................................................129.Dividend Policy.....................................................................................................................1210.Letter of recommendation to the client...............................................................................12Conclusion.....................................................................................................................................13List of Bibliography.......................................................................................................................15
Finance For Business (doc)_3
3FINANCE FOR BUSINESSIntroductionThe report aims to outline the core activities of and the market in which the company isseen to be operating. Some of the important concepts of the financial aspects of the discussion isseen with calculation of the key ratios, evaluating the information from ASX website, evaluationof WACC and calculating the rate of return. In addition to this, the learnings from the report hasevaluated Rate of return for the companies’ shares, Amendments on gearing ratio and Workingtowards the maintenance of a preferred optimal capital structure.1.Brief description of the companyEmmerson resources is considered as Australia’s one of the most eminent Tennant Creekmineral field holder. This field is characterised with the use of extremely high quality of gold& gold-copper deposits. The company has produced in excess of 5.5 million ounces of goldand 488000 tonnes of copper. The main operations of the company are owned by WarregoGold Plant which is located 35 kilometres north-west of Tennant Creek having an annualcapacity of 300000 tonnes.2.Ownership-governance structurei.Substantial shareholdersThe two main shareholders of the company are identified with “Evolution MiningLimited” and “J P Morgan Nominees Australia”. “Evolution Mining Limited” constitutesof 49,144,000 shares having a total percentage of 12.92% and J P Morgan NomineesAustralia” constitutes of 45,236,446 shares having a total percentage of 11.89 %.
Finance For Business (doc)_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
HI5002 : Finance for Business Assignment
|16
|2223
|31

Business for Finance - Report
|12
|2434
|30

Business Assignment on Finance
|13
|2829
|124

Assignment on Finance for Business
|13
|2488
|60

Finance for Business Analysis Report
|22
|4778
|368

HI5002 Masters in Business Finance - Assignment
|10
|1643
|56