Project Report: Finance

Running Head: Finance 1
Project Report: Finance

Finance 2
Contents
Introduction.......................................................................................................................3
1Company description......................................................................................................3
2. Ownership governance structure..................................................................................3
3. Fundamental ratios........................................................................................................5
4. Stock price....................................................................................................................9
5. Changes into the stock price.......................................................................................10
6. Calculations................................................................................................................10
7. WACC........................................................................................................................11
8. Debt ratio....................................................................................................................12
9. Dividend policy..........................................................................................................13
10. Letter of recommendation.........................................................................................13
References.......................................................................................................................15
Appendix.........................................................................................................................16

Finance 3
Introduction:
The report emphasizes on the investment opportunity of an organization. This report
has been prepared to offer a recommendation to client of the company about the investment
into a particular company, for this project, ELK petroleum limited company has been taken
into the concern of the study. For evaluation the investment opportunity of the company,
product, services, industry hospital etc of the company has been studied firstly and further the
study has been conducted on the governance structure of the company to identify the
manipulation of the final financial statement of the company.
In addition, the report focuses on the financial statement, stock price, debt cost, equity
cost, total cost of capital, debt position, dividend policy etc to recommend the client about the
short term and long term investment into the company. The report explains that the
investment into the company could be risky in current period as the performance of the
company in continuously decreasing.
1. Company description:
ELK petroleum limited is an oil and gas company which develops and produces the oil
and gas product in the United States and Australian market. The major activities of the
company includes carbon dioxide (CO2) which enhances the enhanced oil recovery project in
the Wyoming’s Grieve oil filed in the united states. The subsidiary companies of the
company are also involving into various oil and gas projects (Reuters, 2018). The company
has been listed in Australian stock exchange in the year of 2004 and from that time it is
trading its stock from one stock exchange only. The current projects of the company are one
of the largest projects in US market and it has helped the company to enhance the market and
financial base (Home, 2018).
2. Ownership governance structure:
Ownership governance of an organization explains about the top people and investors
who invests and holds the most of the stock of the company. On the basis of the study on the
annual report (2017) of the company, it has been recognized that the there are only one
company which has more than 20% ownership in the company. HSBC CUSTODY
NOMINEES (AUSTRALIA) LIMITED holds 267,130,763 shares in the company which is
31.18% of total stock of the company. HSBC CUSTODY NOMINEES (AUSTRALIA)
LIMITED is not related with the directors and the board of members of the company.

Finance 4
Figure 1: Shareholders information
Further, CITICORP NOMINEES PTY LIMITED and MR ROBERT ANTHONY
HEALY are two more people who have more than 5% ownership in the stock of the
company. They have 7.03% and 6.26% ownership in the company.
Main people:
Main people are the term which is used for the people who plans and implements all
the activities of the business. Main people include all the board members, executive directors,
chief executive officer, chief financial officer etc.
In case of ELF petroleum limited, it has been found that the main people of the
company are as follows:
The chairman Nealy Taylor
Board members Bradely Lingo
Board members Russell Krause
Board members Tim Hargreaves