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Financial Analysis of Company - APN Outdoor

   

Added on  2020-03-28

13 Pages1521 Words41 Views
Running Head: Financial analysis of company1Financial analysis implementation

Financial analysis of company2Part-BExecutive summary This report has shown key understanding on the financial analysis and using severalfinancial tools such as ratio analysis, capital structure analysis and capital budgeting analysis.This report has shown how APN Outdoor Company has performed its business throughout thetime. However, APN Outdoor company has shown high amount of growth throughout the time.

Financial analysis of company3Table of ContentsPart-B...........................................................................................................................................................2Executive summary.....................................................................................................................................2Introduction.................................................................................................................................................4Comparing Firm’s Capital Structure.........................................................................................................4Analysis of Financial Ratios of APN Outdoor Company............................................................................7Significant Changes in the Capital Structure in Past Three Years.............................................................7Wealth Maximization in Past Three Years...............................................................................................8Importance of Minimization of the Cost of Capital..................................................................................8Recommendations for Lowering the Cost of Capital...............................................................................8Conclusion...................................................................................................................................................9References.................................................................................................................................................10

Financial analysis of company4Introduction In this report, financial performance and capital structure of APN Outdoor Company. Itis an Australian company which has been providing media and advertisement services to clients.This company has increased its overall profit since last three years and shown high valuecreation on its investment. This report has shown the capital structure and ratio analysis ofcompany in determined approach. Comparing Firm’s Capital StructureCapital structure of company is accompanied with debt and equity capital portion ofcompany. Ideally, each and every company should maintain capital structure of 30 % debt and70% equity. The WACC of APN Outdoor Company has been computed as below (Gitman,Juchau, & Flanagan, 2015).Cost of EquityCAPM ModelRisk free rate ofreturn2.40%Beta1.3Market Rate ofReturn7%Cost of Equity8.38%

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