Financial Analysis of Integrated Media Technologies Ltd
Added on 2020-05-11
21 Pages2256 Words133 Views
RUNNING Head: Financial analysis of Integrated Media Technologies Ltd
1
Name of the student
Topic- Financial analysis of Integrated Media Technologies Ltd
University name
1
Name of the student
Topic- Financial analysis of Integrated Media Technologies Ltd
University name
Financial analysis of Integrated Media Technologies Ltd
2
Executive summary
This report has shown the clear understanding on the capital structure of the company and
how company could maintain effective capital structure. It is evaluated that there are several
financial tools which could be undertaken for evaluating the business functioning and growth of
business.
2
Executive summary
This report has shown the clear understanding on the capital structure of the company and
how company could maintain effective capital structure. It is evaluated that there are several
financial tools which could be undertaken for evaluating the business functioning and growth of
business.
Financial analysis of Integrated Media Technologies Ltd
3
Table of Contents
Executive summary................................................................................4
Introduction............................................................................................5
Answer to question-1.............................................................................5
Short term and long term debts of company.....................................................5
Consistency of debt structure of company.......................................................6
Company and industry operates its debt to influence the proportion of short-term to
long-term debts.................................................................................................6
Computation of cost of debt........................................................................7
Answer to question no-2.........................................................................8
Company’s cost of equity...........................................................................8
Evaluate and discuss your company’s revenue, earnings, EPS, dividends and growth
Expectations.....................................................................................................8
Growth expectation of company...................................................................9
Computation of PE ratio...........................................................................10
Comparable value...................................................................................10
Additional data and information would be preferred to value of the assets.............11
Answer to question no-3.......................................................................12
Computation of weighted average cost of capital.............................................12
Explanation of tax rate in relation to WACC..................................................12
3
Table of Contents
Executive summary................................................................................4
Introduction............................................................................................5
Answer to question-1.............................................................................5
Short term and long term debts of company.....................................................5
Consistency of debt structure of company.......................................................6
Company and industry operates its debt to influence the proportion of short-term to
long-term debts.................................................................................................6
Computation of cost of debt........................................................................7
Answer to question no-2.........................................................................8
Company’s cost of equity...........................................................................8
Evaluate and discuss your company’s revenue, earnings, EPS, dividends and growth
Expectations.....................................................................................................8
Growth expectation of company...................................................................9
Computation of PE ratio...........................................................................10
Comparable value...................................................................................10
Additional data and information would be preferred to value of the assets.............11
Answer to question no-3.......................................................................12
Computation of weighted average cost of capital.............................................12
Explanation of tax rate in relation to WACC..................................................12
Financial analysis of Integrated Media Technologies Ltd
4
Why there is difference in cost of debt and cost of equity..................................12
Should current liabilities be included in cost of capital?....................................13
Major value of the WACC calculation..........................................................13
Integrated Media Technologies Ltd has used WACC in investment decision..........13
Capital structure of company with the relevancy of the industry..........................14
Capital structure and what economic circumstances.........................................14
Answer to question-4...........................................................................16
Market analysis......................................................................................16
Current literature search...........................................................................16
Uniqueness of Integrated Media Technologies Ltd..........................................16
Conclusion............................................................................................17
References...........................................................................................18
Integrated.............................................................................................18
4
Why there is difference in cost of debt and cost of equity..................................12
Should current liabilities be included in cost of capital?....................................13
Major value of the WACC calculation..........................................................13
Integrated Media Technologies Ltd has used WACC in investment decision..........13
Capital structure of company with the relevancy of the industry..........................14
Capital structure and what economic circumstances.........................................14
Answer to question-4...........................................................................16
Market analysis......................................................................................16
Current literature search...........................................................................16
Uniqueness of Integrated Media Technologies Ltd..........................................16
Conclusion............................................................................................17
References...........................................................................................18
Integrated.............................................................................................18
Financial analysis of Integrated Media Technologies Ltd
5
5
Financial analysis of Integrated Media Technologies Ltd
6
Introduction
In this report, financial analysis and computation of weighted average cost of capital has
been taken into consideration. There are several points which are included by company while
evaluating its business performance and optimum capital structure.
Present details of Integrated Media Technologies Ltd
Integrated Media Technologies Ltd is a technologies investment, product development and
distribution company. This company has been running its business on international level
Answer to question-1
Short term and long term debts of company
After evaluating the annual report of company, it is considered that Integrated Media
Technologies Ltd was not having short term debts in 2015 and after that it increased its short
term debt to AUD $ 4 million. However, company has maintained AUD $ 3 million short term
debt as compared to industrial average debt (Integrated Media Technologies Ltd, 2016).
Particular 2015 2016 Industrial average debt
AUD in
Million AUD in Million AUD in Million
Short term debts 0 4 7
Long term debts 24 21 27
6
Introduction
In this report, financial analysis and computation of weighted average cost of capital has
been taken into consideration. There are several points which are included by company while
evaluating its business performance and optimum capital structure.
Present details of Integrated Media Technologies Ltd
Integrated Media Technologies Ltd is a technologies investment, product development and
distribution company. This company has been running its business on international level
Answer to question-1
Short term and long term debts of company
After evaluating the annual report of company, it is considered that Integrated Media
Technologies Ltd was not having short term debts in 2015 and after that it increased its short
term debt to AUD $ 4 million. However, company has maintained AUD $ 3 million short term
debt as compared to industrial average debt (Integrated Media Technologies Ltd, 2016).
Particular 2015 2016 Industrial average debt
AUD in
Million AUD in Million AUD in Million
Short term debts 0 4 7
Long term debts 24 21 27
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