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BUS5IAF Financial Analysis of Regional Express

   

Added on  2020-05-11

18 Pages2153 Words53 Views
RUNNING HEAD: Financial analysis of Regional express1Name of the studentTopicUniversity name

Financial analysis of Regional express2Executive summary This data and financial results calculated in this report, has been taken from the annualreport and implementing proper analysis. The financial analysis has been made on RegionalExpress Company evaluate its WACC and financial performance of company. Table of ContentsExecutive summary..............................................................................................................2Introduction.........................................................................................................................2Present description of company.......................................................................................2Answer to question-1..........................................................................................................2Short term and long term debts of company....................................................................2Consistency of debt structure of company.......................................................................3Company and industry operates its debt to influence the proportion of short-term to long-term debts............................................................................................................................4Computation of cost of debt............................................................................................5Answer to question no-2.....................................................................................................6Company’s cost of equity................................................................................................6Evaluate and discuss your company’s revenue, earnings, EPS, dividends and growth Expectations.................................................................................................................................6

Financial analysis of Regional express3Growth expectation of company......................................................................................7Computation of PE ratio..................................................................................................9Comparable value............................................................................................................9Additional data and information would be preferred to value of the assets....................9Answer to question no-3...................................................................................................10Computation of weighted average cost of capital..........................................................10Explanation of tax rate in relation to WACC................................................................10Why there is difference in cost of debt and cost of equity............................................10Should current liabilities be included in cost of capital?...............................................11Major value of the WACC calculation..........................................................................11Regional Express Holdings Ltd has used WACC in investment decision....................12Capital structure of company with the relevancy of the industry..................................13Capital structure and what economic circumstances.....................................................13Answer to question-4........................................................................................................15Market analysis..............................................................................................................15Current literature search................................................................................................15Uniqueness of Regional Express Holdings Ltd.............................................................15Conclusion..........................................................................................................................16References.........................................................................................................................17

Financial analysis of Regional express4

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