HI5002: Finance for Business - Aneka Tambang Case Study

HI5002: Finance for business
1

Table of Contents
Introduction......................................................................................................................................3
1. Overview of company..............................................................................................................4
2. Ownership and governance structure of company...................................................................5
5. Research with the help of business publication and internet.................................................11
6. Calculation of required rate of return....................................................................................12
7. Calculation of weighted cost of capital.................................................................................13
8.. Evaluation on basis of debt ratio..........................................................................................15
9. Dividend policy.....................................................................................................................16
10. Letter of Recommendation..................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
2

Introduction
The business will be able to attain the required goals and objectives when the company will be
able to manage all the finance of the entity in an appropriate manner. For that, it will be needed
that all of the factors which are related to it shall be taken into account. For that, the structure of
the company shall be identified and the proper analyzation shall be made by the use of various
tools. In this report, the same will be made and for this, there will be a calculation which will be
made such as the cost of capital, ratios and rate of return. Then the announcements will be
determined which have been made. The dividend policy of the company will also be taken into
consideration and will be identified.
3

1. Overview of company
The Aneka Tambang is the company which was established in 1968 and was built by merging
various mining companies and projects. The incorporation of the company is made with this
name but afterwards, it was converted in the listed company. There are various activities which
are performed by the company such as excavation, exploration and processing by which various
elements such as silver, nickel ore, coal and various others (Antam, 2017). The company is
operating in the various area and was listed on the ASX in after period and there are operations
which are carried in Indonesia also. The company believe in the development of the community
and also on the environment as the activities which are performed in the business affects the
environment.
4