JMD 1560 Accounting 1: Stock Analysis, WACC, and Dividend Policies

This report provides a comprehensive analysis of two Australian banking companies, Auswide Bank Ltd. (ABA) and Westpac Banking Corporation (WBK), over a three-year period from July 2015 to July 2018. The analysis includes the calculation of daily stock price returns and market index returns, determination of total risk, systematic risk, and unsystematic risk for each company's stock annually. Furthermore, the weighted average cost of capital (WACC) is calculated for both companies for each year, with an explanation for any differences observed. The dividend policies of the two companies are compared and contrasted by calculating dividend payout ratios. Finally, the report concludes with a recommendation on which company's shares to purchase with a hypothetical $10 million inheritance, based on the analysis conducted. Desklib offers a wealth of similar solved assignments and study tools for students.