Managerial Finance Assignment in PDF
Added on 2022-08-19
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Running head: MANAGERIAL FINANCE
Managerial Finance
Name of the Student:
Name of the University:
Author’s Note:
Managerial Finance
Name of the Student:
Name of the University:
Author’s Note:
MANAGERIAL FINANCE1
Table of Contents
Report Overview..............................................................................................................................2
References........................................................................................................................................4
Appendix..........................................................................................................................................5
Table of Contents
Report Overview..............................................................................................................................2
References........................................................................................................................................4
Appendix..........................................................................................................................................5
MANAGERIAL FINANCE2
Report Overview
The investment valuation report has been specifically prepared for the Fortescue Metal
group whereby analysis of the company in the field of techniques and methods used by the
company for the purpose of maximizing the value of the shareholder’s has been well written
down (Bloomberg, 2020). The effectiveness shown by the management of the Fortescue Metal
Group can be well evaluated with the help of the return on shareholder’s equity that the company
would be generating in time period analyzed. The return on shareholder’s equity has been around
4.19% in the year 2015, which has well increased to the tune of 30.06% in the year 2019. The
increase in the return has been particularly due to the increased level of net profit that has been
reported by the company for the time period analyzed. On the other hand, the increase in the net
profit margin for the company has been from 3.65% to around 31.63% in the year 2015-2019
(Yahoo Finance, 2020). From the short-term perspective the return that the investors can expect
from the company has been determined with the help of the return that the company has provided
in the five year trend period which was around 39%. On the other hand the long term return that
is in the form of ROE generated by the company has been around 30% and the return that the
investor can well achieve in the long-term horizon is in buying the shares of the company which
had an intrinsic value of around $16.89 and the market value was around $11.29 showing an
upside potential of about 49.61% (Data Analysis, 2020). The historical share price and the
volume analysis of the shares movement has been done for the company for a sum of five years
as shown below:
Report Overview
The investment valuation report has been specifically prepared for the Fortescue Metal
group whereby analysis of the company in the field of techniques and methods used by the
company for the purpose of maximizing the value of the shareholder’s has been well written
down (Bloomberg, 2020). The effectiveness shown by the management of the Fortescue Metal
Group can be well evaluated with the help of the return on shareholder’s equity that the company
would be generating in time period analyzed. The return on shareholder’s equity has been around
4.19% in the year 2015, which has well increased to the tune of 30.06% in the year 2019. The
increase in the return has been particularly due to the increased level of net profit that has been
reported by the company for the time period analyzed. On the other hand, the increase in the net
profit margin for the company has been from 3.65% to around 31.63% in the year 2015-2019
(Yahoo Finance, 2020). From the short-term perspective the return that the investors can expect
from the company has been determined with the help of the return that the company has provided
in the five year trend period which was around 39%. On the other hand the long term return that
is in the form of ROE generated by the company has been around 30% and the return that the
investor can well achieve in the long-term horizon is in buying the shares of the company which
had an intrinsic value of around $16.89 and the market value was around $11.29 showing an
upside potential of about 49.61% (Data Analysis, 2020). The historical share price and the
volume analysis of the shares movement has been done for the company for a sum of five years
as shown below:
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