Project Report on Accounting and Finance

Added on - 31 May 2021

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Running Head: Accounting and finance1Project Report:Accounting and finance
Accounting and finance2Executive summaryEvaluation on the final financial statement of a business is important for each of theanalyst and the investors to reach over a conclusion about the position of the business and thereturn from the business. The various financial tools make it easier for the investors to reachover a conclusion rapidly. In the report, the capital structure, WACC position and financialratio study has been performed on the company to evaluate that whether the company is agood option for the purpose of investment or not.
Accounting and finance3ContentsIntroduction.......................................................................................................................4Capital structure................................................................................................................4WACC..............................................................................................................................5Changes into capital structure...........................................................................................6Ratio analysis....................................................................................................................7Material risk......................................................................................................................7Conclusion........................................................................................................................8Bibliography.....................................................................................................................9Appendix.........................................................................................................................10
Accounting and finance4Introduction:AMP is a Australian company which offers various banking services to its clients.The main product of the company includes superannuation, investment products, insurance,banking products and the financial services to Australian and New Zealand people. In theyear of 1989, the company has come into existence. The bank is performing well in theAustralian market along with a good market share.Capital structure:In the case of AMP, the debt and equity level of the business has been collected andmeasured to identify the capital structure position of the business.The debt level of the company is 13% against the total capital and on the other hand,the weight of equity position is 87%. It brief higher equity of the company which would leadto business towards lower associated risk but higher cost of capital of the business1.AMPDebt1,11613.42%Equity7,20286.58%8,318100.00%The capital structure position of AMP has been compared with the ANZ bank ofAustralian to recognize that capital level of the business in the industry. On the basis of thebelow chart, it has been recognized that the debt level of Amp is higher and the equity levelof ANZ is higher. Further, it explains that the AMP is required to improve the debt level inthe market to manage the cost and the financial gearing position of the business.1Brigham, E, and Phillip D.Intermediate financial management. Nelson Education, 2012.
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