Analysis of Financial Management and Requirements for Becoming a Publicly Listed Corporation

Report on the analysis

Table of Contents
Overview..........................................................................................................................................3
Main Body.......................................................................................................................................3
A. Calculation of NPV.................................................................................................................3
B. Several requirements, conditions and costs associated with becoming a publicly listed
corporation...................................................................................................................................4
1. 10 major specific requirements................................................................................................4
2. ASX profit test and asset test requirements.............................................................................5
3. Different costs that the company will have to meet in the process.........................................5
REFERENCES................................................................................................................................8

Overview
In company, financial management could be just as vital as processing and sale. Finance is
required for a company to begin operations, adequate, and expand or develop. As a result,
finance seems to be a crucial operational function of company. Good financial programs and
policies need essential to make efficient use of resources and also to give a decent level of
profitability. Inadvisable finance, like a bad product, inadequate marketing, or expensive
manufacturing expenses, may quickly push a company into insolvency. In several other words,
financial accounting is the integration of a company's financial assets. The management entails
corporate development ideas. It refers to an organization's financial assets (Agrawal and et.al.,
2017).
The correct administration of a group's finances is required to ensure the efficient operation of
the business. It delivers reliable service and high-quality gasoline. An agency's funds must be
appropriately managed. If this does not happen, companies will encounter roadblocks that might
stifle their learning and expansion. In this report, calculation of NPV and IRR for given case
study is discussed. In addition, several requirements, conditions and costs associated with
becoming a publicly listed corporation, 10 major specific requirements, ASX profit test and asset
test requirements and different costs that the company will have to meet in the process.
Main Body
A. Calculation of NPV
Actual investment = $166,000,000
Cash flow in 1st year = $50,000,000
Rate of increase in cash flow = 10%
Rate of return = 17 %
Year Cash flow
1 $50,000,000
2 $55,000,000
3 $60500000
4 $66550000
5 $73205000
6 $80525500