Corporate Finance: Analysis of SEEK Limited's Performance

Running head: CORPOARATE FINANCE
Corporate finance
Name of the student
Name of the university
Student ID
Author note

1CORPORATE FINANCE2. Corporate governance
Executive summary
The main objective of the report is to analyse the performance of SEEK Limited through
analysing the company’s market performance, share performance, profitability analysis and
dividend policy of the company it is identified that the performance of the company is quite
satisfactory. The report will also compute the cost of debt, equity and cost of capital of the
company. Further, the report will also compare the share price movement with the all
ordinary index share.

2CORPORATE FINANCE2. Corporate governance
Table of Contents
1. Introduction.........................................................................................................................4
2. Corporate governance............................................................................................................4
2.1 Chief executive officer.....................................................................................................4
2.2 Board of directors.............................................................................................................5
2.3 Financial market consideration........................................................................................6
2.4 Corporate social responsibility....................................................................................7
3. Risk and return....................................................................................................................8
3.1 Sources of risk..................................................................................................................8
3.2 Historic risk parameters...................................................................................................8
3.3 Valuation of share price...................................................................................................9
3.4 Default risk and cost of debt..........................................................................................10
3.5 Capital structure.............................................................................................................10
4. Earnings and cash flow........................................................................................................11
4.1 Existing investment analysis..........................................................................................11
4.2 Competitor analysis........................................................................................................12
5. Financing sources.................................................................................................................12
5.1 Current financing...........................................................................................................12
5.2 Debt equity trade-offs and free cash flow......................................................................12
5.3 Financing cost of debt....................................................................................................13

3CORPORATE FINANCE2. Corporate governance
6. Dividend policy....................................................................................................................13
6.1 Historical dividend policy..............................................................................................13
6.2 Firm characteristics........................................................................................................13
7. Conclusions.......................................................................................................................13
Reference..................................................................................................................................15