Strategic Corporate Finance

Strategic Corporate Finance

Contents
Contents...........................................................................................................................................1
PART A...........................................................................................................................................2
INTRODUCTION...........................................................................................................................2
Five year performance analysis of ASTRO SDN BHD Price fluctuation:..................................3
Recommendation.........................................................................................................................5
PART C...........................................................................................................................................5
A) Valuation of Prince town share by using following method:.................................................5
B) Explanation of merger and acquisition help in achieving corporate finance objective:........7
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
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PART A
INTRODUCTION
Corporate finance is a field of finance, which provides guideline related with capital structure
decision, corporate funding, financial sourcing and capital budgeting. Business organizations
prepare corporate financial strategies for the purpose of maximizing their shareholders value. To
understand the concept of corporate financing Board of Directors of Potter PLC choose ASTRO
SDN BHD .
ASTRO SDN BHD is multinational corporation, which is situated in Kuala Lumpur Malaysia ,
It was established in 1996, it was start as television channel later they set up their broadcasting
channel and provides various broadcasting services to their customers. In this report financial
performance of ASTRO SDN BHD has been analysis. In this report financial decision taken
regarding merger and acquisition and importance of this policies in an organization have been
identified (Yu, 2013).
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Five year performance analysis of ASTRO SDN BHD Price fluctuation:
2015, prices of shares are 22.12. Prices of ASTRO SDN BHD was increases in 2016 from
22.12 to 23.22, it will be reduces in 2017 by 20.82 due to recession crises prices of ASTRO SDN
BHD is decrease till current period of time(Woolridge, 1988). Prices are fluctuate in ASTRO
SDN BHD organization due to various changes arises in Malaysian economy.
Business organization will be uses ratio analysis to identify their (Alam, 2017.)
performance status. Price earnings ratio will be decrease since 2016 due to heavy
competition and external environment factors. It was 26.04 in 2015 and 5.77 in current
period. Company earn profits from investing in their assets 7.51 ratio of returning assets
will be increase 9.03,9.47 in 2018 company earn 11.75 and in current period of time it
will be 9.22. There gross margin ratio was increase till 2017 compare to 2015 and 2016
but in 2018 gross ratio decrease to 38.54 . Net profit of this organization was increase
from 9.93 to 11.22 this depicts that company generate more benefits from its business
activities. There liquidity ratio states capacity of organization to pay their debt liabilities.
There debtor turnover ratio will be decrease means that it take times to recover amount
from their customers. These stock turnover ratio represent level of stock show capability
of an company to manage their stock level. There creditors payable days increase since
2015 it was 69.18 and it will be 136.55 days in 2020 this means that company take more
time to pay their debt liability it will be negatively impact n the overall performance stats
of the company. Ratio will provided knowledge to management department regarding
financial status of the organization. Due to problems arises in 2018, growth rate of Astro
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