Capital Structure and Risk Management: A Detailed Analysis of AMP Ltd
VerifiedAdded on 2023/06/04
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This report provides a comprehensive analysis of AMP Limited's capital structure and risk management system. It begins with an introduction to the company and an evaluation of its current capital structure, including the calculation of the Weighted Average Cost of Capital (WACC) and cost of equity. The report compares AMP's capital structure with that of its competitor, Commonwealth Bank, and analyzes key financial ratios to determine AMP's performance. Significant changes in the company's capital structure are identified, along with an assessment of its management of seven identified risks. The report concludes that AMP needs to improve its capital structure by increasing its debt component and maintaining its liquidity position, while also addressing previously unmanaged risks to ensure effective risk management.
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