Comprehensive Financial Analysis of APN Outdoor Group (2016)

This report provides a comprehensive financial analysis of APN Outdoor Group (ASX: APO) for the 2016 financial year. It begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives. The shareholder analysis section identifies the types of investors and differentiates between marginal and non-marginal shareholders, with supporting data from the annual report. A detailed risk and return analysis examines APN Outdoor Group's risk profile, return calculations for 2016, and capital projects, including the proposed merger with oOh! Media Ltd. The cost of capital section explores the cost of equity using both the CAPM and dividend growth models, the cost of debt, corporate tax, and the weighted average cost of capital (WACC). The report concludes with a financial statement analysis, including performance and other financial ratios, to assess APN Outdoor Group's overall financial health. The analysis uses data from the 2016 financial statements and stock prices, providing a thorough evaluation of the company's financial performance during that period.

APN Outdoors Group Ltd

EXECUTIVE SUMMARY
APN Outdoor Group (ASX: APO) is an Australian listed firm which specializes in offering
advertising services including static roadside billboards, digital billboards, rail, transit
and airport advertising in both Australia and New Zealand. It was listed in the ASX in
November 2014. 1
The company boasts over 50,000 high impact sites and is committed to be the leaders
in the outdoor advertising industry by constantly investing in cutting-edge digital
innovation and developments to produce quality results.2
1 Quadrant Private Equity, "APN OUTDOOR." Quadrant Private Equity. 2017.
http://quadrantpe.com.au/Investments/Quadrant-Private-Equity-No-3/Portfolio/APN-Outdoors.aspx.
2 APN Outdoors,” About Us.”2017. https://www.apnoutdoors.com.au.
i

TABLE OF CONTENTS
EXECUTIVE SUMMARY..........................................................................................................................i
TABLE OF CONTENTS...........................................................................................................................ii
LIST OF TABLES.....................................................................................................................................iv
CHAPTER 1 : INTRODUCTION.............................................................................................................1
CHAPTER 2 : SHAREHOLDER ANALYSIS.........................................................................................2
2.1 Type of Investors............................................................................................................................2
2.2 Marginal and Non-marginal Shareholders..................................................................................2
CHAPTER 3 : RISK AND RETURN ANALYSIS...................................................................................5
3.1 Risk Profile......................................................................................................................................5
3.2 Returns for 2016 Financial Year...................................................................................................6
3.2.1 Returns- APN Outdoor Group...............................................................................................6
3.2.2 Returns- Australian All Ordinary Index.................................................................................7
3.3 Capital Projects..............................................................................................................................7
CHAPTER 4 : COST OF CAPITAL........................................................................................................9
4.1 Introduction.....................................................................................................................................9
4.2 Cost of Equity..................................................................................................................................9
4.2.1 CAPM Model............................................................................................................................9
4.2.2 Dividend Growth Model........................................................................................................10
4.2.3 Dividend Growth Model Vs CAPM......................................................................................11
4.3 Cost of Debt..................................................................................................................................11
4.4 Corporate Tax...............................................................................................................................11
4.5 Weight of Debt and Equity..........................................................................................................12
4.6 Weighted Average Cost of Capital.............................................................................................12
4.7 Discussion on Cost of Capital.....................................................................................................12
CHAPTER 5 : FINANCIAL STATEMENT ANALYSIS.......................................................................14
5.1 Introduction...................................................................................................................................14
5.2 Performance Ratios.....................................................................................................................14
5.3 Other Ratios..................................................................................................................................16
REFERENCES........................................................................................................................................18
APPENDIX A: Top 20 Security Holders...............................................................................................20
ii

APPENDIX B: Weekly Returns- APO.AX and AORD........................................................................21
APPENDIX C: Beta and Cost of Equity...............................................................................................22
iii

LIST OF TABLES
Table 2-1: Substantial Shareholders................................................................................3
Table 2-2: Marginal Vs Non-Marginal...............................................................................3
Table 4-1: Type of Debt- APN..........................................................................................9
Table 5-1: Financial Ratios- APN Outdoor Group..........................................................11
Table 5-2: Financial Ratios- oOH! Media Ltd.................................................................11
iv

CHAPTER 1: INTRODUCTION
The purpose of this report is to provide an overview of APN Outdoor Group’s
shareholders, its risk return analysis, the weighted average cost of capital and its
financial statement analysis.
The period under investigation was the 2016 financial year. All the calculations are
based on the 2016 financial statements and stock prices.
1

CHAPTER 2: SHAREHOLDER ANALYSIS
2.1 Type of Investors
APN Outdoor Group is a leading outdoor advertising company in New Zealand and
Australia (APN Outdoors 2017). The company was listed in the ASX in November 2014
and it has a market share of 27% in Australia and 34% in New Zealand3.
As a result, many investors would be attracted to the company because of its leading
position, premium sites in Australia and New Zealand, attractive industry growth
opportunities and high barriers to entry with long term contracts.
From the chairman’s 2016 report, we observe the dividend policy has been
emphasized, suggesting that investors expect returns in the form of dividends.
Furthermore, he reports on the expected wealth creation through the proposed merger
with oOh! Media and the its increased investment in technology4.
Consequently, we expect the following group of investors would invest in the group.
 Institutional Investors
 Private Equity Firms
 Hedge funds
2.2 Marginal and Non-marginal Shareholders
A marginal shareholder typically owns a significant portion of stock in comparison to a
non-marginal shareholder. Typically they include banks and their nominees. Appendix A
lists the top 20 largest holders of quoted equity securities.
3 Quadrant Private Equity, "APN OUTDOOR." Quadrant Private Equity. 2017.
http://quadrantpe.com.au/Investments/Quadrant-Private-Equity-No-3/Portfolio/APN-Outdoors.aspx.
4 APN Outdoors, “About Us” 2017. https://www.apnoutdoors.com.au.
2

We observe that APN Outdoor Group’s largest security holder was HSBC Custody
Nominees (Australia) limited who have 25.71% interest in the company, followed by JP
Morgan Nominees Australia Limited who has an interest of 24.7%.
These two nominee accounts do not give us much information on the actual
shareholders. Therefore we can assume these are fund managers. Nonetheless, on
page 96 of the annual report, the company has shared a list of substantial holders of
ordinary shares (See Table 2-1).
Shareholder Shareholding %
MAWER INVESTMENT MANAGEMENT LTD 9.58
ELLERSTON CAPITAL 9.57
GOLDMAN SACHS 8.63
AUSTRALIAN SUPER PTY LTD 8.00
YARRA FUNDS MANAGEMENT LTD 6.43
UBS AG AND ITS RELATED BODIES CORPORATE 5.26
JCP INVESTMENT PARTNERS 5.02
Table 2-1: Substantial Shareholders
We observe that Mawer Investment, a private investment fund registered in Canada,
had the highest shareholding (9.58%) followed by Ellerston capital (9.57%) and
Goldmansachs (8.63%) which are both large investment firms and funds. If we assume
that these shareholders are non-marginal then Table 2-2 shows the percentage of
marginal vs non-marginal investors.
Type of Investor Shareholding %
Marginal 47.51
Non-Marginal 52.49
Table 2-2: Marginal Vs Non-Marginal
3

Given that the firm has significant institutional holdings and small insider holdings, we
can assume the marginal investor is almost a diversified, institutional investor5.
5 Andrew Jacobson , "Identifying the Marginal Investor." Andrew Jacobson Financial. May 3, 2017.
https://www.ajjacobson.us/finance-analysis/identifying-the-marginal-investor.html.
4

CHAPTER 3 : RISK AND RETURN ANALYSIS
3.1 Risk Profile
The company has been in the media in the past months due to its failed $1.6 billion
merger with Ooh media Ltd, a rival company in the advertising industry (oOH! Media Ltd
2017). As a result, APN reported its net profit after tax fell to $15.8 million for the first
half in 2017, due in part to a $3.4m pre-tax cost from the merger.6
Other potential risks to the company are as follows:-
 Slow demand for outdoor media product
Improvement in technology is increasing the number of media choices available to
audiences. These developments and new ways for advertisers to reach consumers
may cause changes in consumer behavior.
 Risk of losing major contracts
APN Outdoor holds leases to various site locations. Many of these contracts require
APN Outdoor to participate in a tender at each renewal. Should the company not
have a competitive bidding process, it risks losing its major contract renewals.
 Tight Government Regulation
Changes in regulatory controls on outdoor advertising will affect the roll out of new
digital signs which will affect the company’s revenues. 7
3.2 Returns for 2016 Financial Year
Appendix B shows the weekly returns of APN Outdoor and the Australian All Ordinary
Index over financial year 2016. The total return to the shareholder is calculated as the
capital growth plus the dividend received.
6 Stephen Brook, "Failed oOh! merger leaves $3.4m sting in tail for APN Outdoor." The
Australian. August 22, 2017. http://www.theaustralian.com.au/business/media/failed-ooh-merger-
leaves-34m-sting-in-tail-for-apn-outdoor/news-story/53d92d5019fd602c592aadb80a9d8eb8.
7Morgans, "APN Outdoor: Stuck in Transit." Morgans. 21 August, 2017.
https://my.morgans.com.au/research/8D63900F-96B6-454B-BB14-5DD2F2670856.pdf?u=9b6e4620-
b777-4faa-824c-18d547e2ca31.
5

3.2.1 Returns- APN Outdoor Group
The capital growth can be calculated by taking the difference between start and ending
share price for the 2016 financial year and dividing by start price. Hence, the capital
growth (loss) of APN Outdoors is calculated as below:-
-3.115% = $ 5.91−$ 6.1
$ 6.1
The company paid two dividends in the 2016 financial year as follows:
 A final dividend for the year ended 31 December 2015 of 11 cents per ordinary
share, fully franked paid on 22 April 2016
 Interim dividend for the half year ended 30 June 2016 of 6.5 cents per ordinary
share, fully franked paid on 21 October 2016. 8
To gross up the fully franked dividend, the dividend should be divided by 70%. This is
because the dividend is paid out of after tax earnings which are taxed at 30% for
franking credit purposes.
So, for the APN outdoors the fully franked dividend is as below
 A final dividend of 15.71 cents
 An interim dividend of 9.29 cents
The dividend yield can be calculated as the total dividend divided by initial share price.
Hence, the dividend yield on APN Outdoors is calculated as below:-
4.537% = $ 0.157+$ 0.929
$ 5.51
Thus the total return to the shareholder is 1.422% (4.537% -3.115%)
8 APN Outdoor,"2016 Annual Report Page 71: APN Outdoor Group Limited ." APN Outdoor.
February 22, 2017.
6

3.2.2 Returns- Australian All Ordinary Index
The Australian All Ordinaries (AORD) will be used as a proxy to the market. The total
return can be calculated by taking the difference between initial and final index for the
2016 financial year and dividing by initial index. Hence, the total returns on the
Australian All Ordinary Index is calculated as
13.263% = 5719.1−5049.4
5049.4
Since the returns on APN are lower than the returns on the market, the company did
not perform well in 2016.
3.3 Capital Projects
In December 14 2016, the company announced plans to merge with Ooh! Media Ltd, a
rival company in the advertising industry. The merger would represent a great
opportunity for shareholders as it would combine two companies to create a leading
media group. Furthermore, it would increase returns and lead to cost synergies9.
Following the announcement in December 2016, we note the company share price
increased to $5.99 in response to the merger news. Figure shows the share price 15
days before and after the announcement in December 14, 2016. This suggests that the
market is semi efficient.
9 APN Outdoor,"2016 Annual Report: APN Outdoor Group Limited ." APN Outdoor. February 22,
2017. http://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_APO_2016.pdf.
7

11/13/2016
11/15/2016
11/17/2016
11/19/2016
11/21/2016
11/23/2016
11/25/2016
11/27/2016
11/29/2016
12/1/2016
12/3/2016
12/5/2016
12/7/2016
12/9/2016
12/11/2016
12/13/2016
12/15/2016
12/17/2016
12/19/2016
12/21/2016
12/23/2016
12/25/2016
12/27/2016
12/29/2016
4.5
4.7
4.9
5.1
5.3
5.5
5.7
5.9
6.1
APN Share Prices
Stock Price
Figure 3-1: APN Share Price Before and After Merger Announcement
8

CHAPTER 4: COST OF CAPITAL
4.1 Introduction
The WACC is the weighted average after tax cost of debt and equity 10. The components
of the WACC are as follows
 Cost of equity
 Cost of debt
 Corporate tax rate
 Weight of Equity
 Weight of Debt
4.2 Cost of Equity
The cost of equity can be determined using the CAPM model or the Dividend growth
model.
4.2.1 CAPM Model
The CAPM model is defined as Re = rf +β(rm –rf) , where rf = Risk free rate, β= Beta, (rm –
rf)= Risk premium.
Risk Free Rate
The 10-year Australian government bond was used as a proxy for the risk free asset.
The historical data for the period was downloaded and total returns calculated as
3.14%11.
Return on Market
The return on the market is the return on the All Ordinary Australian Index. This figure
was calculated in section 3.2.2 as 13.263%.
Beta
10 Investopedia,"The WACC is the weighted average after tax cost of debt and equity."
Investopedia. 2017. http://www.investopedia.com/terms/w/wacc.asp?adtest=video-idx-1.
11 Bloomberg," Australia Govt Bonds Generic Yield 10 Year." Bloomberg. 2017.
https://www.bloomberg.com/quote/GACGB10:IND (accessed October 2, 2017).
9

A beta value of 1.16 was calculated using the slope function in excel on the excess
returns of APN Outdoor and the market index. (See appendix C).
Cost of Equity
Therefore, the cost of equity for APN Outdoor based on CAPM approach is 14.92%.
See appendix C)
4.2.2 Dividend Growth Model
The dividend growth model assumes the price of stock is the present value of all future
dividend payments at some discount rate. It assumes a firm will pay a dividend at a
constant growth rate.
The models calculates the cost of equity as follows
Re= D1/P0 + g
Where D1 = dividend paid for period , P0 = share price at the beginning and g = growth
factor
We observed the company made a dividend payment of 25 cents and the initial share
price in 1 Jan 2016 was $5.51. To calculate the constant growth factor, we can use the
formula below.
g = (1 – Pay out Ratio) * Return on Equity
=(1 – dividend/eps12) * net income/shareholder’s equity
Using the annual report, we calculate the growth factor as follows:-
g = (1-0.25/0.2908)*48446/269,199 =2.525%
Hence, using the dividend growth model, the cost of equity is equal to 7.05%.
12 2016 Annual Report: APN Outdoor Group Limited -Page 43
10

4.2.3 Dividend Growth Model Vs CAPM
The dividend growth model is a better model for estimating expected returns as it
incorporates the future. The CAPM model is only based on systematic risk and thus is
not concerned with unsystematic risk specific to an individual firm, because investors
can avoid unsystematic risk via diversification.13
Given that APN Outdoors declare dividends annually, we recommend using the rate of
return under the dividend growth model over the CAPM
4.3 Cost of Debt
To calculate the cost of debt we need to divide the total debt by the interest expense. In
2016, the cost of debt for APN Outdoor was 2.77%. Table 4-1 shows the type of loans
the company took out. As noted, in 2016 the company only took out long term debt. This
loan was a secured over its assets.
2016 2015
Short Term Debt 0 149
Long Term Debt 102,677.00 69,395.00
Total Debt 102,677.00 69,544.00
Interest Expense 2,846.00 3,535.00
Interest Rate (Cost of Debt) 2.772% 5.083%
Table 4-3: Type of Debt- APN
4.4 Corporate Tax
As stated in their 2016 audited financial statements, it can be assumed that the
applicable corporate tax rate is 30%.14
13 Jeff Madura, Financial Markets and Institutions. Manson: South-Western Cengage Learning,
2009.
14 2016 Annual Report: APN Outdoor Group Limited -Page 52
11

4.5 Weight of Debt and Equity
To determine the Weights of Equity and Debt, we require the market value of Equity (E)
and the book value of Debt (D).
The market value of Equity is the current share price, P0, multiplied by the number of
shares outstanding. These data is available from Yahoo! Finance.15 In 2016, E was
$753,122,400
The book value of Debt (D) can be obtained from the Balance Sheet. In 2016, D was
$102,677,000.
Weight of Debt, Wd= D/D+E = 12%
Weight of Equity, We= E/D+E = 88%
4.6 Weighted Average Cost of Capital
WACC =Weight Debt * cost of debt *(1 – T) + Weight equity *cost of equity
Where T is the corporate tax
We calculate the cost of capital for APN Outdoor as 6.2%.
4.7 Discussion on Cost of Capital
The cost of capital is the minimum rate of return a firm expects to earn on its future
investments.16 Therefore, APN should invest in projects that will give a return greater
than 6.2%.
Analyzing the cost of capital provides valuable information to investors who want to
determine whether a firm is creating value for its shareholders. A firm’s optimal capital
structure is defined as the structure at which tax related benefits of leverage is offset by
15 Yahoo Finance. APN OUTDOORS LTD. 2017. https://au.finance.yahoo.com.
16 John Tucker, "How to set the hurdle rate for capital investments." 2009.
https://www.eprints.uwe.ac.uk/11334/1/Tucker_2009_QFinance_book_chapter.doc.
12

debt’s risk. At the optimal capital structure, WACC is minimized, the firm value is
maximized, and its share price is maximized.
13

CHAPTER 5: FINANCIAL STATEMENT ANALYSIS
5.1 Introduction
A company’s financial ratios provide investors with information on its profitability,
solvency, growth, liquidity and efficiency. Table 5-1 shows various ratios for APN
Outdoors over three years and Table 5-2 shows various ratios for oOh! Media Limited a
smaller rival company in the same industry.
Financial Ratios 2016 2015
Return on Equity 18.00% 16.55%
Return on Assets 10.73% 10.55%
Return on Capital 18.71% 14.17%
Debt to Equity Ratio 0.38 0.28
Current Ratio 1.90 1.90
Quick Ratio 1.89 1.89
Table 5-4: Financial Ratios- APN Outdoor Group
Financial Ratios 2016 2015
Return on Equity 7.39% 7.38%
Return on Assets 4.46% 4.56%
Return on Capital 6.18% 6.11%
Debt to Equity Ratio 0.37 0.41
Current Ratio 1.37 1.53
Quick Ratio 1.25 1.41
Table 5-5: Financial Ratios- oOH! Media Ltd
Source- Morningstar17
5.2 Performance Ratios
Performance ratios measure a company’s ability to use its capital or assets to generate
profits. They include return on assets, return on capital and return on equity.18
17 Morning Star, "oOh! Media Ltd." Morning Star. n.d.
http://financials.morningstar.com/ratios/r.html?t=OML&region=AUS&culture=en_US (accessed October
4, 2017).
18 K. R. Subramanya and John Wild. Financial Statement Analysis. New York: McGraw-Hill Irwin,
2009.
14

Return on Assets
ROA measures how effectively the company's assets are used to generate profits. A
higher ratio suggests a company that is properly managed with a good return on assets.
Return on Equity = Net Income+Interest Expense∗(1−Tax rate)
Average Total Assets
Return on Assets = Net Income After Tax/ Total Assets = 48,44619/451,37020 = 10.73%
Thus the 2016 ROA for APN Outdoor Group is 10.73%. Since the ratio is high and is
increasing each year then APN is doing well. Furthermore, when compared to oOH!
media of 4.46%, it indicates that the company is operating successfully.
Return on Equity- DuPont
This ratio measures the ability of a company's management to realize an
adequate return on the capital invested by the owners in a company. A higher
ratio suggests is preferred for this commonly analyzed ratio.
However, ROE alone doesn't say anything about a firm's capital structure. Hence,
analysts have decomposed the ROE ratio into three components which is the basis of
the DuPont Model.21
Return on Equity = Net Income
Sales x Sales
Total Assets x Total Assets
Shareholde r ' sEquity
=48,446/330,93822 *330,938/451,370 *451,370/269,19923
=0.146 * 0.733 * 1.677=0.18
19 2016 Annual Report: APN Outdoor Group Limited -Page 43
20 2016 Annual Report: APN Outdoor Group Limited -Page 44
21 Sam Ro, "Goldman Sachs explains the 'return on equity' formula that every CFA test taker must know." Business
Insider. April 17, 2015. http://www.businessinsider.com/cfa-dupont-roe-model-2015-4?r=UK&IR=T.
22 2016 Annual Report: APN Outdoor Group Limited -Page 45
23 2016 Annual Report: APN Outdoor Group Limited -Page 44
15

Thus the 2016 ROE for APN Outdoor Group is 18%. Since the ratio is high and is
increasing each year then APN is doing well. Furthermore, when compared to oOH!
media of 7.39%, it indicates that the company is utilizing capital successfully.
Return on Capital
Return on capital measures the return an investment generates to its contributors of
capital i.e. it indicates how effective a firm turns its capital into profits (Investing Answers
2017).
Return on Equity = Net Income−Dividends
Invested Capital
=(48,446-2915824)/(10267725)
=19,288/102677 =0.187
Thus the 2016 ROE for APN Outdoor Group is 18.7%. Since the ratio is high and is
increasing each year then APN is doing well. Furthermore, when compared to oOH!
media of 6.2%, it indicates that the company is turning invested capital into profits.
5.3 Other Ratios
Liquidity Ratios
These ratios determine the liquidity risk for the company i.e their ability to pay current
liabilities. They include current ratio and quick ratio (Subramanya and Wild 2009). In
2016, APN Outdoors had a current ratio of 1.9 and a quick ratio of 1.89. A ratio above 1
suggests greater assurance that APN’s current liabilities can be paid using its current
assets, thus the company does not have a liquidity risk problem
Solvency Ratios
24 2016 Annual Report: APN Outdoor Group Limited -Page 71
25 2016 Annual Report: APN Outdoor Group Limited -Page 44
16

Solvency Ratios determine if a company a company can meets its long term liabilities.
They include time interest earned and debt to equity ratio. In 2015 and 2016, the time
interest on APN Outdoors was 25 and 21 implying that they can meet interest payments
comfortably. Similarly, the debt to equity ratio has been low suggesting they have little
debt and thus low risk.
17

REFERENCES
APN Outdoor. "2016 Annual Report: APN Outdoor Group Limited ." APN Outdoor. February 22, 2017.
http://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_APO_2016.pdf.
APN Outdoors. 2017. https://www.apnoutdoors.com.au.
Bloomberg. " Australia Govt Bonds Generic Yield 10 Year." Bloomberg. 2017.
https://www.bloomberg.com/quote/GACGB10:IND (accessed October 2, 2017).
Brook, Stephen. "Failed oOh! merger leaves $3.4m sting in tail for APN Outdoor." The Australian. August
22, 2017. http://www.theaustralian.com.au/business/media/failed-ooh-merger-leaves-34m-
sting-in-tail-for-apn-outdoor/news-story/53d92d5019fd602c592aadb80a9d8eb8.
Investing Answers. "Return on Capital." Investing Answers. 2017.
http://www.investinganswers.com/financial-dictionary/ratio-analysis/return-capital-3054.
Investopedia. "The WACC is the weighted average after tax cost of debt and equity." Investopedia. 2017.
http://www.investopedia.com/terms/w/wacc.asp?adtest=video-idx-1.
Jacobson, Andrew. "Identifying the Marginal Investor." Andrew Jacobson Financial. May 3, 2017.
https://www.ajjacobson.us/finance-analysis/identifying-the-marginal-investor.html.
Johannesen, Alex. "Breaking Down APN Outdoor Group Limited’s (ASX:APO) Ownership Structure."
Simply Wall Street. August 15, 2017. https://simplywall.st/news/2017/08/15/breaking-down-
apn-outdoor-group-limiteds-asxapo-ownership-structure/.
Madura, Jeff. Financial Markets and Institutions. Manson: South-Western Cengage Learning, 2009.
Morgans. "APN Outdoor: Stuck in Transit." Morgans. 21 August, 2017.
https://my.morgans.com.au/research/8D63900F-96B6-454B-BB14-5DD2F2670856.pdf?
u=9b6e4620-b777-4faa-824c-18d547e2ca31.
Morning Star. "oOh! Media Ltd." Morning Star. n.d. http://financials.morningstar.com/ratios/r.html?
t=OML&region=AUS&culture=en_US (accessed October 4, 2017).
oOH! Media Ltd . About Us. 2017. https://www.oohmedia.com.au.
Quadrant Private Equity. "APN OUTDOOR." Quadrant Private Equity. 2017.
http://quadrantpe.com.au/Investments/Quadrant-Private-Equity-No-3/Portfolio/APN-
Outdoors.aspx.
Ro, Sam. "Goldman Sachs explains the 'return on equity' formula that every CFA test taker must know."
Business Insider. April 17, 2015. http://www.businessinsider.com/cfa-dupont-roe-model-2015-
4?r=UK&IR=T.
Subramanya, K, and John Wild. Financial Statement Analysis. New York: McGraw-Hill Irwin, 2009.
18

The Wall Street Journal. APN Outdoor Group Ltd. 2017.
http://quotes.wsj.com/AU/XASX/APO/financials/annual/balance-sheet.
Tucker, John. "How to set the hurdle rate for capital investments." 2009.
https://www.eprints.uwe.ac.uk/11334/1/Tucker_2009_QFinance_book_chapter.doc.
Yahoo Finance. APN OUTDOORS LTD. 2017. https://au.finance.yahoo.com.
19

APPENDIX A: Top 20 Security Holders
20

APPENDIX B: Weekly Returns- APO.AX and AORD
APO.AX AORD
Date Open Close Date Open Close
12/25/2016 5.75 5.91
12/25/201
6 5675.10 5719.10
12/18/2016 5.94 5.75
12/18/201
6 5589.70 5675.10
12/11/2016 5.31 6
12/11/201
6 5615.80 5589.70
12/4/2016 5.39 5.25 12/4/2016 5502.60 5615.80
11/27/2016 5.21 5.37
11/27/201
6 5570.50 5502.60
11/20/2016 5.22 5.16
11/20/201
6 5427.50 5570.50
11/13/2016 5.36 5.2
11/13/201
6 5446.60 5427.50
11/6/2016 4.7 5.26 11/6/2016 5263.10 5446.60
10/30/2016 4.67 4.64
10/30/201
6 5370.90 5263.10
10/23/2016 4.75 4.68
10/23/201
6 5513.90 5370.90
10/16/2016 4.8 4.75
10/16/201
6 5518.50 5513.90
10/9/2016 5.37 4.78 10/9/2016 5548.50 5518.50
10/2/2016 5.54 5.35 10/2/2016 5525.20 5548.50
9/25/2016 5.25 5.5 9/25/2016 5518.60 5525.20
9/18/2016 5.08 5.27 9/18/2016 5396.70 5518.60
9/11/2016 4.65 5.02 9/11/2016 5440.50 5396.70
9/4/2016 5.1 4.78 9/4/2016 5470.60 5440.50
6/19/2016 6.74 6.62 6/19/2016 5248.30 5192.80
6/12/2016 7 6.7 6/12/2016 5391.60 5248.30
4/24/2016 6.51 6.31 4/24/2016 5299.20 5316.00
4/17/2016 6.98 6.51 4/17/2016 5224.10 5299.20
4/10/2016 7 6.99 4/10/2016 5018.00 5224.10
4/3/2016 6.35 7.01 4/3/2016 5073.80 5018.00
3/27/2016 6.35 6.31 3/27/2016 5151.60 5073.80
3/20/2016 6.55 6.35 3/20/2016 5239.30 5151.60
3/13/2016 6.02 6.35 3/13/2016 5224.80 5239.30
3/6/2016 5.94 5.95 3/6/2016 5151.10 5224.80
2/28/2016 6.08 5.89 2/28/2016 4945.10 5151.10
2/21/2016 6.15 6.05 2/21/2016 5008.30 4945.10
2/14/2016 5.15 5.7 2/14/2016 4816.60 5008.30
21

2/7/2016 5.44 5.09 2/7/2016 5025.60 4816.60
1/31/2016 6.06 5.62 1/31/2016 5056.60 5025.60
1/24/2016 5.92 6 1/24/2016 4969.60 5056.60
1/17/2016 5.6 5.85 1/17/2016 4925.80 4969.60
1/10/2016 6.02 5.81 1/10/2016 5049.40 4948.50
1/3/2016 6.11 6.07 1/3/2016 5344.60 5049.40
12/27/2015 6.1 6.1
12/27/201
5 null null
22