Using publicly available data:
1. Analyse the share price history of FMG over the last 5 years, identifying the main causes of its volatility in share price and traded volumes. Include in your discussion an analysis of the relationship between the iron ore price and FMG’s share price using an appropriate range of statistical analysis tools.
2. Analyse FMG’s historic cost of debt against a benchmark, “risk free” rate and derive a 95% confidence interval estimate for its average risk premium on debt.
State all assumptions you make in answering the above.
Please note: Turnitin does not accept spreadsheet submissions. If you use spreadsheets in your analysis, key outputs from the spreadsheet should be pasted into the Word document submitted. Where spreadsheets have been used in your analysis, you should email copies of the live spreadsheets to the LIC with the same deadline as the other documents.