You are required to present a consultant’s report containing your responses to the questions listed below in reference to the same Australian listed public company you have chosen in Part A of Assessment 2, focusing on the company’s financial strategies that create shareholder value. Use the general purpose financial statements in the annual report you submitted in PART A for your analysis. It is necessary you carry out additional secondary research to collect data (or proxy data) from different sources to help you answer the questions.
The purpose of these questions is to require you to demonstrate your ability to conduct research into real companies, their operations and events affecting those companies. You should demonstrate your ability to interpret data, summarise your findings and to communicate your views in a report. The emphasis is on explaining the financial management of the company, as revealed in the accounting reports, and also to place those reports within the wider economic context.
1. What are the short-term and long-term debts used by your firm
2. Is your company’s debt structure consistent with the industry
3. How does the industry your company operates in influence the proportion of short-term to long-term debts of your company
4. What is your company’s the cost of debt
1. What is your company’s cost of equity
2. Evaluate and discuss your company’s revenue, earnings, EPS, dividends and growth expectations. Use the most recent reported earnings results from the annual report you submitted in PART A for your analysis.