Question
Based on the below analysis from question 4 to 8, please provide recommendations and analysis of the firm with details of where to focus? I
Based on the below analysis from question 4 to 8, please provide recommendations and analysis of the firm with details of where to focus? I need an answers from questions 9-11.
Thank you and Appreciate your detailed analysis!!
You can find more data, graphs and details from the drive link here
https://drive.google.com/drive/folders/1dgBJqtCHC4I-c_NPBn_wSBOji7kCcDAn?usp=sharing
Assignment requirements:
1. Download all available financial data for Rio Tinto Ltd (ASX Code: RIO) from DataAnalysis Premium (Murdoch library's databases).
2. Give a brief description of RIO.
3. Explain the purpose of financial statement analysis.
4. Analyse the firm's current operation using its financial statements (i.e. income statement, balance sheet, and cash-flow statement). You should also take into account supply and demand factors (i.e. you need to look at the market conditions at both industry and economy levels).
5. Download the S&P/ASX 200 from Yahoo Finance website and calculate the rate of return for S&P/ASX 200.
6. Using the Capital Asset Pricing Model and an appropriate government bond yield as risk-free interest rate and the result from (5) to calculate the required rate of return for RIO.
7. Use an appropriate dividend valuation model to value RIO's shares (Hint: use the total dividend figures).
8. Draw graphs for RIO's adjusted share price and return (you can use daily, monthly or quarterly return). Compare the company's share price and return with your analyses in questions (6) and (7) above.
9. Use the information and results from your analyses in questions 4-8 above; identify areas of cash flows (i.e. operating, investing and financing) where the firm needs to pay attention to.
10. Suggest relevant investment and financing strategies to improve the firm's cash flow position.
11. Justify your recommendation in terms of shareholders' wealth maximisation.
Note: You should use data for the period 2010-2020 in your analysis
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