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can you help me with this case study as soon as possible. CASE STUDIES 1N FINANCE rmsscsr; - SEMESTER 2, 2:117 CASE STUDY 2 CUMPANY

can you help me with this case study as soon as possible.

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CASE STUDIES 1N FINANCE rmsscsr; - SEMESTER 2, 2:117 CASE STUDY 2 CUMPANY FINANCIAL POLICY DECISION-MAKING Your current role is the Manager of the Finance Division of Fortescue Metals Group Limited, and you report directly to the Chief Financial Officer {CFO} of the company. The CPU has requested you to attend a strategic retreat being held by the company to present to the Senior Leadership Group, including the lChief Executive lfolcer {EEG} and the Board of Directors, on the current nancial policy platform of the company, the nature of the linkage or association between these policies adopted by the company, and how they integrate to inuence the operating and share performance outcomes for Fortescue Metals Group Limited. Fortescue Metals Group Limited {Flt-1G} is a leading iron ore production and exploration company which operates in the Pilhara region of northem Western Australia. The company is the fourthlargest listed resources company in Australia, behind BHP Billiton Limited, Rio Tinto Limited and Woodside Petroleum Limited, and the largest pureplay iron ore mining company listed in Australia. The company currently has two primary production sites in operation, namely the Chichester Hub located in the Chichester Ranges in the Pilbara region comprising the Cloudbrea}: and Christmas IEreek mining projects, and the Solomon Huh, which is located 121] kilometres west of the Chichester Hub and comprises the Firetail and Kings Valley mines. The company's current operational objective is to achieve iron ore production of at least 155 million tonnes per annum {Mtpa}, and ithas undertaken an aggressive expansion program in the last decade in pursuit of this objective. The iron ore produced by the company's mining operations is transported to their port facilities at Port Hedland and is shipped for spot market or futures contract trading in a number of overseas locations, but predominantly China. The follow table provides a summary of nancial and structural information for Fortescue Metals Group Limited for their recent June 313'\" year ends [All figures, except for per share, issued capital and percentage statistics, are expressed in A$h1illion31 m--ar- reform... Nuunsmedshmsrma 3.113.793 Market capitalisation 10.391023 share 1...... {$1 m m Mmgsmmmes: we Earnins .- .r... (a) nivimmmm mm mm Dividend payout ratio [1%) 13.10:] 13362 21.413 37.3719 35.21 1 Telegram... Iron ore processed [wet 53.911} 715.1111} 126.1111] 153.600 167.600 metric tonnes] Iron ore shipped {wet metric 311911} 165.400 159.400 tonnes) huncrepricerusrapermu -m 52.34 ms :23 mm: 12 325 9122 Earnings before interest and 2 563 .045 3: (132.334 4: 913. 259' l 365. 385 2: "1'02. 666 taxes (EBIT) Prot before tax 2, [I61 511] 1.436 65'IIr 4.153.923 546. 375 1 E23. 323 4\"\" abnorrnals \"\"42\" abnormals 3.19242 4% 9m mum u m was mm mm gamma 22mm mm 14 new: nswsa 9.504444 Long term right to Total 54.553 59. 3315 41.434 44. {133 34. 535 ----- liabilities 301:]. 399 394. 531 199 335 133. 4132 131111313 Further detailed overall sun'unary, structure, nancing and performance information can be obtained from the 21316 Annual Report document for Fortescue Metals Group Limited, which is available from the subject LMS site. Prior year arurual report documents and other lings and announcement information relating to the company can be obtained from the Forteseue Metals Group Limited website wwwfm l.eom.au or from the Dattnalysis Premium database available through the Databases link on the University Library website. Other relevant information relating to Fortescue Metals Group Limited or the wider corporate sector is as follows: *- Assume this analysis is being undertaken as at Monday Jill-'11 July 201?. i Fortescue Metals Group Limited's share price on Monday 10'\"I July 2131'? is $5.09 per share, and there are 1113.793 million issued ordinary shares on this date. I Fortescue Metals Group Limited is part of the Materials Sector based on the Global Industry Classication Standards (GIGS). and its GICS Industry is Metals and Mining. I Fortescue Metals Group Limited's beta eoefficient on July ll]:II 101'? is I189, compared to the beta eoefeient for the overall industry of 1.0-4. s a: 6 Qt}: F1N3CSF Case Study 2 Semz, zenlea respectively, on July 10'\" son. I The 1year London Interbank Offered Rates {LlBDR} on June 30m 21116 and July 10'\" 21]]? 1were 1.232% and 1.465%, respectively. I The SIASX 201] Accumulation Index, including dividend and anking credit components, has provided an average annual return of 8.668% over the mostrecent ve year calendar period to July 10''1 son. I The Auslralian dollar to US dollar {AUDIUSD} exchange rates on June 30" 2016 and July Ill"ll 201? were DITII'EZ and (136132., respectively. I Fortescue Metals Group Limited is subject to a corporate tax rate of 30%. Required: The CFO has requested you to submit two documents in preparation for the strategic retreat 1] a PowerPoint presentation that will be presented at the retreat and 2] a Background Analytical Report providing supporting calculation and analysis information. The presentation, prepared employing information from the annual report documentation and any other documentation or SDIII'CE of information considered to be relevant, is required to identifyr and outline the following aspects of Fortescue Metals Group Limited's current policy platform and operational activities and performance: I The nature of the f'n1n's working capital manage-Int policies. Focus should be on overall current asset inmt-Ilt and nancing policies, rather than the company's adoption of polici relating to specic current asset categories, such as inventories or receivablm. I The determination of the costs of the various SDIII'EH of costly or interest-bearing nancing I-ployed by the rm and, from this, the firm's overall weighted average cost of capital {WACC}. I The nature of the rm's capital structure determination policy, including identication of specic policy adoption or usage if relevant, whether the rm appears to have target or optimal capital structure ratios, and the determinants of the rm's capital structure choice. I The nature of the rm's earnings distribution policy, including the type of dividend policy employed if relevant, whether the firm has a target dividend policy or payout ratio, and the influence of taxation or other relevant elements associated with the rm's overall earnings management and distribution practices. I The nature of any association or relationship between these various corporate nancing polici employed by the rm, and how this may relate to Fortescue Metals Group Limited's share andl'or accounting performance outcomes, and any other key drivers of the rm's performance outcomm. These presentation documents should he submitted to the CFO by lpm on August 23'\" 2911, via the FINSCSF subject Lh'lS site. This case study will reprment 20% of the f'mal assessment for this subject. This ewe study can be submitted either individually or in a group with up to a maximum of four members. The maximum word limit, excluding any figures and calculations is the equivalent of 500 words per team member, so a case study completed by a team of 4 should be a maximum of 2,001] words. The PowerPoint presentation and background documents should he prepared in a profeioual manner, he informative and interpretable '1? an audience with reasonable genera] nance knowledge, and reect creativity and thought about the most appropriate way to present the information. The PowerPoint presentation should he a maximum of 15-21} slides. The Background Report should provide snpporng calculation and analytical information, including any assumptions made, to expand on the information and conclusions provided in the presentation

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