Question
Choose a company from the list provided below. In groups of 3, describe the nature of the business of the selected company including the products
Choose a company from the list provided below. In groups of 3, describe the nature of the business of the selected company including the products and services, industry, competitors and customers. Identify and discuss the sources of equity and debt financing utilised by the company (both long-term and short-term financing). Evaluate the capital structure of the company (using appropriate ratios, for example, debt to equity ratio) and compare it with other firms in the industry. Calculate the cost of equity capital, cost of debt capital and the weighted average cost of capital (WACC) for the chosen company. Discuss the implications of the cost of equity capital, cost of debt capital and weighted average cost of capital of the firm on its managers and shareholders. Based on the chosen companys current products or services, propose a new product or service/investment that they can offer their customers. For the proposed product or service/investment:
- predict the cash inflows and cash outflows for first 5 years;
- calculate the net present value (NPV), internal rate of return (IRR), and annual rate of return (ARR);
- evaluate and write a recommendation for the proposed product/investment;
- provide the predicted cash flow data as an appendix to the report.
You will present your findings in the form of a report and a presentation to the class. The report should have the following at minimum:
- Title page.
- Abstract / Executive Summary.
- Table of Contents.
- Introduction.
- Body.
- Conclusion & Recommendation.
- Appendices.
- List of References.
Other information about this assessment, including due date and time, length, submission method and format and other requirements are provided in the course outline. Please refer to the course outline for these details.
List of Companies:
You can choose a company from the top 500 ASX-listed companies. You will be able to find the list of the top 500 ASX listed companies by following this link. Common wealth bank is on of the company that is listed.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started