Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you are a financial analyst and you are asked to analyse AGL Energy Limited (AGL). Links can be used for AGL: https://www.asx.com.au/asx/share-price-research/company/AGL https://www.agl.com.au/about-agl/investors https://www.wsj.com/market-data/quotes/AU/XASX/AGL/financials
Suppose you are a financial analyst and you are asked to analyse AGL Energy Limited (AGL). Links can be used for AGL: https://www.asx.com.au/asx/share-price-research/company/AGL https://www.agl.com.au/about-agl/investors https://www.wsj.com/market-data/quotes/AU/XASX/AGL/financials 1) How successful AGL Energy Limited (AGL) has been at maximizing stakeholders value over the 12 months or 5 years? 2) Analyse the AGL's share price history and traded volumes over the 12 months or 5 years. 3) Calculate the return for investing in AGL both short term and long term and identify the main causes of its volatility in return over the corresponding holding period. 4) Apply the valuation technique(s) and undertake a current valuation of the equity for AGL. Based on your calculation, would you recommend a prospective investor to buy, hold or sell this security and why? 5) Analyse the AGL's dividend policy. Should AGL follow a progressive dividend policy? Critically evaluate factors that are affecting corporate dividend policy and how the AGL's dividend policy may have influenced its capital structure and share price. 6) Analyse the AGL's capital structure. How would you describe the current capital structure of the company and justify with reasons that should potential investors view this company as a favourable investment choice? 7) Based on the attempt to all of above questions conclude whether AGL Energy Limited is an attractive investment opportunity. You should clearly explain all of your assumptions used in the valuations and estimations and critical discuss the limitations of your analysis and any other risks that may affect investors' decision making
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