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Using the annual report of Meridian Energy Limited (MEL) for 2017 & 2016, answer the following questions. Company annual reports can be obtained from the

Using the annual report of Meridian Energy Limited (MEL) for 2017 & 2016, answer the following questions. Company annual reports can be obtained from the library website: Go to: https://companyresearch-nzx-com.ezproxy.aut.ac.nz/deep_ar/newpage.php?default=MEL 1. Using the consolidated financial statements of Meridian Energy Limited (MEL) for the years 2017 and 2016, prepare common-size balance sheets and income statements. (5 marks) 2. Discuss THREE significant matters that have impacted the financial performance of MEL, in the last financial year. (6 marks) 3. Evaluate MELs sales, gross margin, operating profit, net profit margin, asset, debt, equity structure and explain trends and changes over the years 2016 and 2017. (6 marks) 4. Discuss the role of MELs governance in creating value for Meridian. (5 marks) 5. Using the following financial ratios for 2016 and 2017 periods, and other associated information available in the public domain, assess the financial health of MEL from the view of an investor. a) Liquidity ratios b) Asset management efficiency ratios c) Profitability ratios d) Market ratios (10 marks) 6. Assume you are a banker evaluating a loan request from Meridian Energy Limited (MEL) for $220 million. Considering MELs recent earnings announcements and earnings forecast updates, what would be your concerns in deciding on approval or denial of the loan request? Use the companys capital structure ratios for 2016 and 2017 in your explanation. (8 marks)

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