Question
You are hired as an external consultant to carry out the following analyses and produce a report. Refer to the below table to look up
You are hired as an external consultant to carry out the following analyses and produce a report. Refer to the below table to look up your assigned company Lendlease Group (LLC) (Real Estate) Your task is to review the company capital structure decisions before and during the COVID-19 pandemic. You may assume that the impact of the pandemic began in March, 2020. You are required to identify three peer companies for comparison analysis. The peer companies may be chosen using the Peer Firms worksheet in companies.xlsx. 1. Compare the capital structure trends of your assigned company and the three peer companies in the fiscal years ending in 2015 through 2019. Discuss these trends using the capital structure theories under the topics covered in weeks 8 and 9. (8 marks) 2. Identify the capital structure decisions of your assigned company in response to COVID 19 (since March 2020). Check their annual reports, press release or ASX filings for any decisions related to debt issuance, debt repayment, equity issuance or share repurchases. For example, see ASX or Datanalysis - Company financial data. What are the impacts of these decisions on capital structure? What do you think are the reasons for these decisions? (7 marks) 3. Calculate the annual cost of capital of the assigned company fiscal year ending in 2015 through 2021. How did the capital structure decisions (discussed in Question 2) affect any changes in the cost of capital over the period? Given the current state of corporate financing, what are your suggestions to optimise the assigned companys cost of capital? (7 marks)
My company name is Lendlease Group (LLC) Real Estate
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