BAFN200: Principles of Finance : Understanding Money - Accounting Assignment

Internal Code - MAS1248

Accounting Assignment

Report Writing - Write a report to answer the following questions relating to their allocated company:

(i) Describe briefly the company’s capital structure. Discuss whether in your view this capital structure is optimal. Articulate and defend a target capital structure for the company.

(ii) Identify and explain the main sources of equity and debt finance over the past 10 years. How did capital raising decisions impact on the firm’s capital structure and risk profile?

(iii) Determine the cost of capital for each of the sources of capital and the weighted average cost of capital for the firm. Explain the importance and implications of the cost of capital for the business.

(iv) Source/estimate the beta. As a potential investor, how would you use this beta?

(v) Comment on the relative strengths and weaknesses of your analysis noting what your analysis has achieved and its limitations.