Finance and Quantitative Methods - Accounting Assignment

Internal Code - MAS4208

Accounting Assignment

Questions : A. Calculate and comment on the cost of capital of Aveo for the year ended 30th June 2016 (show your workings) B. Analyse and comment on the capital structure of Aveo in the past 5 years. Is it optimal? Why or why not? Evaluate the impact of capital structure on Aveo’s financial risk profile. C. Provide and comment on Aveo’s dividend history in the past 5 years, and provide a critical evaluation of Aveo’s dividend history. Do you agree with the company’s dividend policy and dividend level? If not, recommend your preferred policy and a dividend level. Explain fully your conclusions and reasoning. D. Considering all of the above, draw a conclusion on the attractiveness of Aveo Australia Ltd as an investment proposition. Include in your analysis a discussion of: I. the weaknesses of your analysis, II. any key risks that may affect the attractiveness of the company as an investment, and III. how you have factored these risks into your attractiveness analysis and valuation.