Analysis of companys cost of capital (maximum 550 words) (5+ 5 + 15 = 25...
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Finance
Analysis of companys cost of capital (maximum 550 words) (5+ 5 + 15 = 25 marks)
(1) What is the main benefit of debt financing? How does it affect the firms cost of capital? (2) How do the cost of debt, the cost of equity, and the weighted average cost of capital behave as the firms financial leverage increases from zero?
Discuss the importance of the knowledge of the cost of capital the selected company.
Calculate company cost of capital for, 2017, 2018, 2019, 2020 and 2021 financial years. Compare with the required rate of return and assess the actual performance.
Students are required select one of following 3 companies and download company annual reports 2017 to 2021 (five-year annual reports) No SX Code Company Name Market Return Rate (rm) 1 AMC.AX Amcor Plc 11.49 2 FCG.NZ Fonterra co-op Limited 11.49 3 BLS.AX BlueScope Steel 11.49 Students are required select one of following 3 companies and download company annual reports 2017 to 2021 (five-year annual reports) No SX Code Company Name Market Return Rate (rm) 1 AMC.AX Amcor Plc 11.49 2 FCG.NZ Fonterra co-op Limited 11.49 3 BLS.AX BlueScope Steel 11.49
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