Managing Finance Assignment
Learning Outcomes -
- Analyse capital structure and costs of capital.
- Analyse working capital and payout policies.
- Apply principles of finance theory in business management.
Company name is COCA-COLA AMATIL Ltd.
Answer Question 1 and Question 2 below using the company you selected for Question 1 in Assignment 1.
Question 1 - Capital Structure
Calculate the following measures for three years:
1. Capital structure (i.e., the percentage of debt and percentage of equity)
2. Cost of common equity and (if any) preferred equity
3. Sources of debt (i.e., bank loans and/or bonds)
4. Before-tax and after-tax cost of debt
5. Weighted average cost of capital
Please read two case studies provided in Module 5 to assist you in answering Question 1.
Question 2 - Dividend Policy
Provide answers to the following:
1. Report the dividend payments over the last three years.
2. Calculate the dividend payout and dividend yield.
3. Identify a dividend payout policy that the company follows.
4. Comment whether the dividend payment of the company is providing a signal to the market.
5. Evaluate the dividend policy of this company in terms of the industry practice.