04 May HOW MANY SHAREHOLDERS DOES THE COMPANY HAVE?
Please select one of the following three companies as the company you will study
• Graincorp Limited (GNC)
• Ruralco Holdings Limited (RHL)
• Select Harvests Limited (SHV)
Take the current share price to be the price at the close of trading on Friday 21st September 2012.
1. Describe what the company’s main businesses are. [This must be done in your own words, not by copying something from the company’s web-site or annual report].
2. Answer the following:
a. Who is the chairman of the company, and what is his/her background?
b. Who is the Chief Executive Officer of the company, and what is his/her background?
c. How many shareholders does the company have?
3. Calculate the following, based on the current share price (i.e. as at 21st September 2012):
a. Market capitalisation.
b. PE multiple (based on full-year earnings for the latest full-year results reported)
c. Dividend yield (based on the dividend for the latest full-year earnings reported).
d. The Bid-Ask spread [This can be done on any day between Friday 21st September and Friday 28th September 2012. In your answer, state what the Bid and Ask prices were.]
e. Enterprise value (EV).
f. EV/EBIT multiple based on the latest set of full-year results.
g. EV/EBITDA multiple based on the latest set of full-year results.
h. The P/NTA multiple based on the latest set of full-year results.
4. Calculate:
a. Days inventory
b. Days accounts receivable
c. Days accounts payable
d. Operating cycle
e. Cash cycle
for at least the last five (5) years for Ruralco and ten (10) years for the other two companies.
Compare your results to the other two companies and draw suitable graphs to compare them. Comment on your results, and in particular on any similarities or differences.
Note, irrespective of which company you choose to do this assignment on, for Question 4 you need to do calculations for Ruralco for at least five years and for Graincorp and Select Harvests for at least ten years.
5. Calculate the Weighted Average Cost of Capital (WACC) for the company, assuming a pre-tax cost of debt of 7.0%.
6. Estimate the value of one share in the company, using the Gordon Dividend Growth Model.
7. Suppose you are an equities analyst working for a stockbroking firm. Would you recommend that your firm’s clients invest in the company? Why or why not?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.