Briefly describe how you would calculate Aurubis’ weighted average cost of capital (WACC).

Analysis of the financial situation of the Aurubis Group

max 2800 words

This assignment requires an analysis of the financial situation of the Aurubis Group, one of the leading copper producers worldwide. The parent company is Aurubis AG, based in Hamburg, Germany. Company information is available from https://www.aurubis.com/en/download-center/all. For the purpose of this assignment, treat the entire group as if it were a single entity.

Provide a brief characterisation of the company.Put more emphasis on the financial situation (such as components of cash flows and the stock price) relative to other aspects (such as strategy or marketing),but do not ignore the latter.

Describe how the capital structure of the firm developed over time. What were the likely drivers of past capital structure changes? Could you identify a target capital structure and, if so, how?Check whether any of the main capital structure theories appear to apply to this firm. Justify your answer. Your analysis should cover the last ten years for which data is available.

What capital structure would you advise the firm to aim for, given its current situation? Should the firm adjust its current dividend policy?Justify your answer.

Calculate the cost of equity of Aurubis Group.Describe in detail what calculations you perform,what inputs you use and justify any assumptions you have to make.

Calculate the cost of debt of Aurubis Group.Describe in detail what calculations you perform,what inputs you use and justify any assumptions you have to make.

Briefly describe how you would calculate Aurubis’ weighted average cost of capital (WACC). No actual WACC calculation is required.

You may use information from any publicly available source.Make sure that all the sources used are being properly referenced.

Determine the overall financial strength of the company based on the ratios identified as either strengths or weaknesses.

Financial Ratio Analysis

Interpret whether the trend for each ratio is an improvement or a decline in performance for the company.

Create a table that lists each ratio as either a strength or a weakness in the most current year, based on its trend and your interpretation.

Determine the overall financial strength of the company based on the ratios identified as either strengths or weaknesses.

Consider all of the ratios discussed so far. Is the company’s strength the fact that the debt management ratios are improving? Or is it that the liquidity ratios are increasing? Is the company’s weakness that the turnover ratios are declining? Or is the company’s weakness that debt management ratios are weakening?

Categorize the company’s overall ratio performance as either strong, neutral, or weak, based on your determination from the ratios.

Explain factors that affect the price,yield or duration of fixed income securities.

Security analysis and portfolio management

Answer all questions in this section

Using the resources available in your domestic investment environment select any 4 bonds issued by Government and corporations relevant to you.

Determine the current yield and yield-to-maturity for each bond.

Evaluate the investment implications of yield curves.

Explain factors that affect the price,yield or duration of fixed income securities.

 

Outline the recommendations and how they might assist those customers in gaining a positive outcome from using asset finance.

Legal and Regulatory Requirements of Asset Finance

Your coursework should be between 2,000 and 2,500 words.

You should ensure that any quotes used conform to our exact referencing format. If references are used, a reference list must be provided at the end.See the Course Site for guidance on referencing and creating a reference list.

The word count includes any: footnotes, endnotes, glossaries, diagrams, figures or tables. The word count does not include the title page, or appendices. Appendices should be used occasionally, with the intention of providing further detail about points made in the main body of the coursework. They will not be taken into account where they are used to include detail that should have been in the main body of the coursework.

Assignment

Answer all questions from both sections.

Section A

Case study scenario:

With several years’ experience as a new business administrator at a small independent asset finance company, you were successful in applying for a new position as pay-out supervisor at a bank-owned asset finance company.

Your main responsibility in your new role is to carry out final checks on documentation for all larger transactions (where the net advance exceeds £250,000) prior to them being authorised for pay-out.

One of the first cases presented to you relates to a hire purchase agreement with a long-established customer of the bank and all documentation has been completed ready for pay-out. However, in the file are a number of copy emails between the customer and your Sales Manager. In one of the emails, the customer asks the Sales Manager what the implicit interest rate is in the agreement and the response is that it is 6%. You check the calculations and find that the correct rate is 6.75%.

Required:

With reference to the above scenario,answer the question below:

1. Explain what action you would take following your discovery of the interest rate discrepancy and analyse how ethics, business culture and personal morality would influence how someone in your position might respond in this scenario.

Section B

Required:

Answer both questions below:

2. The Finance and Leasing Association’s Business Finance Code contains recommendations to customers taking out business finance agreements. Outline the recommendations and how they might assist those customers in gaining a positive outcome from using asset finance.

3. In relation to fair treatment of customers (FTC), outline the outcomes that the Financial Conduct Authority expects FTC to achieve for consumers and how it expects asset finance companies to apply FTC.

 

 

Describe how it addresses the sales results,and then outline the issues this company faces regarding sales projections.

Before developing a pro forma income statement, one must first prepare a sales projection. Explain why this first step is so critical based on your reading. Then, review the quarterly report for Deere & Company you downloaded for the Week 1 Analyzing the Statement of Cash Flows discussion.

Describe how it addresses the sales results,and then outline the issues this company faces regarding sales projections.

Guided Response: Review the posts from your classmates and respond to at least two.Compare and contrast the points you and your classmates made regarding the importance of preparing a sales projection in the process of financial forecasting.

Each response should have a minimum of 100 words.

Would you,as the loan officer, grant the loan request?You need to specify the reasons and explain in detail.

Anandam Case Study-Finance

Write a final decision report to the company regarding the request.Your report must contain answer to the questions below.

1. Would you,as the loan officer, grant the loan request?You need to specify the reasons and explain in detail. Calculate necessary ratios to support your decision. (50 points)

2. What areas of improvement can you suggest for the future?be detail. (40 points)

APA format required. (10 points)

Explain the incentive pay model Uber uses and how it affects the principal agent problem.

Unit 8 Final Project Finance

Uber is a ride-sharing service started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com.
Construct an eight-page analysis of Uber using the following criteria.

Analyze the market before Uber’s entry. Describe the inefficiency Uber exploited.

Explain Uber’s surge pricing in the context of shifts in supply and demand.

Evaluate Uber’s surge pricing in the context of price discrimination.

Apply the concepts of economies of scale and economies of scope to Uber’s business model.

Apply the concepts of game theory to Uber’s market.

Assess Uber’s potential for international expansion and potential trade policy issues.

Explain the incentive pay model Uber uses and how it affects the principal agent problem.

Discuss any asymmetric information issues with Uber’s business model.

Your essay must be at least eight pages in length (not counting the title and references pages) and include at least five peer-reviewed resources. Adhere to APA Style when writing your analysis, including citations and references for sources used. Be sure to include an introduction.Note that no abstract is needed.