Critically analyse other key financial ratios for apn

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Required:APN Outdoor Group (APO) is an ASX Listed firm which specialises in offering advertising services including digital billboards, static roadside billboards, transit advertising, rail advertising and airport advertising throughout Australia and New Zealand (Reuters, 2017). In 2016, the firm's sales exceeded AUD$300 million. Being part of the finance team of APN Outdoor Group, you have been tasked with reviewing and preparing a report on the capital structure of the firm and critique whether the firm has been successful in maximising wealth generation for shareholders. An excelloent source for information specifically on the APN Outdoor Group is the analysis provided by the Wall Street Journal.

Your report should be 1000 words and cover the following areas: Assume that for the 2016 year the firm APO.AU has a Beta of 1.3, that return on the ASX market was 7%, and that the yield on Australian Government bonds was 2.4%.

Using data from the firm's 2016 annual report:Categorise the firm's current capital structure into debt and equity.

Calculate the firm's after-tax Weighted Average Cost of Capital.

Compare the firm's capital structure with at least one other firm operating within their industry.

Critically analyse other key financial ratios for APN.

Outline any significant changes to have occurred to the firm's capital structure during the past three years.

Critically evaluate the extent to which the firm has been successful in maximising wealth for shareholders in the past three years.

Discuss why it is important for the firm to minimise their cost of capital.

Recommend possible ways in which the firm could adopt an alternative capital structure and lower their cost of capital.

Reference no: EM131658435

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