Introduction to finance ( About 500 words)
Go on-line to http://www.reuters.com/finance/stocks/ and type in the code for your company into the Search Stocks field and click on the magnifying glass button.
What is their calculated beta for your company?
If the risk free rate is 4% and the market Risk Premium is 6%, use the Capital Asset Pricing Model to calculate the required rate of return for the companies’ shares.
Is the company you and your partner have chosen a “conservative” investment? Explain your answer.
Consider the gearing ratios for your company over the past two years:
Does it appear to be working towards the maintenance of a preferred optimal capital structure? (i.e., does it appear to be “stable”?) Explain your answer.
Based on your analysis above, write a letter of recommendation to your client, providing an explanation as why you would like to include this company in their investment portfolio. Please refer to the ratio results calculated earlier and any other trends or factors that you believe to be important.
COMPANY IS ANZ bank and Common wealth bank .
APA style referencing
( we can find the name of this bank in this website and we have to answer the question according to their annual report) www.asx.com.au].
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