Financial analysis of the Sun Crop Bank

Table of Contents

Introduction. 3

1. Description of Sun Crop Bank. 3
2. Governance and Ownership structure. 4
3. Performance ratio analysis of Sun Crop Bank. 4
4. The share price graph and calculation for the movement of the share price. 7

4.1 Graph reflecting the share price movement of the Suncorp Group Limited. 7

4.2 The comparison between the Share price movement of Suncorp Bank and share price movement of all ordinary stock exchange. 8

5. Announcements. 9
6. Research via internet 9

6.1      Beta calculation. 9

6.2 Computation of required rate of return by using CAPM method. 11

6.3 Determining the investment method (Conservative investment) 12

7. Computation of the weighted average cost of capital 12

7.1      Computed Cost of Capital through Capital Assets Pricing model 12

7.2 Implications that a higher WACC on investment decision. 13

8. Debt ratio consideration of Suncorp Bank. 13

8.1 Stable Debt to equity ratio of company. 13

8.2 Gearing ratio discussion. 14

9. Divided policies of company. 14
10. Letter of recommendation. 15
11. Conclusion. 17
12. References. 18
13. Appendix. 19

 

Introduction

There are several financial tools which have been used by the organizations to analysis the business functioning and evaluating the financial performance of organization. There are several financial tools such as capital budgeting, ratio analysis share and weighted average cost of capital. In this report, Sun Crop Bank has been taken into consideration and financial analysis has been made to evaluate the financial performance of company since last two years.

1.      Description of Sun Crop Bank

Sun Crop Bank is an Australian finance, insurance and indulged in proving the banking and financial services to clients on domestic and international level.  The stock price of the company is currently traded at AUD $ 14.06 +0.17 (+1.22%).  The main headquarter of the company is Brisbane Australia. It has several subsidiaries companies indulged in providing the finance services.

(I.C. RS 8375)

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