Corporate Finance
Table of contents
Question 1: Evaluation of the corporate governance structure of the firm 3
Question 2: Risk and return analysis 4
Question 3: Cash flows of the company 5
Question 4: Financing 7
Question 5: Dividend policy 8
Reference list 9
Appendices 10
Appendix 1: Dividend and earnings 10
Appendix 2: Profitability 11
Appendix 3: Capital structure 12
Appendix 4: Risk analysis 14
Question 1: Evaluation of the corporate governance structure of the firm
Adair is an Australian company that deals with the home furnishing items. The main power or potential of the company is that is one of the leading companies in retail home furnishing equipment. The CEO of the company is Mr. David Mc lean. The main power of the company is that it has many share holders who come to subscribe to its shares (Chan et al. 2014, p.59). The company’s head quarters are in Grover Beach belong to the Mc Lean family who had begun their business in the year 1918. In the year 1980, the Mc Lean family had sold a part of its shares. The business of the company is operated by the board of the directors who are the people involved in managing the corporate governance. The main aim of the CEO along with the chairman is to maximize the growth of the business by ensuring that the company faces a growth in its capital and other returns. Not only financial growth the company aims to satisfy the customers by providing quality goods and services. The directors and the CEO are entitled to receive a proper remuneration.
Corporate governance principles
As stated by Benson et al. (2014, p.335), there are certain corporate governance principles that are followed by the owners and the managers.
(I.C. DS 113)