The Commonwealth Bank of Australia (CBA) recently announced a “cash net profit from continuing operations for the 2020 Financial Year of $7.3 billion”.

a) The Commonwealth Bank of Australia (CBA) recently announced a “cash net profit from continuing operations for the 2020 Financial Year of $7.3 billion”. What is Commonwealth’s dividend policy, and what was the total dividend paid to shareholders in 2019/20?

b) Fortescue Metals Group (FMG) reported a 49 percent increase in full-year net profit in FY2020. How much was this profit and what explained the increase in profit of 49%?

c) What was Mineral Resources Limited’s (MIN) EBITDA for the last financial year, ie, FY20, and what is meant by EBITDA?

Solutions

Expert Solution

A) What is Commonwealth’s dividend policy, and what was the total dividend paid to shareholders in 2019/20?

Commonwealth Bank of Australia will seek to,pay cash dividends at strong and sustainable levels;target a full-year payout ratio of 70% - 80%; and maximise the use of its franking account by paying fully franked dividends
total divided paid to shareholder = $2.98 per share

B) How much was this profit and what explained the increase in profit of 49%?

total Profit = $4735

Reason for 49% increase demand Record shipment Optimized product mix to deliver higher margin.

B) What was Mineral Resources Limited’s (MIN) EBITDA for the last financial year, ie, FY20, and what is meant by EBITDA?

AUD 555604862 - EBITDA

EBITDA : Earning Before Interest, Taxes,Depriciation and Ammortization

ekkarill92 answered 2 years ago

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