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As a financial analyst you have been asked to analyse an ASX listed company. The company...

As a financial analyst you have been asked to analyse an ASX listed company. The company is one of your choosing. Your task is to make a recommendation as to whether this company is an attractive investment opportunity. Before you draw a conclusion, you are required to: 1) Discuss how successful the company has been at maximizing stakeholders value over a set analysis period. This period may be 12 months, 2 years, or 5 years. 2) Analyse the company's share price history and traded volumes over the chosen analysis period. 3) Calculate the return for investing in the company both short term and long term and identify the main causes of its volatility in return over the corresponding holding period. The discussion of volatility should consider economic-wide and firm-specific factors. 4) Apply the valuation technique(s) taught in this course and undertake a current valuation of the equity for your company. Based on your calculation, would you recommend a prospective investor to buy, hold or sell this security and why? 5) Analyse the company's dividend policy. Should the company follow a progressive dividend policy? Critically evaluate factors that are affecting corporate dividend policy and how your company's dividend policy may have influenced its capital structure and share price. 6) Analyse the company's capital structure. How would you describe the current capital structure for your company and justify with reasons that should potential investors view this company as a favourable investment choice? Based on the attempt to all of above questions conclude whether your company is an attractive investment opportunity. You should clearly explain your assumptions used in the valuations and estimations and critical discuss the limitations of your analysis and any other risks that may affect investors' decision making.

I want a anlaysis on ZIP PAY

Solutions

Expert Solution

Zip Pay Companies 12 month Period between Sep 2019 - Sep 2020 have been taken.

Zip in 01-09-2019 Shares were Trading at 3.44 and On Sep -1 -2020 closing price was 6.44

Net Return for the Sharehoders is (Selling price in Sept - Buying Price In Sept 2019 )/(Buying Price ) = (3.44-6.44)/3.44 *100 = 3/3.44*100 = 87.9 % , Stocks were giving a good Return of 88% in 1 year time period.

Shares trading Volume have a lowest of 54milion in Nov 2019 and a highest trade volume of 305 Million in Jun 2020.

Had been invested $1000 in this company it would have made a profit of $ 870 during this 12 month period.

jeff jeffy answered 1 year ago
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