FNSINCE?i -Apply economic principles towork in the financial servic? industry types of graphs. charts, diagrams and tables used in your statistical modelling and reporting and why you used them . RPS". Showed evidence that you have analysed documentation from a variety of sources and consolidated that information to assist in justifying your recommendations. RPli]. Applied asset and debt pricing models and explained the theories behind the models to show how they have influenced your decision. You should include valuing debt. valuing equity and leverage ratio. You should also calculate WACC before and after your recommendation. and the leverage ratio before and after. To calculate the WACC. use the value of interest bearing finance as the debt level rand assume that the ?nance expenses are the interest being paid on these loans. dividends paid are the cost ofequity. Lastly you can assume that the value of shareholder equity is the value of con'o'ibuted equity for ordinary shareholders For the leverage ratior you can use the book value of total liabilities less cash as a proxy for market value of debt. RP11. Demonstrated that you have used realistic rates of return for debt and equity based on an analysis of the company data provided, for example the current cost of debt and equity. and a prediction of the future costs of both based on the increased risk after the financing decision is made and the type of debt used if any. the share price movements over time and a comparison with current ASK market returns as evidenced by data collected over a period of time [for example RBA, ABS and AS]: data for debt and equity returns}. RP12. The company have also asked you to assess the likelihood that the new initiative will generate them the $5.DDO.EIDD in income that they have estimated based on a significance level of 0.05. They have acquired data for the last 5 years from the existing manufacturing business that shows on average the net revenue has been $4,950,000 with a standard deviation of 15%. You should use hypothesis testing with a one tailed test and an appropriate to test value. Determine if the hypothesis is correct or not and explain your ?ndings in line with the company requirements in your report. RP13. Determine if there is any correlation between the company share price and the AS)! All Ordinaries (using the Product Moment Correlation l(So-Efficientr and x" as Ethical Trading Group share prices and "y" as the ASX All Ordinaries values} and provide your opinion as to w hether there is any strong correlation that could be used to help predict movements in the value of the company. ShowI your calculations and check and validate them. As part of the validation. explain why you have only used a sample of the ASX rather than the entire population. and explain why you believe the sample is or is not a valid representation of the population. Validation should also include an explanation of the method you

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