Assignment title: Information


Task A). Pacific Energy Limited (ASX: PEA) is an ASX-listed energy supply business. The businesses deliver low-cost 'off-grid' power supply to the Australian resource sector and 'grid-connected' renewable hydro power. PEA owns and operates 22 power stations with a total power generation capacity approaching 237MW. These power stations utilise either gas, diesel, dual fuel or water to generate electricity for our long-term customers. The Company's core business division Kalgoorlie Power Systems (KPS) has been delivering its resource sector clients, including some of the world's biggest mining companies, 'off-grid' power supply solutions for in excess of 25 years. i) Being part of the treasury team of Pacific Energy Limited, your first exercise is to categorize Pacific Energy's capital structure into debt and equity capital. Begin by going to the website http://www.asx.com.au/asx/research/company.do#!/PEA to obtain Pacific Energy Limited's 2015 Annual Report. ii) Calculate after-tax Weighted Average Cost of Capital. iii) Assuming Pacific Energy Limited's credit rating is AAA, what alternative capital structure would you recommend lowering the cost of capital to the company? Show all your calculation and limit your report to 1,000 words. (30%) Guidelines:  You are to calculate cost of debt and cost of equity to work out Weighted Average Cost of Capital.  To lower the cost of capital of the company, you could suggest an alternative debt and equity capital mix taking into account the company is AAA rated. B) Financial management provides a framework for pursuing synergy between the functional responsibilities and financial resources of the business organisation. Contemporary organisations integrate strategic decision models capable of maximizing wealth generation. By reading an annual report of any one listed company, write any essay how you think the organisation is working towards this goal of maximizing wealth. Limit your essay between 1,000 to 1,500 words. (10%). Rationale This will provide an opportunity to apply the concepts in an authentic scenario that you may encounter in the workplace and also:  be able to evaluate and explain the congruence of accounting, finance and treasury functions;  be able to explain and critique the objectives of financial management in contemporary organisations;