An Analysis Report of Independent News and Media Company
Contents
INTRODUCTION 3
COMPANY SHARE PRICE 4
CAPITAL STRUCTURE 6 Equity as at the end of 2008 financial year 6 Cost of Equity 7 Debts as at the end of 2008 financial year 7 Cost of Debt 7 Equity as per the interim result in August 2009: 8 Debt as per the interim result in August 2009: 8
INM DIVIDEND POLICY 9
FUTURE DIRECTION 12
Conclusion 13
Bibliography 14
Appendixes 15
EXECUTIVE SUMMARY
Today, businesses are severely affected by the downturn in the economic activities and situation. The fact that nowadays most organisations find it so difficult to continuously achieve a sustainable growth due to scarcity of credit facilities, the credit crunch scandal which led to the global recession has made many corporate organisations to really struggle with repayments of their debts and also made it very hard for them to have a required working capital to finance their operations, in which Independent News and Media is not an exception.
This project, however, analysed and tracked changes that had occurred in the last 12 months in Independent News and Media. Areas analysed include: company share price, capital structure, dividend policy, and future direction of the company. Facts and figures are given to highlight these changes using both absolute and relative figures.
The project also examined various restructuring programmes embarked upon by the organisation to deal with tremendous decrease in its share price, changes in financial structure and dividend policy.
INTRODUCTION
Independence Newspaper was the bases of the independence news and media; it was founded by William Martin Murphy in Dublin in 1904. The company started with the production of morning news paper, later grown into the evening and Sunday’s production. In 1960, Sir Anthony O’Reilly bought a large amount of share in the company and became the largest share holder taken over from the Murphy’s family who as at that time was in control of the company.
Up till
INTRODUCTION 3
COMPANY SHARE PRICE 4
CAPITAL STRUCTURE 6 Equity as at the end of 2008 financial year 6 Cost of Equity 7 Debts as at the end of 2008 financial year 7 Cost of Debt 7 Equity as per the interim result in August 2009: 8 Debt as per the interim result in August 2009: 8
INM DIVIDEND POLICY 9
FUTURE DIRECTION 12
Conclusion 13
Bibliography 14
Appendixes 15
EXECUTIVE SUMMARY
Today, businesses are severely affected by the downturn in the economic activities and situation. The fact that nowadays most organisations find it so difficult to continuously achieve a sustainable growth due to scarcity of credit facilities, the credit crunch scandal which led to the global recession has made many corporate organisations to really struggle with repayments of their debts and also made it very hard for them to have a required working capital to finance their operations, in which Independent News and Media is not an exception.
This project, however, analysed and tracked changes that had occurred in the last 12 months in Independent News and Media. Areas analysed include: company share price, capital structure, dividend policy, and future direction of the company. Facts and figures are given to highlight these changes using both absolute and relative figures.
The project also examined various restructuring programmes embarked upon by the organisation to deal with tremendous decrease in its share price, changes in financial structure and dividend policy.
INTRODUCTION
Independence Newspaper was the bases of the independence news and media; it was founded by William Martin Murphy in Dublin in 1904. The company started with the production of morning news paper, later grown into the evening and Sunday’s production. In 1960, Sir Anthony O’Reilly bought a large amount of share in the company and became the largest share holder taken over from the Murphy’s family who as at that time was in control of the company.
Up till
Bibliography: • Modigliani, F.; Miller, M. (1958). "The Cost of Capital, Corporation Finance and the Theory of Investment". American Economic Review, 48, 261 – 297. • Power T. et al, (2005). “Financial Management: An Irish Text”, 2nd Edition, Dublin, Gills and Macmillan. • http://www.jstor.org/stable/1809766. (Accessed 12/11/2007) • http://www.inmplc.com (Accessed 12/11/2009) • http://miranda.hemscott.com (Accessed 12/11/2009) • http://www.irishtimes.com/newspaper/finance/2009/0127/1232923367653.html (Accessed 17/11/2009) • http://archives.tcm.ie/businesspost/2008/11/16/story37515.asp (Accessed 17/11/2009) • http://www.themanagementor.com/enlightenmentorareas/sm/sfm/PracAspecDiPo.htm (Accessed 17/11/2009) • http://www.citeman.com/747-dividend-policy-practical-aspects/ (Accessed 17/11/2009) • http://www.linkedin.com/answers/finance-accounting/corporate-taxes/FIN_CTX/573838-5586910 (Accessed 17/11/2009) 4. 2009 Interim Report