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Prospectus for Ath Fiji

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Submitted By singhroshan
Words 5265
Pages 22
AMALGAMATED TELECOM HOLDINGS LIMITED AND SUBSIDIARY COMPANIES 2nd Floor Harbour Front
Rodwell Road | Suva | Fiji Islands +679 330 8700 +679 330 8044 |

AMALGAMATED TELECOM HOLDINGS LIMITED AND SUBSIDIARY COMPANIES 2nd Floor Harbour Front
Rodwell Road | Suva | Fiji Islands +679 330 8700 +679 330 8044 |

1.0 EXECUTIVE SUMMARY

Trends and ratios calculated for the historical years 2006-2010 has been fluctuating, indicating effects of elements such as global recession, devaluation of currency, political situation, slow economic growth and competition. A thorough analysis was done on the internal and external factors and duly taken into consideration when forecasting numbers for 2011 - 2015. For comparison, a sensitivity analysis is carried out to show the company performances during good times and bad times.
Telstra Corporation Limited is taken as a benchmark due to its huge success in Australia. The trends show very positive results indicating management efficiency, asset efficiency and operations efficiency.
ATH beta was calculated against the STRI values of the market and ATH. This was then used to determine WACC of the company. Beta was found to be 0.6 indicating ATH’s lower risk portfolio compared to the market. Required rate of return was calculated to be 9%. A discount factor of 7% was obtained, as the company has about 1:1 debt to equity funding.
Some strategies used to arrive at forecast numbers are: * Political factor, current political uncertainty, perceived government policies * Proactive in gaining competitive advantage * The country’s inflation rate and expected growth * Company growth rate * Aggressive marketing efforts * Operational effectiveness * Investment in human capital. * Low investment due to recent heavy investments and realization

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