The following paper entitled 'Shares of Company Z Energy' is a perfect example of a financial and accounting term paper. Acquisition of a new company’ s shares has some retard and it is considered practical for a corporation to have an appraisal on the company in which its shares are going to be purchased. a number of factors like trend analysis and critique evaluation of the company productivity, liquidity, and the financial stability as well as considering micro and macroeconomic factors affecting the operation of the company and making an assessment as to whether the company is a going concern should be ascertained before making an intention to acquire shares of company Z energy. The result analyzed signifies that the Z energy company operation is faring well because of its steady growth.
Cross-sectional analysis and the industrial average was done and adequacy of data for comparison purposes depicts a positive trend because the listing of share in the security market for Z energy would make the company one of the leading companies in the fuel industry. Subsequent are the detail examination of the just concluded statement on the depicted trend and prospect operation of the Z energy and analysis of its continued existence in the business, external issues affecting its performance And whether Z limited should be acquired by Hermes investment group or not, Financial performance of Z Energy in the past, The company made steady growth in the preceding years.
This signifies that the Z energy limited can withstands the competition with other companies in the fuel industry in the country and thus it depicts a going concern. In this case, purchasing the shares in this company would be viable because the company does not pose any threat.
Also, steady growth depicts a positive trend of company shares in the market and thus purchase consideration of 3.5 $ per shares will be earned back from investment in form of profit within a given time consequently implying that Z energy limited has a minimal rate of risk and high returns because it shares are not over-valued. (Taulli, 2012) A viable company should be able to portray a positive trend in its performance as well as the capital employed ought to give returns as well as financing its operation.
These are some of the key factors a potential investor will consider before investing in a company. Risk and returns determine the viability of a company and thus an optimal capital structure will reduce the level of leverage. Future growth opportunitiesListing of shares in NZX and ASX would boost the company performance in the fuel energy because the initial public offer of Z energy of 3.5 is not over-valued and hence their securities will sell well in the securities market while making the company more competitive in the stock market.
Being in the top 20 performing companies in the fuel energy depict investment opportunities for Z energy. This is due to the fact that a fresh competition will emerge and thus to remain smart in the competitive market, Z energy will be forced to promote its product in the market.
Geddes, R. (2003). In IPOs and Equity Offerings (p. ppg 4).
Taulli, T. (2012). In High-Profit IPO Strategies: Finding Breakout IPOs for . (p. ppg 117).