Accounting Assignment 17. What type of share and how many has BRZ issued? What is the total amount of contributed equity at 26 June 2004? The total amount of common shares outstanding) is 117, 605, 636 as found in the financial report of Brazin at the end of 2004. During the year in 2004, Brazin issued 1,228,850 shares and did not issue any shares in 2003. the total amount of shares outstanding of Brazin in 2003 was 116,376,786. One June 26, 2004 the amount of contributed equity was $58,875. In 2003 the amount of contributed equity totaled $57455. 18. What is the total amount of dividends provided for and paid for 2004? What proportion of the current profit does this amount represent? Explain why all profits are not automatically distributed to shareholders as dividends each year. According to the annual report of Brazen, the total amount of dividends as provided and paid for 2004 (declared) is 2 cents per share or $2,353,000 on ordinary shares. $2,353,000 is about 19.35% of the total profit for the same time period. There are many reasons why all profits are not automatically distributed to shareholders as dividends each year. The primary reason is that the company needs to reinvest in itself in order to grow and become more profitable in the future. The company needs to spend additional funds on R&D. 19. Find or calculate the following information that would be relevant as a shareholder of BRZ: (compare 2 years) • Earnings per share, EPS, as found in the annual report of Brazin on page 13, were 10.4 cents per share in 2004 and only 1.8 cents per share in 2003. One needs to remember that the earnings per share for basic and diluted shares were the same. • Current share price (refer www.asx.com.au) of Brazing as based on http://finance.yahoo.com/q?s=BRZ.AX&d=t and www.asx.com.au is 1.950 on September 2nd, 2005. • Price earnings ratio (based on current share price) equals Market value per share divided by the EPS. For year ended Jun 2004, the P/E ratio equals 1.95/0.104=18.75 For year ended Jun 2003, the P/E ratio equals 1.95/0.018=108.33 • Book value per share equals total equity less preferred stock divided by the total number of common shares. The total equity in 2004 was $75,367,000 and $68,091,000 in 2003. Book value for 2004=$75367000/117605636=$0.641 Book value for 2003=$68091000/116376786=$0.585 • Dividend yield (based on current share price) equals Dividend per share divided by the • current share price. For year ended Jun 2004, dividend yield equals 0.06/1.95=0.0308 For year ended Jun 2003, dividend yield equals 0.1/1.95=0.0513 20. Briefly provide an overview of Brazin Group. Include a description of the main operating activities, location of operations and an indication of the size of the group (e.g., numbers of employees, sales revenue, number of stores, total assets, market capitalization, etc). Include in your overview a discussion on the entities that from the Brazin consolidated entity. Brazin limited is a large publicly listed Australian company that operates over 670 retail stores around Australia. It owns the following brands: Sanity Entertainment, Virgin entertainment, BNT (Formally Bras n Things), Aztec Rose, Ghetto, Dusk, Diva, Insane and Ezydvd. The company was created in 1980 as a music store in Pakenham, Victoria, by its founder Brett Blundy and over the period of 20 years grew in a large corporation. With annual sales in 2004 of $421,329,000 and $539,212,000 in 2003. The company’s total assets equals to $151,014,000 in 2004. The market capitalization of Brazin is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. For Brazin in 2004, market capitalization was $1.95 times 117, 605, 636 shares equals $229,330,990.2 Bibliography 1. Australian Stock Exchange. Sept. 2nd, 2005 retrieved from: ; 2. Brazin FPO. Sept. 2nd, 2005 retrieved from: .