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Corporate Finance- FNCE3000Case study
IntroductionRoyal Wolf Holdings Limited (ASX: RWH) is a listed company on the ASX dealing in commercial services and suppliers.1The company was incorporated in 1995. Royal Wolf Holdings Limited together with its subsidiaries concentrates itself in leasing, sale andmodification of new and renovated shipping containers. The company commits itself to offer a wide range of shipping containers and portable building products to suit the need of customers.2The firm’s most notable subsidiaries as at 30 June 2015 are outlined below3:Subsidiary’s nameEquity HoldingPrincipal ActivitiesRoyal Wolf Trading Australia Pty Ltd100%Sale and HireKookaburra Containers Pty Ltd100%Dormant1“Company Overview,” Royal Wolf Holdings Limited,2Ibid1
Royal Wolf NZ Acquisition Co Ltd100%New Zealand ParentRoyal Wolf Trading New Zealand Ltd100%Sale and HireThis report has been prepared to give an overview of Royal Wolf Holdings Limited, its shareholders, a risk-return analysis and the company cost of capital. 1Shareholder AnalysisRoyal Wolf Holdings Limited is believed to be the largest container provider in Australia. Moreover the company is well-known for its competitive pricing scheme and offers a wide variety of products.4In other words, this helps the company to attract shareholders in order to increase their return. As the company is highly experienced and has a good management in this 3“Annual Report Presentation,” Royal Wolf Holdings Limited, 4“Company Overview,” Royal Wolf Holdings Limited, .2
industry, risk is minimized thus increasing the company’s potential to attract domestic and foreign investors.The marginal investors are defined as the people who have a huge number of shares in a particular company.5They are usually engaged in regular trading that is they are buyers and sellers in the stock market. Marginal investors are often described as the one who establish stock price. This report analyses the marginal investors of Royal Wolf Holdings Limited by analysing the top twenty shareholders of the company. Appendix A below contains a table of the top twentyshareholders of Royal Wolf Holdings Limited as at 30thJune 2015. Based on the annual report of Royal Wolf in 2013, the company issued a total of 100,387,052 shares.6From the Appendix A, the major shareholder of Royal Wolf Holdings Limited is GFN 5DamodaranAswath, Investment Valuation 166.6“Annual Report Presentation,” Royal Wolf Holdings Limited, .3
U.S Australasia Holdings, INC which holds a total of 50% of issued shares. Since the company became a parent company to Royal Wolf in 2007, the majority investor is an insider5.