Billabong International analysis from Corporate Finance Perspective

1. A FINANCIAL ANALYSIS BY: SHETTY SEKHAWAT SINGH MOH & THAKKAR ASX:BBG

4. CAPITAL STRUCTURE

5. CAPITAL STRUCTURE DEBT TO EQUITY RATIOS 74.23% 20.72% 133.11%

6. CAPITAL STRUCTURE

7. CAPITAL STRUCTURE 91.92% 95.92% 96.89% 95.73% 93.65% 91.22% Interest Burden ratio 75.40% 68.51% 68.36% 68.06% 70.01% 67.51% Tax Burden Ratio 1.83 1.77 1.46 1.56 1.50 1.32 Leverage Ratio 2007 2006 2005 2004 2003 2002

10. DIVIDEND POLICY

11. DIVIDEND POLICY

18. EVENT STUDY

19. Market Model

20. CAR (Event Window).

21. CAR (Pre-Event) The t-stats for these windows posted a result between -0.4097 and 0.3899, which underwent hypothesis testing at 95% confidence interval. Null hypothesis was consistently accepted in all cases, since result is in acceptance region (-2.045<t<2.045) and thus proving that there was no significant movement to show abnormal returns during the pre-event period.

22. CAR (Event Announcement) The t-stat test suggests that there are no significant changes to the returns during the event window H 0 Rejected (0.2760) -2.1100% 1 H 0 Rejected (0.5354) -4.0928% 0 H 0 Rejected (0.4831) -3.6934% -1 Result t-stat AR Event Days Single Day Abnormal Return

23. CAR (Post-Event) . The Calculation of the t-stats was the same as in pre event and it ranged from -1.3257 to 0.1766, which goes to show the stability of the company’s returns and its ability to absorb the effect of the events and not show abnormal return

25. QUESTIONS ?