Question

Q1. a)    The Commonwealth Bank of Australia (CBA) recently announced a “cash net profit from continuing operations for the 2020 Financial Year of $7.3 billion”.  What is Commonwealth’s dividend policy, and what was the total dividend paid to shareholders in 2019/20?

Fortescue Metals Group (FMG) reported a 49 per cent increase in full-year net profit in FY2020. How much was this profit?

(1 Mark)

c) What was Mineral Resources Limited’s (MIN) EBITDA for the last financial year, ie, FY20?

Answer 1

a) Commonwealth Bank of Australia pay cash dividends at strong and sustainable levels and they target a full-year payout ratio of 70% - 80%; and also maximise the use of its franking account by paying fully franked dividends.

Dividend Paid in 2019/20 : They have paid a total dividend of $4.31 per share (fully paid ordinary shares) in two shifts, first on 26/09/2019 of $2.31 and second one on 31/03/2020 of $2.00.

b) The world's fourth-biggest iron ore miner reported net profit of $US 4.74 billion for the 12 months to 30 June, a 49 per cent increase from the previous year.

c) Mineral Resources Limited’s (MIN) EBITDA for the last financial year, ie, FY20 was 739 AUD Millions.