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Maersk
___________________________________________________________________________________________________
THE TRINITY SCHOOL OF BUSINESS
BU7506 Corporate Finance
28 November 2014

Lecturer: Professor Brian Lucey

Evaluation of Capital Structure and
Value of Maersk

Cristina Cozma

14302432

Fredis Khalitov

14306841

Laurynas Gudaitis

14308375

Rory Pat O’Connor 13305169

A.P. Moller Maersk , 2014

CONTENTS
0
STAGE ZERO – SETTING THE STAGE ........................................................................................................ 2
Maersk Background ............................................................................................................................ 2
Financial Performance ........................................................................................................................ 3
Taxation............................................................................................................................................... 5
Operating leverage ............................................................................................................................. 6
Accessing Finance ............................................................................................................................... 7
STAGE ONE- DESCRIPTION ...................................................................................................................... 8
Mix of Debt and Equity over the past three years .............................................................................. 8
Maturity of debt and equity versus assets ....................................................................................... 11
Currency analysis .............................................................................................................................. 12
Exoticness ......................................................................................................................................... 13


Bibliography: A.P. Moller – Maersk A/S (2014) ‘Annual Report 2013’, A.P. Moller – Maersk A/S, [Accessed 31st October 2014]. Anderson, P. L. (2014, November 25). Tax Burden Ratios. Retrieved from Mackinac: http://www.mackinac.org/6442 Arnold, G. (2005). Corporate Finance (Third ed.). Harlow: Pearson Education Limited. Clayman, M.R., Fridson, M.S. & Troughton, G.H., 2008. Corporate Finance, A Practical Approach, John Wiley & Sons, Inc. Corporate Governance (2013) ‘Recommendations on Corporate Governance ‘, Committee on Corporate Governance [Online] Available from: HYPERLINK Creative Services (2014) ‘The role of the Chairman as well as the value of a non executive chairman’, Deloitte [Online] Available from: HYPERLINK Conyon, M.J., & Peck, S.I. (1998) ‘Board control, remuneration committees and top management compensation’, Academy of Management Journal, 41, 2, pp ESM. (2014, January 08). Maeresk To Sell Off Dansk Supermarked For $3bn. Retrieved from European Supermarket Magazine: http://www.esmmagazine.com/201401081739/Supply-Chain/Maeresk-To-Sell-OffDansk-Supermarked-For-$3bn.html Gibbons, R (2010) ‘Risk Management in Foreign Exchange Shouldn’t be a Foreign Idea’, A.P. Moller Maersk , 2014 Gritta, R GuruFocus, 2014. What Worked In The Market From 1998-2008? Intrinsic Value, Discounted Cash Flow And Margin Of Safety Habbash, M, Lijuan, X, Salama, A, & Dixon, R (2014) ‘Are Independent Directors and Supervisory Directors Effective in Constraining Earnings Management?’, Journal of Finance Lucey, B (2014) ‘A Practical Framework for Analysing Dividend Policy’, Lecture notes distributed in Corporate Finance at Trinity College Dublin. Lucey, B (2014) ‘Getting to the optimal’, Lecture notes distributed in Corporate Finance at Trinity College Dublin. Maersk (2014) ‘Major Shareholders’, Maersk [Online] Available from: HYPERLINK "http://investor.maersk.com/ownership-profile.cfm" http://investor.maersk.com/ownershipprofile.cfm [Accessed 1st November 2014]. Maersk (2014) ‘Board of Directors’, Maersk [Online] Available from: HYPERLINK "http://investor.maersk.com/directors.cfm" http://investor.maersk.com/directors.cfm MAERSK. (2014, 11 20). The Maersk Group. Retrieved from http://www.maersk.com/en/the-maersk-group/about-us Mikkelsen, O, & Jensen, T (2014) ‘Maersk to buy back shares for first time, earnings rise’, Reuters [Online] Available from: HYPERLINK Saunders, A (2014) ‘How to be a Chairman’, Management Today, 6, pp. 50-53 Tusek, B, Sever, S, & Oluic, A (2008) ‘The Role of Audit Committee in Corporate Thomson Reuters Eikon (2014) ‘AP Moeller Maersk A/S, Debt Structure’ [Accessed 31st October 2014]. Watson, D. & Head, A., 2013. Corporate Finance. Sixth ed. Harlow: Pearson Education Limited. Watson, D., & Head, A. (2013). Corporate Finance (Sixth ed.). Harlow: Pearson Education Limited. A.P. Moller – Maersk A/S (2014) ‘Annual Report 2013’, A.P. Moller – Maersk A/S, [Accessed 31st October 2014]. Anderson, P. L., 2014. Tax Burden Ratios. [Online] Available at: http://www.mackinac.org/6442 [Accessed 25th October 2014] Arnold, G., 2005. Corporate Finance. Third ed. Harlow: Pearson Education Limited. Clayman, M.R., Fridson, M.S. & Troughton, G.H., 2008. Corporate Finance, A Practical Approach, John Wiley & Sons, Inc. Corporate Governance (2013) ‘Recommendations on Corporate Governance ‘, Committee on Corporate Governance [Online] Available from:
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