Notes to the Financial Statements
For the year ended 30 June 2009
27. CONTRIBUTED EQUITY (continued)
(c) Capital Risk Management W h e n m a n a g i n g c a p i t a l , m a n a g e m e n t ’ s o b j e c t i v e i s t o e n s u r e t h a t t h e C o n s o l i d a t e d E n t i t y c o n t i n u e s a s a g o i n g c o n c e r n . Management also aim to maintain an optimal capital structure that reduces the cost of capital.
In order to maintain or adjust the capital structure, management may change the amount of dividends paid to shareholders, offer
a dividend reinvestment plan, return capital to shareholders, issue new shares or sell assets to reduce debt.
During the year ended 30 June 2009, a dividend of $5,332,489 was paid (2008: $6,753,337).
Management has no current plans to issue further shares to increase the capital base.
Management monitor the capital mix through the debt to equity ratio (net debt/total equity) and the debt to total assets ratio (net debt/total assets). Based on continuing operations, these ratios are as follows:
Interest-bearing loans and borrowings * Less: cash and cash equivalents
Net debt to equity ratio
Net debt to total assets ratio
Excludes leased assets amounting to $1,160,501 (2008: $1,448,847).