Kathmandu Case Study: Finance (HSC SSCE Business Studies): Flashcards

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Influences on Financial Management
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Three brands operated by KHL

Kathmandu, Rip Curl, and Oboz

Retained profits definition

Earnings kept in business after dividends paid to shareholders

KHL's retained profits amount (2020)

$165,426,000

Key advantage of using retained profits

No interest costs incurred

Equity finance definition

Raising capital by selling ownership shares in the company

Stock exchanges where KHL is listed

Australian Securities Exchange (ASX) and NZX

Franking credits definition

Tax credits reducing/eliminating double taxation on dividends

ASIC full name

Australian Securities and Investments Commission

Impact of record low interest rates on KHL

Reduced borrowing costs and improved profitability

COVID-19 online sales increase for KHL

46% increase from 2019

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