A Listed Company Financial Performance Analysis

Introduction
Mondi plc as an international group of company dealing in paper and packaging has integrated fully across the paper and packaging value chain which evolves from producing compound plastic, papers, and pulps. The firm area of business is to develop innovative and effective solutions for consumer and industrial packaging. The model of its business defines how the group uses its resources to develop value for shareholders, employees and customers. Mondi ideally operates internationally across South Africa, North America and Russia and Central Europe. However, its key offices are situated in the UK and South Africa. Mondi plc premium is listed in London Stock Exchange and its primarily listed in Johannesburg. The company is located in over 30 nations and operates in more than 100 locations across the global market. In 2014, the revenue of Mondi was quoted as €6.4 billion and their return with regards to capital employed was also quoted as 17.2%. This was due to the company’s pursuant on achieving competitive position through its strategies and structure which even reflects in the chart below. The brown line indicating the performance of Mondi plc.
FTSE ALL SHARE INDEX
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(A) Analysis of UK’s Yield Curve
A yield curve is the curve illustrating yields of securities with fixed interest their maturity. The yield curve can either slope upward, downward or flat.
Theories explaining the yield curve
With regards to Mishkin (2007) the yield curve has three theories which are normally used to expound the interest rate term structure and the treasury yield curve shape variations and these theories are preferred habitat, liquidity preference and expectation theory.

The Expectation Theory:
The expectation theory by Mishkin (2007) declares that, lower interest rates causes the yield curve to slope downward and as interest rate is to be risen with expectation in the future the yield curve would show a positive slope by moving upwards.
The...