Consider this hypothetical scenario...
The company makes $5M NPAT in FY17.
On July 1st 2016, the stock is 40c, and on June 30th 2017, its 44c (a 10% rise in a year). This would constitute a market cap of ~$170M.
If the All Ordinaries stays flat next year, does the "investment manager" take home $30M, or 17.5% of the market capitalisation, as per page 68 of the company prospectus? That's 6 times the profit that the firm made. How can the company expect to re-inject its profit to generate a return on equity?
Consider this hypothetical scenario... The company makes $5M...
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