Financial investment advise eden consultancy ltd

Assignment Help Finance Basics
Reference no: EM13828439

Problem:

You have recently been hired as a part time trainee analyst by Eden Consultancy Limited (ECL). Sonia Fisher, the owner of the firm and your immediate supervisor has been approached by a client, Aroha Toi for financial advice. Aroha has recently received $10,000 from her grandmother's estate and would like to invest this money in the share market. She is interested in investing in the electricity industry as friends have advised her that this industry seems to be doing very well. Sonia has asked you to investigate the electricity industry in NZ and ONE company from this industry listed on the NZ Stock Exchange (NZX). She has asked you to write her a report based on your findings. In your report you are to make a recommendation as to whether the electricity industry is a good industry to invest in at present. You are also to make a recommendation as to whether Aroha should buy shares in the company you have investigated. My chosen electricity industry is Trust Power Limited (TPW).

You are required to write a report in which you:

  • Draw conclusion based on your findings
  • Make recommendations based on finding and conclusion

Statistics

  • Retrieve data on electricity generation in NZ from the Ministry of Economic Development website (https://www.med.govt.nz)
  • Go to Energy and Resources > Energy Information > Energy Data > Electricity > Tables > Table 2a: Net Electricity Generation by Fuel Type (GWh) > Table 2a: Net Electricity Generation by Fuel Type (GWh) [80kB XLS] > Quarterly GWh
  • Use the Total generation starting at the March quarter, 2002.
  • Analyze the data to find adjusted seasonal indices for each quarter, and seasonally adjust the data.
  • Forecast quarterly total Electricity generation up to the March quarter of 2011.
  • Present a concise spreadsheet showing your calculations and one full page graph showing the data, centered moving average, seasonally adjusted data and your forecast. You could include a smaller copy of your graph in your discussion of findings. Include on the spreadsheet a justification of any assumptions you make in your analysis.
  • Use the CPI to deflate one of the accounting elements you are using in your Accounting analysis of trends. Show your analysis on a spreadsheet and graph.

Accounting

  • Retrieve the financial statements of your chosen company for a number of periods, including the latest accounting period and analyze the trends shown (by using appropriate graphs) in terms of one or more accounting elements such as income, assets etc.
  • Analyze the financial statements of your chosen company by calculating the key ratios for the two latest accounting periods on business performance (profitability and efficiency ratios), and financial stability (liquidity and financial structure ratios).
  • Analyze the company performance and value from the perspective of a prospective investor such as Aroha by using investor (market) ratios.

Finance

  • Retrieve share market data on the listing of your chosen company and analyze the data in terms of number of shares, share price, market capitalization, type of shares etc.
  • Compare and analyze the shares of your chosen company by finding at least two share brokers valuations/recommendations for the company's shares.
  • Analyze the share price performance of the company by comparing it with the performance of the stock market index (NZX50). Using a graph show changes in the value of a $10,000 investment in the company shares against the market (NZX50) over a period of time.
  • Analyze the bond listing of the company in relation to how much is owed and the financial risk.

Additional Information:

The question is from Financial Management. The question is about financial advisor company which advices people about investing. In this question person who is interested in investing in electrical industry, approaches the financial advisor company. A research in the background of electrical company is done on behalf of the person. The solution haves all the details comprising statistical analysis, financial analysis, etc.

Reference no: EM13828439

Questions Cloud

Describe the deterministic model and stochastic model : Describe the deterministic model and stochastic model and Describe function, linear function and non-linear function. Give an example of linear and nonlinear function, respectively.
Swot analysis and porters five force model on harley davids : SWOT Analysis and Porter's Five Force Model on Harley Davidson
Define and explain value proposition : Generate a 8 -slide Microsoft PowerPoint presentation on niche marketing and customer involvement for a fashion organization. Define and explain value proposition. Discuss the value proposition of your business or proposition
Haier: taking a chinese company global : Haier: Taking a Chinese Company Global
Financial investment advise eden consultancy ltd : You have recently been hired as a part time trainee analyst by Eden Consultancy Limited (ECL). Sonia Fisher, the owner of the firm and your immediate supervisor has been approached by a client, Aroha Toi for financial advice.
What were your opportunity costs in making the purchase : Why did you buy them. What were your opportunity costs in making the purchase. What would have been the opportunity cost, if you had NOT made the purchase
Question on npv-payback period-profitability index : MCL Ltd is a manufacturer and distributor of agricultural equipment. MCL produces milking machines and supplies as well as being the sole Australian distributor of machinery from the US- based company FarmGo Ltd.
Cost-volume-profit models : Bennis Shafts produces three types of golf club shafts which it sells to golf club manufacturers.  Prepare ONE worksheet to answer the following questions and to determine the outcomes of the different scenarios below.
What are the legal issues with the case : What are the legal issues with this case. How does this case apply to trade terms for the transportation of goods

Reviews

Write a Review

Finance Basics Questions & Answers

  Consequently earnings appear lower than normal and this

equity valuations in todays market are arguably too high. many analysts assert that price-toearnings ratios are so

  Plot the time path of the prices for each of the two bonds

Plot the time path of the prices for each of the two bonds (x-axis = years to maturity; y-axis = bond value)

  What is the current share price

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.70, $16.70, $21.70, and $3.50. Afterwards, the company pledges to maintain a constant 5.50 percent growth rate in dividends, forever.

  Incremental cash flow related to working capital

To estimate the increase in working capital, analysts estimate the ratio of cash and cash-equivalents to revenue to be 0.03 and the ratios of receivables, inventories, and payables to revenue to be 0.05, 0.10, and 0.04, respectively, in the same i..

  What would you expect the stocks price to be in five years

Mitech Corp's stock price has been growing at approximately 8% for several years, and is now $30. Based on past growth rate performance, what would you expect the stocks price to be in five years?

  Question regarding currency

One function of the foreign exchange market is to convert the currency of one country into the currency of another. A second function of the foreign exchange market is to provide insurance against foreign exchange risk.

  Calculate the optimal money growth rate needed for the fed

Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.

  Calculate the salary at the end of 24th year from now

Calculate the salary at the end of 24th year from now from the facts and what will 80% of your last year's salary be

  If a firm expects to have additional financial

if a firm expects to have additional financial requirements in the future would you recommend that it use convertibles

  What is the target stock price in five years

The required return is 12 percent. What is the target stock price in five years? What is the stock price today?

  What is the present value of your total lottery payments

Assuming an interest rate of 8%, what is the present value of your total lottery payments?

  Importance of organizing and describing data

Write a paper on the importance of organizing and describing data and how frequency distribution aids healthcare researchers/practitioners. The paper should be two-pages and include a minimum of two cited sources.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd