Reference no: EM131505567 , Length: word count:3000

Principals of Financial Markets Group Assignment

In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis. Fundamental Analysis seeks to identify factors that are likely to influence directional changes in the value of a company and hence its share price. These factors may be macro or micro in context.

Requirements: The assignment comprises two related sections:

a) Conduct a Top Down analysis of the overall economic environment and consider how forecast changes in economic fundamentals will impact on the performances of companies in the industry your group has chosen. Consider questions including, but not limited to: What is the current interest rate? What is the current value of the $AUD? What is current GDP etc?

b) Conduct a Bottom Up analysis of companies' current financial situation. Consider accounting ratios and measures of a firm's performance, how these need to be compared to the industry and company history,

All of the required information for calculation and often the actual ratio/number can be found on various websites on the internet.

When writing the report, imagine that your audience are people that know nothing about finance or the financial markets. At each stage you will need to carefully explain what do are analysing and why. Do not think that just because your lecturer will know what this ratio means that you do not have to define it.

You should also give a brief introduction of the industry and the history, mission statement of your chosen companies. Your paper should conclude with a summary of your findings and recommendations for each of your companies. Word length is 3000.