Reference no: EM132375877

LEARNING OUTCOMES

1. Understand how to use accounting information for decision making.
2. Critically analyse the impact of company information on share price in the Australasian context.
3. Understand the sharemarket activities and financial analysis.
4. Gain practical experience in share-market activities, making decisions and monitoring the sharemarket.
5. Demonstrate knowledge of sharemarket activities and evaluate the impact of the share price on the total value of a share portfolio.

Companies

1 - woolworth
2-Bhp
3-kogan .com ltd

PART 1

You will be required to work with the team members to complete Part 1 - Share Selection Sheet shown on page 5 and 6.

Each student in the team is required to complete an Individual Submission shown on page7 to explain your choice of company.

One copy of the Share Selection Sheet is to be completed and submitted for your team.

Please attach to this your Individual Submission and submit in Tutorial Week 4.

PART 2 and 3

You are required to work closely with your team members on these major parts of the assignment.

One assignment is required to be submitted on behalf of your team.

Attach to the front of your assignment an Assessment Declaration signed by each member and be aware of its content shown on page 12.
Each team member is expected to contribute equally to the assignments as the same mark will be given to each team member.
Marking Scheme is shown on pages 8 to 11to informyou on how you will be marked so that you can maximise your assignment mark.

PART 1 SHAREMARKET ASSIGNMENT SHEET - complete and submit sheets on p.5-7

Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to $10,000 worth of sharesfor group of 2 students or $15,000 worth of shares for group of 3 studentsbased on the closing share prices posted on the ASX website on Monday22 July2019. Check after 6pm to ensure that the latest price has been updated.

During the tracking period, Monday 22 Julyto Friday 16 August 2019, your team is to monitor the performance of the shares and the overall performance of the Australian share-market. Can you maximize the value of your share portfolio?

PART 2 COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION

[A] A brief description of each company in your team's portfolio. It should be presented as a comparative table and should include: -

• Products And Services Provided By The Company [brief outline]
• Name of Chief Executive Officer [or Managing Director]
• Salary of Chief Executive Officer [or Managing Director]
• Profit / Loss after Taxfrom 2018 Annual Report for the full financial year - consolidated figures
• Latest Dividend Paid - Dividend Per Share and Date Paid
• Size Of The Business By Total Assets - from 2018 Annual Report - consolidated figures
• Number Of Employees
• Share Price - 52 week High And Low at the end of trading on Friday 16 August 2019- from the Factiva Database or other suitable site.

[B] For the tracking period only, using an Excel spreadsheet, prepare your own graph of the daily share price movements for each of your shares. Information should be shown in a table with separate columns for Date and Closing Price ($).

For the tracking period only, using an Excel spreadsheet prepare your own graph of the daily movement of the All Ordinaries Index. Information should be shown in a table with separate columns forDate and Closing Value [points] Copy and Paste Excel Tables and Graphs into a Word Document to include in your report.

[C] For each company, provide an overview of the share price performance and describe the overall trend of the Australian share-market over the tracking period. Describe how each of your shares performed against the All OrdinariesIndex. Explain major movements in your share prices and the share-market with evidence from newspapers, business magazines, internet information or other relevant sources. Evidence should be included and news articles should be photocopied and neatly presented in an appendix to your report. Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. See "Harvard Referencing" links on BAO1101 website.

[300 words maximum for each company and comparison with the All Ordinaries Index]

[D] Calculate the Gain or Loss made on your portfolio during the tracking period.

[E] Provide a recommendation [buy / sell / hold] for each of your shares.

Support each recommendation with relevant information you have found in Part [C].

PART 3 - IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS

[A] IDENTIFICATION OF KEY FINANCIAL DATA

For each company you have selected, complete the following table of Key Financial Data.
Find the figures from the 2018 Annual Report with results for the full financial year for 1 July 2017 to 30 June 2018
The "consolidated" figures are required.

[B] RATIO ANALYSIS

From the Key Financial Data, calculate relevant ratios provide an overview of each company's: -

*Profitability *Stability *Liquidity

At least 6 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each company's Financial Statements.

For each of the headings listed above, your overview should:

1. Identify the name of the ratio used and interpret your results.

2. Provide an explanationof why these ratios may differ between your companies.

3. Which do you consider to be the better investment? Explain your reasoning.

Refer to your Subject Resource Workbook for formulae and interpretation.
Please note that Topic 4 - Ratio Analysis and Interpretation will be covered in Weeks8 and9.

[B] RATIO ANALYSIS[250 words maximum for each company]... mark should reflect quality of answer

Overview of each company's
• Profitability
• Stability
• Liquidity

Identify the name of ratio used and interpret results.
At least 6 ratios in total should be used for this overview.

For each ratio, explain why they may differ between your 2 companies.

Identification of which company to be the better investment / explain reasoning

All formulae and calculations must be clearly shown.

[B] Graph - Share Prices and All Ordinaries

Students are required to prepare their own graphs using Excel
Students should include all prices per week.
Graphs should have appropriate labels and scales.
Marks should be subtracted for graphs that are hard to read and interpret.
Table with share prices of each company and All Ordinaries dates and value should be included
[subtract 2.5 marks if table with share prices and All Ordinaries dates and values not included]

[C] OverviewOf Share Performance / Trend of Share-market

[300 words maximum for each company and comparison with the All Ordinaries= 900words]
Description of the share price performance over the tracking period
Description of the overall trend of the sharemarket
Comparison of share performance with the All Ordinaries
Evidence of research on the share price to be included in the appendix / bibliography
[at least one relevant article for each company - scanned and neatly presented in appendix]
Analysis and interpretation of the evidence

[D] Calculation Of Gain / Loss On Portfolio

Calculations for each share should be clearly shown as well as a portfolio total.

[E] Recommendation On The Share Portfolio [50 words each company = 150 words]

Allocate up to 2.5 marks for a basic recommendation with some logical support

PART 3 - IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS... [ Total 35 Marks ]

[A] KEY FINANCIAL DATA

[B] RATIO ANALYSIS [250 words maximum for each company]... mark should reflect quality of answer

Overview of each company's
• Profitability
• Stability
• Liquidity

Identify the name of ratio used and interpret results.
At least 6 ratios in total should be used for this overview.

Additional marks for extra initiative.

For each ratio, explain why they may differ between your 3 companies.

Identification of which company to be the better investment / explain reasoning

All formulae and calculations must be clearly shown.

Attachment:- Accounting for Decision Making.rar