Prepare a brief description of the selected company

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Reference no: EM132211384 , Length: word count:3000

Finance for Business Assignment -

Tasks - This assessment task is a written report and analysis of the financial performance of a selected listed company on the ASX in order to provide financial and investment advice to a wealthy investor. This assignment requires your group to undertake a comprehensive examination of a firm's financial performance based on update financial statements of the chosen companies.

BACKGROUND - You're a group of investment analysts who work for a large investment consulting firm based in Australia. There's one big institutional investor from overseas that is interested in investing in the Australian market. You've been asked to choose a listed company in Australia (in the industry you think will have the most promising future for investment) then evaluate it and give your client financial advice on whether or not she/he should include the share of that company in her/his investment portfolio.

Required: Create your group's "business name" under which your group will be providing the financial advisory services. Choose one listed company that your group will investigate/analyse for the purposes of possible recommendation to your client. The group should obtain all information about the selected company from this web site: Australian Securities Exchange.

Obtain a copy of the last two financial years (2016-2017 and 2017-2018) Financial Statements of the chosen company (annual reports are accessible via company websites). Your group can downloaded these documents from the suggested web site using the firm's code (example, BHPfor BHP Billiton Company, etc.).

1. Description of the companies - Prepare a brief description of the selected company, outlining the core activities, competitive advantages, and the market in which it operates within and any factors in the company's history which you consider help present a "picture" of your chosen company.

2. Calculation and analysis of financial ratios - Using financial data obtained from current financial statements of your selected company for the given 2 years to calculate the following ratios and present them in relevant charts or tables. Provide analysis on the company performance and justify your opinions using the data:

  • Liquidity ratios
  • Profitability ratios
  • Market value ratios

3. Graphs and comparison of share price movements - Using the information from the ASX website: to prepare one or more graph displaying movements in the monthly share prices over the last two years for the chosen company that you are investigating.

Providing an analysis to compare the movements in the companies' share prices to the All Ordinaries Index. For instance, whether your selected company price trend is more or less volatile compared to the index? How closely it is correlated with the All Ordinaries Index, above or below the index?

Do a research to identify the factors that affected the share price movements of the company within 2 years.

4. Calculation cost of equity - Go online to Reuters website and type in the code for your company into the Search Stocks field and click on the magnifying glass button.

What is the calculated beta (β) for your company?

If the risk free rate is 6 % and the market risk premium is 7 %, use the Capital Asset Pricing Model (CAPM) (SML approach) to calculate the required rate of return for the company's shares.

5. Identify the capital structure - Identify and discuss the capital structure of the company by calculation capital structure ratios and weights of debts and equity capital. Comment on any change in the company's capital structure through years. Support your comments and analysis by further research.

6. Consulting Report - After completion of your analysis, you need to present a wellstructured report to your client using appropriate style and language.

Structure of the Report: will include:

1. Title

2. Introduction

3. Table of Content

4. Body (in text citation: paraphrased or quotation to support your arguments)

5. Conclusion

6. Recommendation

7. Reference lists (Harvard Style).

Attachment:- Assignment File.rar

Reference no: EM132211384

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Reviews

len2211384

1/9/2019 2:33:49 AM

Length: 3000 words. Students are required to form a group to study, undertake research, analyse and conduct academic work within the areas of business finance covered in learning materials Topics 1 to 10 inclusive. The assignment should examine the main issues, including underlying theories, implement performance measures used and explain the firm financial performance. Your group is strongly advised to reference professional websites, journal articles and text books in this assignment (case study).

len2211384

1/9/2019 2:33:41 AM

This assignment must be completed IN Group. Each group can be from 2 to maximum 5 student members. Each group will choose 1 company and once the company has been chosen, the other group cannot choose the same company. First come first served rule applies here, it means you need to form your group, choose on company from the list of ASX and register them with your lecturer as soon as possible. Once your lecturer registers your chosen company, it cannot be chosen by any other group. Your lecturer then will put your group on Black Board to enable you to interact and discuss on the issues of your group assignment using Black Board environment. However, face to face meeting, discussion and other methods of communication are needed to ensure quality of group work. Each group needs to have your own arrangement so that all the group members will contribute equally in the group work. If not, a Contribution Statement, which clearly indicated individual contribution (in terms of percentage) of each member, should be submitted as a separate item in your assignment. Your individual contribution then will be assessed based on contribution statement to avoid any free riders.

len2211384

1/9/2019 2:33:34 AM

Submission - Please make sure that your group member’s name and surname, student ID, subject name, and code and lecture’s name are written on the cover sheet of the submitted assignment. When you submit your assignment electronically, please save the file as ‘Group Assignmentyour group name .doc’. You are required to submit the assignment at Group Assignment Final Submission, which is under Group Assignment and Due Dates on Black Board. Submitted work should be your original work showing your creativity. Always keep an electronic copy until you have received the final grade for the Unit. Please make sure that you submit the correct file. Any appeal relating to submitting wrong files after the deadline will not be considered.

len2211384

1/9/2019 2:33:28 AM

Presentation of written work - The report must have an academic written structure including an introduction, body and conclusion. Use numbers to structure body of the report (e.g., “2.5. Research via the internet”). Provide an explanation on each of these issues (points) and explain how they confirm the underlying financial management theory. You are required to use Times New Roman font, size 12 with 1.5 line spacing. Please insert page numbers into your assignment and use 3 cm margins. A high standard of work is always expected, so poorly presented work may be returned unmarked with a request to re-submit.

len2211384

1/9/2019 2:33:22 AM

Outstanding data and information provided to answer the questions; Independent and deep analysis, based on wide research; Issues and factors are presented and analyzed in a logical interconnectedness; Broad and credible sources of references in proper referencing style. Calculation and presentation are demonstrated clearly; Ratios, beta, expected returns are derived and justified with exemplary analysis that based on current issues and key factors; Implications and explanation are provided convincingly Consistent 2 year analysis and properly justified for inclusions or exclusions.

len2211384

1/9/2019 2:33:16 AM

Providing well established graphs of the chosen company’s share price, which shows obvious price trends in the given time frame Analyzing and comparing the chosen share price with All Ordinaries Index with exceptional good justification and data based analysis Outstanding research is conducted with wide based sources and proper referencing. Presenting a wide ranges of adequate recommendations that exemplarily supported by justification and analysis; Using data and information derived from financial analysis completed in an efficient, analytical and logical manner; Demonstrated a high level of understanding and skills of academic writing by means of criticism, logical argument, and interpretation of data and information.

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