Assessment Brief: BUS1007/SBM3207
Trimester 3, 2021
Assessment Overview
Assessment Task Type Weight Length Due ULOs
Assessed
Assessment 1: Quiz
Four quizzes covering topic material
from Week 1 to Week 7
Individual
Invigilated
40% 30 mins each
quiz, total
120 mins
(equiv. 2000
words)
Week 3
Week 5
Week 7
Week 9
During
Workshop
[ULO1],
[ULO2],
[ULO3],
[ULO4]
Assessment 2: Case studies
This is a non-invigilated group
(maximum two) assessment. Please
see below for detailed guidelines.
Group
30% 2000 +/-
10% words
Monday
29 Nov 2021
(beginning of
Week 9)
[ULO1],
[ULO2],
[ULO3],
[ULO4],
Assessment 3: Final Exam
The student is required to sit a two hour
(120min) final exam. The contents of the
exam may consist of practical
applications, case studies and problem-
solving questions based on all topics
covered in the unit.
Individual
Invigilated
30% 120 mins
(equiv. 2000
words)
Week 12 [ULO1],
[ULO2],
[ULO3],
[ULO4],
[ULO5]
equiv. – equivalent word count based on the Assessment Load Equivalence Guide. It means this assessment is
equivalent to the normally expected time requirement for a written submission containing the specified
number of words.
Assessment 1: Quiz
Due date: Week 3, Week 5, Week 7 and Week 9 (during Workshop)
Group/individual: Individual
Word count/Time provided: 30 min each, Total 120 min. (equiv. 2000 words)
Weighting: 40%
Unit Learning Outcomes: ULO1, ULO2, ULO3, ULO4
Assessment 1 Detail
Assessment 1 consists of four quizzes. They will assess your knowledge of key content areas (Weeks 1
to 7 contents) and will identify further support needs. To successfully complete the quizzes, please
study the material provided (lecture slides, tutorials, and reading materials), attend the classes,
engage in the unit’s activities and participate in the discussion forums. By completing this
assessment successfully, you will be able to understand the finance function in contemporary
usiness settings, the Australian financial system and the key institutions and regulatory bodies
that operate within it, basic financial mathematics to understand financial products.
Assessment 1 Marking Criteria and Ru
ic
Marking Information: Each quiz will contribute 10% towards the total marks of this subject (total
4 x 10% = 40%).
Marking
Criteria
Not
Satisfactory
(0-49% of the
criterion mark)
Satisfactory
(50-64% of the
criterion mark)
Good
(65-74% of the
criterion mark)
Very Good
(75-84% of the
criterion mark)
Excellent
(85-100% of the
criterion mark)
Identify the
elevant financial
concepts and
principles, select
appropriate
methods, and use
them to a
ive at
the co
ect
solution.
Answer reflects
lack of basic
understanding of
elevant
principles.
Focuses on
tangential rather
than key issues.
Answer reflects
some basic
understanding of
elevant
principles. Uses
some appropriate
information
co
ectly.
Answer reflects
good
understanding of
elevant
principles.
Applies co
ect
and appropriate
procedures to
a
ive at the
co
ect solution.
Answer reflects
clear
understanding of
elevant
principles. Mainly
focuses on key
issues.
Quantitative and
qualitative
analysis is strong.
Principles are
applied in the
appropriate
manner to a
ive
at the co
ect
solution. The use
of relevant
principles shows
creativity and
imagination.
Focuses on key
issues and avoids
or dismisses
tangential issues.
Quantitative and
qualitative
analysis
persuasively
supports the
convincing
ecommendations
and conclusions.
Assessment 2: Case Studies
Due date: Monday 29 November 2021 (beginning of Week 9)
Group/individual: Group (maximum two students per group)
Word count/Time provided: 2000 +/- 10% words
Weighting: 30%
Unit Learning Outcomes: ULO1, ULO2, ULO3, ULO4
Assessment 2 Detail
Assessment 2 consists of four case studies where you will apply financial concepts and theories into real
life situations. These case studies will assess your knowledge of key content areas (Week 1 to 6 contents) and
will identify further support needs. To successfully complete this assessment please study the material
provided (lecture slides, tutorials, and reading materials), attend the classes, engage in the unit’s
activities and participate in the discussion forums.
Case Study 1 XXXXXXXXXX15 marks
Jane Fisher was a sole trader selling a range of hair care products to various hair dressing saloons for
five years. However, in 2020 COVID-19 pandemic induced prolonged and frequent lockdowns
esulted in cancellation of most of her orders and she had to shut down her business. After a six
month search she joined Axis Ltd as a procurement manager. She sought the job in Axis as she has
een a shareholder of Axis Ltd for 7 years and did not sell those shares even when she had to close
her business.
Analyse the two different types of business in this case study. Compare and contrast their
advantages and disadvantages with examples.
Case Study 2 XXXXXXXXXX15 marks
Rory Williams is an independent management consultant with a portfolio of clients. One of his long
term clients John Hawk has recently introduced Rory to Melody Malone who runs a secretarial
service and has offered Rory a long term contract through which Rory expects to generate the
following stream of cash flows. Cash flows will occur at the end of the nominated years.
Cash Flows
Year 0
Year 1 +$ 5,000
Year 2
Year 3 +$ 5,000
Year 4 – $ 2,500
Year 5 +$ 2,700
Year 6
Year 7
Year 8 $ 8,000
Year 9
Year 10 $20,000
Rory expects the market interest rates will be 2.5% p.a. for the next 5 years, then it will increase to
5% p.a. for the following three years (years 6 – 8) and will increase again in years 9 – 10 to 6% p.a.
Assuming Rory’s expectations regarding cash flows and interest rates are co
ect, calculate the
present value today and future value in 10 years time of all these cash flows. (Show all calculations
and show answers co
ect to the nearer cent.)
Case Study 3 XXXXXXXXXX25 marks
Tim Shaw is a portfolio manager of a large fund. It is December 2021 and Tim intends to sell two
onds he holds. Each bond has a face value of $100,000, a coupon rate of 8% p.a., paid half-yearly,
and a yield to maturity of 10% p.a. The first bond will mature in three years and the second bond will
mature in 5 years. With the funds Tim intends to buy Sapphire Ltd shares. Sapphire Ltd shares just
paid a dividend of $1.20 per share in December 2021. Tim believes the dividend is expected to
increase by 20% in December 2022, 15% in December 2023, 10% in December 2024, and thereafter
y 5% per year forever from December 2025 onwards. Tim requires a 12% p.a. return on Sapphire
Ltd shares.
If Tim sells both bonds and use the funds to buy Sapphire Ltd shares, how many shares he can buy?
(Show all calculations to two decimal places, show final answer co
ect to whole number.)
Case Study 4 XXXXXXXXXX35 marks
Below is the monthly share price data for Afterpay Limited (ASX code APT.AX) for 2020 (Source:
https:
finance.yahoo.com)
Month Open $ Close $
Jan XXXXXXXXXX
Feb XXXXXXXXXX
Mar XXXXXXXXXX
Apr XXXXXXXXXX
May XXXXXXXXXX
June XXXXXXXXXX
July XXXXXXXXXX
Aug XXXXXXXXXX
Sep XXXXXXXXXX
Oct XXXXXXXXXX
Nov XXXXXXXXXX
Dec XXXXXXXXXX
Afterpay Limited did not pay any dividend in 2020.
a. Calculate the monthly percentage returns for APT for XXXXXXXXXXShow all calculations, show
answers as percentage co
ect to two decimal places.)
. Calculate the risk measured by the standard deviation for APT. (Show all calculations, show
answer as a percentage co
ect to two decimal places.)
c. If the standard deviation for the market is 8.02%, how does this compare with APT’s standard
deviation calculated in part b? Explain your conclusions.
Please note: Another 10 marks are allocated for formatting and references. Details are given in the
marking criteria and ru
ic on the following page.
https:
finance.yahoo.com
Assessments 2 Marking Criteria and Ru
ic
The