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Group Assignment [Groups can be 1 or 2 person Groups] Due Week 8, Monday 23 April 2018 at 11.45pm This guide is split into five Sections. 1. Overview 2. Submission Details and Issues that will Impact...

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Group Assignment [Groups can be 1 or 2 person Groups]
Due Week 8, Monday 23 April 2018 at 11.45pm
This guide is split into five Sections.
1. Overview
2. Submission Details and Issues that will Impact on Your Mark
3. Assignment Questions and Marking Ru
ic
4. Mark sheet
5. APA Quick Reference Guide
Section 1: Overview
What is a Group?
· For campus students, the group means 1 or 2 students.
· For distant learning (FLEX) students, while a group of 1 is likely to be more practical groups of 2 are optional.
· Important Note 1: Students working as a group, only one member of the group will submit the assignment online by uploading it in Moodle.
The Task
There are 4 calculation-based questions and 2 theory questions assessing work covered in Weeks 1 to 5. All questions are from the prescribed textbook, Managerial Finance – Principles and Applications by Titman et al. (2016)
The Mark sheet
· The Mark sheet of this assignment is not your coversheet. It merely shows you how the marks will be allocated. Your grader will provide your marks in a mark sheet when they provide feedback.
Marks are awarded for:
· Answers to calculation questions that include well-presented tables, accurate calculations, worksheets and related formulae.
· Answers to theory questions should be around 450 words FOR EACH THEORY QUESTION [excluding in-text referencing, reference list and appendix items] and show supporting examples, diagrams and figures.
· Demonstrations of using your initiative and supporting your answers with interesting references to contemporary issues from newspapers, journals, professional publications, web resources i.e. extracts from podcasts, financial institutional websites etc.
· Proper referencing of all content including figures, tables and na
ative using APA Reference system.
· Presentation must be 1.5 spacing, 14 pt Bold for Section Headings, 12 pt. for content and Arial, Times Roman or Cali
i Font.
References
TITMAN, S., MARTIN, T., KEOWN, A. J. & MARTIN, J. D XXXXXXXXXXFinancial management: Principles and Applications, Melbourne, Pearson Australia
Section 2: Submission Details
This online submission MUST BE submitted as a word document. PDF submissions will not be accepted.
Issues that will affect your marks include:
1. Make sure you create your own cover sheet with the names of the students in the group clearly indicated. Please do not include the marking criteria or ru
ics or marking sheet in your assessment. Your grader will include a separate feedback and marking sheet after they have graded your assessment in Moodle.
2. Where copying from other sources results in high percentage similarity, marks will be deducted as shown on the mark-sheet. Therefore, proper use of in-text referencing is important. Avoid direct quotes.
Turnitin will be used to check percentage similarity.
Do not copy the questions from the textbook, as this will increase your percentage similarity.
Under extreme circumstances where high % similarity indicates copying from written works of other students in CQU, other universities or any other institutions world-wide, the assignment will be reviewed by the academic misconduct board. If percentage similarity exceeds 20%, marks will be deducted based on a progressive scale as determined by the course co-ordinator.
3. Marks for each question are noted in Section 3 and totals 100 marks.
The assessment is worth 20% total assessment grade.
The final grade with criteria
u
ic and marking criteria will be recorded on Moodle as a percentage of 20%.
4. Penalty for late submission is 5% per calendar day including Saturday and Sunday.
FINC20018 T1 2018: Assessment 1
Section 4: Assignment Questions and Marking Criteria / Ru
ic
Question 1 [Theory and Calculation]: Understanding Financial Statements [Chapter 3 Study Question 3.8 and Study Problem 3.16]
    
    Develop your responses by reviewing peer-reviewed articles, professional publications and/or credible texts.
    Mark
    Part 1
    The cash flow statement is one of four basic financial statements. Define the objective in preparing this statement.
    15 Marks
    Part 2
    Discuss some of the types of questions that can be addressed using its contents.
    
    Part 3
    Analysing the quality of earnings and sustainability of capital expenditure. Look up the statement of cash flows for Woodside Petroleum Ltd (WPL.AX) and Origin Energy (ORG), two of Australia’s largest oil companies, using Yahoo!Finance! OR the Australian Stock Exchange website OR the websites of the companies themselves.
a) Compute the quality of earnings ratio for both firms and all three years of data provided
) Compare the quality of earnings ratio for the two firms. For which firm do you feel most comfortable about the reported earnings? Explain.
c) Compute the capital acquisitions ratios for the latest three years for both firms.
d) Compare Woodside’s and Origin Energy’s abilities to use operating cash flow to finance their capital expenditure. Which firm has relied more on the capital markets.
    
    Criteria
    
Measures of Excellence
    HD
    D
    C
    P
    F
    US
    Organisation, structure and presentation
    The introduction sentence is clear and introduces the key concepts well. The ideas are a
anged in an extremely logical, structured and coherent manner. Transition statements are clearly used as a guide from one section to the next. Arguments are logical, clear and convincing establishing clear links between the literature, the argument, findings and conclusions.
Favourable attention has also been given to present material that supports the discussions namely comparison of ideas, tables, and figures. Quality of writing at a very high standard. Paragraphs are cohesive. Sections flow. The use of headings and sub-headings is effective and enhances readability. Co
ect grammar, spelling and punctuation. Total response does not exceed 450 words [excluding references, tables or figures].
    5
    4
    3
    2
    1
    0
    Content / Knowledge
    There is an excellent standard of analysis and appreciation and definitions of concepts. In particular, the answer demonstrates a balanced and insightful level of detailed knowledge of core concepts and is supported by research and examples.
    5
    4
    3
    2
    1
    0
    Evidence / Support / Referencing

    The student’s arguments are well researched and articulated.
Utilises cu
ent, appropriate and credible sources which strongly support the student’s’ argument and explanations. Referencing accurate – per APA Reference Guide.
    5
    4
    3
    2
    1
    0
Question 2 [Calculation-based]: The Income Statement [Chapter 3 Applying the theory]
(Refer to Example on page 46 of Textbook)
    
    Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings.
    Mark
    Part 1
    CQU Oil Limited is a an oil wholesale company that had:
· sales last year of $2.5 million;
· cost of goods sold of $700,000;
· paid interest of $200,000;
· cash operating expenses of $150,000;
· Depreciation expense amounting to $150,000
· a tax liability equal to 30% of the firm’s taxable income.
a. Construct an Income Statement with the above data.
. Determine CQU Oil’s taxable income and tax payable for the year.
c. Determine the total amount of:
i. fully franked dividends
ai. imputation credits that the company is able to declare from its past year’s results.
d. Analyse the data and outcome. What information can we derive from CQU Oil’s Income Statement?
    15 Marks
    
Criteria
    
Measures of Excellence
    HD
    D
    C
    P
    F
    US
    Content / Knowledge
    There is an excellent standard of analysis and the responses demonstrate an accurate appreciation of the key concepts, principles and / or formulae.
Total response does not exceed 450 words [excluding references, tables or figures].
    5
    4
    3
    2
    1
    0
    Evidence / Support / Referencing

    The source of formulae, examples, figures and tables have been appropriately referenced. Referencing accurate – per APA Reference Guide.
    5
    4
    3
    2
    1
    0
    Presentation
    Responses have been presented in a superior manner i.e. comparisons, tables, and figures are neat, separators have been used to present numbers, workings are shown in a clear manner, headings have been used to categorise elements of the answers. Co
ect grammar, spelling and punctuation.
    5
    4
    3
    2
    1
    0
Question 3: [Calculation-based] Financial Analysis [Chapter 4 Mini-case]
    
    Use an Excel spreadsheet and/or tables to present your calculations. Show all workings.
    Mark
    Part 1
    Mini-case: Obtain the most recent financial statements for Wesfarmers Ltd (WES) and Woolworths Ltd (WOW) by downloading their most recent annual reports from the following websites www.westfarmers.com.au and www.woolworthslimited.com.au or the ASX website www.asx.com.au. Obtain the cu
ent share prices for these companies from Yahoo! Finance! (Don’t forget to put ‘.AX’ after the stock codes shown above) OR the Australian Stock Exchange website OR the websites of the companies themselves. With this information, answer the following questions.
a. Compute the financial ratios for both firms for the most recent year.
. Evaluate the relative performance of the two firms in the following areas:
i. Liquidity
ii. Asset management efficiency
iii. Financing practices (capital structure)
iv. Profitability
c. What is each firm’s cu
ent price-earnings ratio and market-to-book ratio? What do these ratios tell you about how investors value these two firms’ future prospects?
    15 Marks
    
Criteria
    
Measures of Excellence
    HD
    D
    C
    P
    F
    US
    Content / Knowledge
    There is an excellent standard of analysis and the responses demonstrate an accurate appreciation of the key concepts, principles and / or formulae.
Total response does not exceed 450 words [excluding references, tables or figures].
    5
    4
    3
    2
    1
    0
    Evidence / Support / Referencing
    The source of formulae, examples, figures and tables have been appropriately referenced. Referencing accurate – per APA Reference Guide.
    5
    4
    3
    2
    1
    0
    Presentation
    Responses have been presented in a superior manner i.e. comparisons, tables, and figures are neat, separators have been used to present numbers, workings are shown in a clear manner, headings have been used to categorise elements of the answers. Co
ect grammar, spelling and punctuation.
    5
    4
    3
    2
    1
    0
Question 4: [Calculation-based and Theory] Time Value of Money [Chapter 5 Mini-case]
    
    Use an Excel spreadsheet and/or tables to present your calculations. Show all workings.
    Mark
    Part 1
    Mini-case: Emily Dao, 27, just received a promotion at work that increased her annual salary to $74,000. In addition to standard compulsory employer superannuation, she is eligible to participate in her employer’s retirement savings plan, to which the employer matches, dollar for dollar, worker’s compensation contribution of up to 5% of salary. However, Emily wants to buy a new $50,000 car in three years, and she wants to have enough money to make a $14,000 deposit on the car and finance the balance. Fortunately, she expects a sizeable
Answered Same Day May 07, 2020 FINC20018 Central Queensland University

Solution

Abr Writing answered on May 10 2020
124 Votes
Part 1
Stock: Acap resources
    Main assumptions
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Weighted Average Cost of Capital
     
    10.0%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Perpetual Growth Rate
     
    1.5%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flow
     
     
    (4)
    0
    0
    0
    0
    0
    0
    0
    1
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flows present value
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    AUD M
     
     
    2017
    2018
    2019
    2020
    2021
    2022
    2023
     
    Normatif
     
     
     
     
     
     
     
     
     
     
     
     
    Discounting facto
     
     
    0.91
    0.83
    0.75
    0.68
    0.62
    0.56
    0.51
     
     
    Free cash flow present value
     
     
    (4)
    0
    0
    0
    0
    0
    0
     
     
    Terminal value
     
     
     
     
     
     
     
     
    3
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Total present value
     
    0.80
     
     
     
     
     
     
     
     
     
    Stock price
     
    0.06
     
     
     
     
     
     
     
     
     
Stock: Abilene energy
    Main assumptions
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Weighted Average Cost of Capital
     
    10.0%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Perpetual Growth Rate
     
    1.5%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flow
     
     
    (1)
    0
    0
    0
    0
    0
    0
    0
    0
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flows present value
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    AUD M
     
     
    2017
    2018
    2019
    2020
    2021
    2022
    2023
     
    Normatif
     
     
     
     
     
     
     
     
     
     
     
     
    Discounting facto
     
     
    0.91
    0.83
    0.75
    0.68
    0.62
    0.56
    0.51
     
     
    Free cash flow present value
     
     
    (1)
    0
    0
    0
    0
    0
    0
     
     
    Terminal value
     
     
     
     
     
     
     
     
    1
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Total present value
     
    0.15
     
     
     
     
     
     
     
     
     
    Present stock price
     
    0.007
     
     
     
     
     
     
     
     
     
Stock: AJC energy
    Main assumptions
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Weighted Average Cost of Capital
     
    10.0%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Perpetual Growth Rate
     
    1.5%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flow
     
     
    (1)
    0
    0
    0
    0
    0
    0
    0
    0
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flows present value
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    AUD M
     
     
    2017
    2018
    2019
    2020
    2021
    2022
    2023
     
    Normatif
     
     
     
     
     
     
     
     
     
     
     
     
    Discounting facto
     
     
    0.91
    0.83
    0.75
    0.68
    0.62
    0.56
    0.51
     
     
    Free cash flow present value
     
     
    (1)
    0
    0
    0
    0
    0
    0
     
     
    Terminal value
     
     
     
     
     
     
     
     
    1
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Total present value
     
    0.53
     
     
     
     
     
     
     
     
     
    Present stock price
     
    0.4
     
     
     
     
     
     
     
     
     
Stock: Altium tech
    Main assumptions
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Weighted Average Cost of Capital
     
    10.0%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Perpetual Growth Rate
     
    1.5%
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flow
     
     
    13
    14
    15
    17
    18
    20
    22
    24
    27
    Shares out standing
     
     
    120
    120
    120
    120
    120
    120
    120
    120
    120
    Free cash flow
     
     
    0
    0
    0
    0
    0
    0
    0
    0
    0
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Free cash flows present value
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    AUD M
     
     
    2017
    2018
    2019
    2020
    2021
    2022
    2023
     
    Normatif
     
     
     
     
     
     
     
     
     
     
     
     
    Discounting...
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