HI5002: Finance for Business, Assignment, Trim 3, 2017
XXXXXXXXXX1
HI5002: Finance for Business
Assignment
(Case Study)
Trimester 3, 2017
Unit Code: HI5002
Unit Name: Finance for Business
Due: XXXXXXXXXXWeek 11
Value: XXXXXXXXXX %
Venue: XXXXXXXXXXHOLMES Institute
Description
Students are required to study, undertake research, analyse and conduct academic work
within the areas of business finance covered in learning materials 1 to 10 inclusive. The
assignment should examine the main issues, including underlying theories, implement
performance measures used and explain the firm financial performance. You are
strongly advised to reference professional websites, journal articles and text books in
this assignment (case study).
Required:
This assessment task is a written report and analysis of the financial performance of a
selected company in order to provide financial advice to a wealthy investor. It needs to
e completed individually. It will be based on financial reports of a listed company on
the ASX (chosen by the lecturer). This assignment requires students to undertake a
comprehensive examination of a firm’s financial performance and must be submitted by
Week 11 of Trimester Three.
Further details will be given later in the semester.
Key elements or milestones will need to be completed in stages throughout the semester
as per the schedule provided below. Discussions will be conducted and suggestions will
e provided for each stage so that you can then amend subsequent sections if needed.
MARKS will be subtracted for LATE SUBMISSIONS.
HI5002: Finance for Business, Assignment, Trim 3, 2017
XXXXXXXXXX2
QUESTIONS
You are an investment adviser, working to build a foundation of wealth for your clients. One of
your wealthiest clients already has a diversified portfolio, which includes managed funds,
property; cash/fixed interest and a few direct share investments in Australia and around the
world. The investor wishes to expand his/her portfolio and is considering your company’s share
to add to the portfolio. (The investor has an extra $10 million that wishes to invest into your
company). The company which you will examine is allocated by your lecturer.
The assignment is a written comprehensive report and analysis of the firms’ financial
performance (including referencing).
100 marks
STAGES TO BE COMPLETED
Name of the student and a “business name” under which you will be providing your
financial advisory services.
The name of the company that you will investigate/analyse for the purposes of possible
ecommendation to your client. A company (listed on the ASX) will be allocated to each
student by the lecturer. The students should obtain all information about the selected
company from this web site: www.asx.com.au
You MUST:
Obtain a copy of the last Financial Statements including Income Statements, Balance
Sheets, Statement of Changes in Equity, Cash Flows Statements and Notes. You can
downloaded these documents from the suggested web site using the firm’s code
(example, BHP- for BHP Billiton Company, etc).
(Part 1 to 10)
1
A description of the company
(Part 1)
2 Identify your company ( in terms of the ownership-governance structure)
(Part 2 i & ii)
3 Calculation of Performance Ratios
XXXXXXXXXXPart 3 i, ii and iii)
4 Two graphs from www.asx.com.au with the description of results
XXXXXXXXXXPart 4 i & ii)
5
Identify any significant factors which may have influenced the share price of your
company.
XXXXXXXXXXPart 5)
6
Calculation of ’ beta values and expected Rates of Return using the CAPM
XXXXXXXXXXPart 6 i, ii & iii)
7 Weighted Average Cost of Capital (WACC)
(Part 7 i & ii)
8
Using the debt ratios for your company over the past two years, emphasise any
improvement towards the maintenance of a prefe
ed optimal capital structure.
(Part 8 i & ii)
9 Dividend Policy
(Part 9)
10
Letter Recommendation
(Part 10)
11
Formal structure
(Part 1 to 11)
Final Submission of Complete Assignment on Blackboard
(Week 11)
http:
www.asx.com.au
http:
www.asx.com.au
HI5002: Finance for Business, Assignment, Trim 3, 2017
XXXXXXXXXX3
You are required to do the following tasks:
1. Prepare a
ief description of the company, outlining the core activities, the market(s)
in which it operates within and any factors in the companies’ history which you
consider help present a “picture” of your company.
4 marks
2. Specify ownership-governance structure of the company:
i) Name the main substantial shareholders:
With higher than 20.00% of shareholdings. Based on this argument
you should classify a firm as a family or non-family company, and
With higher than 5.00% of shareholdings.
3 marks
ii) Name the main people involved in the firm governance:
The Chairman
Board members
CEO.
o Whether any of these people have the same surname as any of
substantial shareholders (>20% share capital). If yes- you could use
this as an argument for the presence of an owner or family member(s)
in the firm’s governance.
o Whether any of shareholders with more than 5% share capital are
involved in firm governance.
3 marks
3. Calculate the following key ratios for your selected company for the past 4 years.
Annual reports are accessible via company websites (show all working out):
i) Return on Assets (ROA) = XXXXXXXXXXNPAT / Total Assets)
Return on Equity (ROE) = (Net Profit After Tax / Ordinary Equity)
Debt Ratio = XXXXXXXXXXTotal Liabilities / Total Assets