Kent Institute Australia Pty. Ltd.
Assessment Brief XXXXXXXXXXABN XXXXXXXXXXCRICOS Code: 00161E RTO Code: 90458
Version 2: 11th October, 2019 XXXXXXXXXXPage 1 of 7 XXXXXXXXXXTEQSA Provider Number: PRV12051
ASSESSMENT BRIEF-ASSESSMENT 3
COURSE: Bachelor of Business / Bachelor of Accounting
Unit Code: B01BAVA320
Unit Title: Business Analysis and Valuation
Type of Assessment: Assessment 3 – Group assignment (3-4 students in a group)
Length/Duration:
2000 words (word count excluding executive summary, table of content,
eferences, appendix & tables)
Unit Learning Outcomes
addressed:
1) Understand the basic techniques of financial analysis and business
valuation.
2) Explain the linkage between industry analysis, strategic business
analysis, accounting analysis, financial analysis and prospective analysis.
3) Demonstrate inter-relationships between differing business disciplines:
financial accounting, financial management and strategic management.
4) Demonstrate work-ready disciplinary knowledge with the application
of all three major aspects of financial accounting, financial management and
strategic management.
Submission Date: Friday 4pm Week 10
Assessment Task:
The group (3-4 students) assignment is aimed at developing your practical skills
in financial statement analysis and valuation. It is also designed to enhance
teamwork, and develop your analytical and communication skills. Details of the
assignment will be discussed in week 2
Total Mark: 100 marks
Weighting: 20 %
Students are advised that submission of an Assessment Task past the due date without a formally
signed approved Assignment Extension Form (Kent Website MyKent Student Link> FORM – Assignment
Extension Application Form – Student Login Required) or previously approved application for other
extenuating circumstances impacting course of study, incurs a 5% penalty per calendar day,
calculated by deduction from the total mark.
For example. An Assessment Task marked out of 40 will incur a 2 mark penalty for each calendar day.
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XXXXXXXXXXKent Institute Australia Pty. Ltd.
Assessment Brief XXXXXXXXXXABN XXXXXXXXXXCRICOS Code: 00161E RTO Code: 90458
Version 2: 11th October, 2019 XXXXXXXXXXPage 2 of 7 XXXXXXXXXXTEQSA Provider Number: PRV12051
More information, please refer to (Kent Website MyKent Student Link> POLICY – Assessment Policy &
Procedures – Student Login Required)
ASSESSMENT DESCRIPTION:
Students are required to work in a group of 3-4 students in the performance of the written report. Students
must register for their group with the lecturer during the first three weeks of the trimester and are not allowed
to change group members afterward.
Topic for Group Written Report:
Every group for this assignment is required to select a COMPANY listed on the ASX but do not include a
- Bank
- Another type of Financial Services Company, OR a
- Trust
You are required to write a report to evaluate company’s performance as an external business analyst, by using
elevant resources (latest financial statements (annual reports), company’s website and relevant research
materials). The prescribed textbook of this unit should also be utilised.
• Hint: You have to be clever and pragmatic in selecting the company. It has to be large, substantial and
must have the available information for desk research. You are required to explore and collect information on
the company to complete this assignment.
Then, answer ALL the following questions in your written group report:
a) Company background and mission
) Common size & horizontal analysis of key financial statements. Various types of trend, bar & pie charts
can be useful in the presentation of the analysed results in your assessment submission. Students are expected
to make pertinent comments regarding the findings. Comments could be related to the causes and significance
of the increase or decrease of important variables such as PPE assets, intangibles, sales, EBIT, and net income as
well as explaining material changes in capital structure of the firm.
c) Cash Flow analysis. You would need to provide some commentary around what trends are emerging in
the part of the Cash Flow Statement called cash flow from operations as a lot of the good news and bad news of
a company is revealed there. Investors often look at this section before they bother with an income statement.
1. You may want to take cash flow analysis further by including Free Cash flow to the Firm (FCFF) and Free
Cash flow to Equity (FCFE) numbers. Have a look at Appendix A.
2. If you look at page 248 of your textbook, you will see Palepu refe
ing to FCFF as free cash flow to debt
and equity claim holders. He articulates FCFE as free cash flow to equity claim holders.
d) Liquidity Analysis. This would entail as a minimum a cu
ent ratio and a liquid ratio together with
elevant commentary on receivables and payables and stock management, etc.
e) Income Analysis. This would include an EBIT margin analysis, a gross profit margin analysis (if
applicable), net income analysis and EPS. You would also be advised to incorporate ROA analysis. ROA analysis
can take many forms.
f) Capital Structure Analysis (and Solvency). This is all about ascertaining the level to which the company
uses financial leverage to finance its operations and activities. The analysis should cover bonds, other forms of
debt, hy
id instruments such as preference shares and convertible notes as well as finance (or capital) leases.
g) Coverage (and Solvency). These ratios examine the extent a company can cover its interest payments
and other fixed financial commitments e.g. lease payments.
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XXXXXXXXXXKent Institute Australia Pty. Ltd.
Assessment Brief XXXXXXXXXXABN XXXXXXXXXXCRICOS Code: 00161E RTO Code: 90458
Version 2: 11th October, 2019 XXXXXXXXXXPage 3 of 7 XXXXXXXXXXTEQSA Provider Number: PRV12051
h) Growth