HC2091 Business Finance HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines Trimester T3 2019 Unit Code HC2091 Unit Title Business Finance Assessment Type 3...

HC2091 Business Finance

HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION

Assessment Details and Submission Guidelines
Trimester T3 2019
Unit Code HC2091
Unit Title Business Finance
Assessment Type 3
Assessment Title Group Assignment
Purpose of the
assessment (with ULO
Mapping)
Students are required to form a group of 3 to 4 members (Minimum of 3 and
Maximum of 4) 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).
Weight 25 % of the total assessments
Total Marks 25
Word limit Not more than 2500 words
Due Date Registration of groups and chosen companies: 5 pm Friday, Week 7
Final Submission of Group Assignment: Midnight (23:59 pm.) Sunday, Week 10
Late submission incurs penalties of 5 (five) % of the assessment value per calendar
day unless an extension and/or special consideration has been granted by the
lecturer prior to the assessment deadline.
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HC2091 Business Finance
Submission
Guidelines
• All work must be submitted on Blackboard by the due date along with a
completed Assignment Cover Page. 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.
• The assignment must be in MS Word format, no spacing, 12-pt Arial font and
2 cm margins on all four sides of your page with appropriate section headings
and page numbers. When you submit your assignment electronically, please
save the file as ‘Group Assignment- your 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.
• Reference sources must be cited in the text of the report, and listed
appropriately at the end in a reference list using Harvard referencing style.
Submitted work should be your original work showing your creativity.
Students need to read and understand the Holmes Academic Integrity Policy
efore they start any assessment. (Please refer section 4.3 Guide to
Academic Integrity p27 of the Holmes Student Handbook).
• Always keep an electronic copy until you have received the final grade for
the Unit. Please make sure that you submit the co
ect file. Any appeal
elating to submitting wrong files after the deadline will not be considered.
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HC2091 Business Finance
ASSIGNMENT SPECIFICATIONS
ASSIGNMENT TASK
This assignment task is a written report and analysis of the financial performance of one selected listed
company on the ASX in order to provide financial and investment advice to a prospective investor (No
estriction to choose one of the company which you used for your individual assignment).
This assignment requires to undertake an examination of a firm’s financial performance based on most recent
financial statements of the selected company mainly focusing on
 Liquidity (based on liquidity ratios)
 Capital Structure (based on capital structure ratios)
You are required to obtain the relevant information from chosen company annual reports and company web
site. You can access the company web site via www.asx.com.au.
To download the relevant please referee the Company code in ASX (see the following examples)
ABP Abacus Property Group
APZ Aspen Group Limited
AGL AGL Energy Limited
WES Wesfarmers Ltd
WOW Woolworths Group Ltd
Note: The above table gives you only examples and you are not asked to choose them for the analysis.
ASSIGNMENT STRUCTURE
Assignment structure should be as follows:
Title of the assignment
Example: Analysis of ABX Company Financial Performance
Group details and the contribution of each group member
You need to give full details of all the group members in your group including their names and student IDs.
Please make sure all the names written in the assignment are matched with the group created in
Blackboard.
To ensure that all students participate equitably in the group assignment and that students are responsible
for the academic integrity of all components of the assignment. You need to complete the following table
which identifies which student/students are responsible for the various sections of the assignment.
Assignment Section Student/Students
The above table needs to be completed and submitted with the assignment as it is a compulsory component
equired before any grading is undertaken.
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
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HC2091 Business Finance
CONTENT OF THE ASSIGNMENT
1. INTRODUCTION
The introduction should
iefly explain the purpose of the assignment, the selected company for analysis and
the type of analysis.

2. FINANCIAL PERFORMANCE ANALYSIS OF THE SELECTED COMPANY
a. Description of the company

Prepare a
ief description of the selected company (when they started, key milestones etc.), outlining
the core activities (major business, key products) competitive advantages, and the market in which it
operates (in which industry sector they are in ASZX, do they export their products and services or whether
they serve only the local market).

. Analysis of company net working capital position

Based on balance sheet information and the notes to the financial statements,
 Analyse the working capital position of the company over minimum of past 2 years (composition
of cu
ent assets and cu
ent liabilities, changes in CA and CL, any significant decision about
working capital management etc.)
 Calculate the networking capital and give your opinion on the net working capital position of the
company.

c. Calculation of cost of equity of the firm
Based on the data of just paid dividend (D0), cu
ent share price (collect this information from the annual
eport) and assumption that the company will maintain a constant dividend growth rate of 3% from now
on, calculate the cost of equity of your selected company, using constant dividend growth model.
d. Analysis of company liquidity and capital structure using liquidity and capital structure ratios
Using data from financial statements of your selected company, calculate the following ratios for past 4
years and present them using suitable charts. Discuss the implications of the identified trends for company
performance.
 Liquidity ratio (calculate minimum of 2 liquidity ratios over 4 years and analyse them using suitable
charts)
 Capital Structure ratio (calculate minimum of 2 capital structure ratios over 4 years and analyse them
using suitable charts)

3. Conclusion
Based on the analysis in section 2, provide
ief conclusion on the company financial performance and
make a recommendation for prospective investors.
4. Reference
Follow the Holmes reference guideline and give your reference details
Note: You need to show all the calculation in an appendix
All the graphs and tables should be co
ectly label
Graphs should have clear information (legends, axis title etc.)
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HC2091 Business Finance
Marking criteria
Marking criteria Weighting
1 Introduction 2 mark
2 Description of the company including their core business activities 4 marks
3 Analysis of company net working capital position
Comparison of working capital position
Calculation of net working capital over the past 2 years
4 marks
4 Calculation of cost of equity of the firm
Identification of co
ect information on dividend and cu
ent share price from
firm’s annual reports
Calculation of cost of equity based on identified information and the given
growth rate
4 marks
5 Analysis of company liquidity and capital structure using liquidity and capital
structure ratios
Calculation of liquidity ratios and presenting them using suitable graphs
Analysis of company liquidity position based on the above calculation
Calculation of capital structure ratios and presenting them using suitable
graphs
Analysis of company capital structure based on the above calculation
4 marks
6 Suitable recommendation and conclusion which is based on the overall
analysis
4 marks
7 Presentation, structure and academic writing 3 marks
Total marks 25 marks
TOTAL Weight 25 %
Assessment Feedback to the Student:
Page 6 of 7
HC2091 Business Finance
Marking Ru
ic

Content
Excellent Very Good Good Satisfactory Unsatisfactory
(80%-full marks
given)
(70-79% marks
given)
(61-69% marks given)
(50-60% marks
given)
(0-49% marks
given)
Introduction Outstanding
introduction
addressing the
key purpose of
the assignment
and the
selection of the
company.
Very Good
introduction
addressing the
key purpose of
the assignment
and the
selection of the
company.
Good introduction
addressing the key
purpose of the
assignment and the
selection of the
company.
Satisfactory
introduction
addressing the
key purpose of
the assignment
and the
selection of the
company.
No reasonable
explanation on
the purpose of
the assignment
or the company
selection.
Description of
the Company
Outstanding
analysis of the
selected
company,
targeting their
core business
and competitive
advantages.
Very good
analysis of the
selected
company,
targeting their
core business
and competitive
advantages.
Good analysis of the
selected company
targeting their core
usiness and
competitive
advantages.
Satisfactory
analysis of the
selected
company
targeting their
core business
and competitive
advantages.
No sufficient
analysis on the
selected
company
targeting their
core business
and competitive
advantages.
Analysis of
company net
working capital
position
Outstanding
analysis of
company net
working capital
with accurate
calculation and
suitable