HI5002: Finance for Business, Assignment, 2018
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HI5002: Finance for Business
Group Assignment
(Case Study)
Trimester 2018
Unit Code: HI5002
Unit Name: Finance for Business XXXXXXXXXXDue Date: XXXXXXXXXXFriday 17:00, Week 10
Value: XXXXXXXXXX %
Venue: XXXXXXXXXXHOLMES Institute
1 group: Max 4 students
Length: Max 3000 words
Description
Students are required to form a group consisting of 4 students (max). The group is
equired to study, undertake research, analyze 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. Your group is
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 will be
ased on financial reports of a listed company on the ASX . This assignment requires your
group to undertake a comprehensive examination of a firm’s financial performance and
must be submitted by Week 11
HI5002: Finance for Business, Assignment, 2018
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STAGES TO BE COMPLETED
Create your group’s “business name” under which your group will be providing the
financial advisory services.
Choose a company that your group will investigate/analyse for the purposes of possible
ecommendation to your client. The group should obtain all information about the selected
company from this web site: www.asx.com.au
Please note: Each group can only choose 1 company and once the company has been chosen,
the other group can not choose the same company (in other words, the latter group has to
choose another company that hasn’t been chosen by other groups). First come first served
ule applies here, it means let your lecturer knows asap which companies your group want
to discuss, your lecturer can check whether your chosen companies are still available or not
and finally register your chosen company with your Lecture
Your group MUST:
Obtain a copy of the last Financial Statements including Income Statements, Balance
Sheets, Statement of Changes in Equity, Cash Flows Statements and Notes. Your group
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
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
HI5002: Finance for Business, Assignment, 2018
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QUESTIONS
Your group is 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 assignment is a written comprehensive report and analysis of the firms’ financial
performance (including referencing).
100 marks
Your group is 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 Fundamental Ratios for your selected company for the past 2
years. Annual reports are accessible via company websites:
- Short term solvency (Liquidity ratios)
- Long term solvency (Financial Leverage ratios)
- Asset utilization (efficiency or turnover ratios)
- Profitability ratios
- Market value ratios
20 marks
4. Using the information from the ASX website: www.asx.com.au you must complete the
following tasks:
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
http:
www.asx.com.au
HI5002: Finance for Business, Assignment, 2018