Reference no: EM132672407

FINA6000 Managing Finance - Laureate International Universities

Assessment Presentation

Learning Outcome 1: Critically analyse goals of financial management within an organisation and explain how a good corporate governance underpins pursuance of such goals.

Learning Outcome 2: Analyse financial information and evaluate financial performance of a business.

Learning Outcome 3: Apply time value of money to the valuation of a variety of cash flows, securities and projects leading to sound investment and financing decisions.

Learning Outcome 4: Analyse risk and return associated with investments.

Task Summary
Students are expected to utilise publicly available financial market information, evaluate financial performance of selected companies listed on the Australian Securities Exchange and apply the knowledge of financial statement analysis and risk and return when making investment decisions.
Students are expected to prepare 10 -12 ppt slides and record a 15 minutes presentation addressing the assessment tasks.

Context:
Since the beginning of 2020, global economies have continued to be dogged by the COVID-19 pandemic. There is still no end in sight to the ravages this pandemic continues to make on the economic and financial well being of global economies and companies. Despite this background, not all sectors have been adversely affected. Commentators suggest that some sectors such as energy, financial, healthcare, utilities, telecommunication, retail and information technology have weathered the storm. It is therefore important to verify the impact by conducting some comparative analysis of the two companies from the above sectors allocated to you. Note that the companies that you will use in this assessment will be the same as the ones allocated to you for Assessment 3. The only difference is that in assessment 2 you will work on your own to prepare the powerpoint slides and video whereas in Assessment 3 you will work with your group members. Your Faciliator is the one in charge of assigning companies to you. Do not pick companies by yourself. The table with the companies and their sectors is at the bottom of this Assessment brief.

This assessment aims at:

• Testing the students' ability to perform financial statement analysis using profitability, capital structure and investment ratios
• Testing the students' understanding of the concepts of risk and return and their ability to evaluate how the stock markets and stocks (shares) have performed against the backdrop of COVID-19.
• Assessing students's ability to prepare and make a professional business presentation.

Instructions:
To complete this assessment task you must consider the following:

• Collect information from the five latest annual reports of the two assigned companies for the period up to 31 December 2019. The information should allow you to calculate profitability, investment and capital structure ratios which would be useful for both Assessment 2 and Assessment 3. Of particular importance is collecting information that would permit the calculation of the following ratios: Return on Equity (ROE), Return on Assets (ROA), Debt to equity ratio, Debt ratio, Earnings per share (EPS), Dividend per share (DPS), Dividend Payout ratio and market to book value ratio (The market values are collected on the same date reported in each Balance Sheet).
• For the period 2 January 2020 to 30 September 2020, collect daily closing stock prices of the two companies. In addition collect information on the ASX300, the index representing the top 300 companies by market capitalisation listed on the Australian Securities Exchange (ASX).

Using the data/information collected above, together with any other relevant information, perform some analysis that would allow you to answer the following questions:

(a) Over the latest 5 year period based on the companies' financial statements, which of the two companies has displayed higher profitability? Justify this using Return on Equity (ROE) and Return on Assets (ROA) values.

(b) Which company has a more stable capital structure based the calculated debt ratios?

(c) Which of the two companies would you invest in if you were only basing your decision on the calculated investment ratios.

(d) Determine the mean daily returns using the Arithmetic Mean, Geometric mean of the two stocks and the respective stock market index over the period 2 January 2020 to 30 Spetember 2020.

(e) Using the standard deviation as a measure of risk and calculating risk adjusted returns for the companies and the index, determine which of the two companies' shares you would invest in.

(f) Discuss four critical success factors for each of the companies that are important in the quest of the financial managers to maximise shareholder value. Justify this with information from the company's reports, commentaries from financial analysts or any other relevant information.

Consider the following as you work on this assignment:

• Prepare a minimum of 10 slides (maximum 12 slides) to be presented in no more than 10 minutes.
• Record a 15-minute video in which the presenter's face is seen. You are recommended
to use zoom, however, you can use any other recording platform.
• The slides are to be submitted via Blackboard. You should also submit the EXCEL document with your calculations. It would be better to embed the EXCEL workings into the Powerpoint slides. Instructions for embedding the EXCEL file are in Assessment 3
• Remember to cite the sources of information used. Put the list of references in the last slide of your presentation
• Students will be assessed on how well they address the key questions that show the knowledge of financial statement analysis, risk and return and and stocks . Ability to apply the knowledge to making a sound investment decision to purchase stocks will also be evaluated. The evaluation will be based on how well they present the information. the presentation.

Attachment:- Managing Finance.rar