Reference no: EM132311009 , Length: word count : 1000

Assessment  - Practical and Written Assessment

The task

The assignment is designed to assess your understanding of business finance theories and explores a number of areas within the course by applying your learning to a real company.

Through this project, you need to be able to demonstrate critical and analytical skills in academic writing, various research synthesising skills and be able to communicate clearly and effectively.

Please note this is a finance assignment for real business, so make sure you have the appropriate combination of quantitative and qualitative analysis.

Task requirements:

First select a company listed on the ASX. In selecting the ASX company the following needs to be observed:

1. the company must be currently listed on the ASX, not the suspended or delisted ones,

2. sufficient data for the company can be accessed (including financials for the last 3 years, the financials shall not be prior to 2015),

3. there are over 2,000 companies listed on the ASX, thus your graders expect that it is unlikely two groups will be investigating the same company. It is the graders expectations, that we see analysis of a variety of different companies from the different groups covering different dates.

The information for writing up the assignment can be sourced from:

1. the company's last 3 years' annual reports which will include the financial statements (use the consolidated balances in the financial reports) and the Chairman/Managing Director's report. This will provide the internal perspective of the company, and

2. media reports. This will provide the external perspective.

The selected key financial concepts and theories to relate to the financials of the chosen company shall include;

1. time value of money,

2. risk and return,

2. sources of finance: equity and debt,

3. dividend payout policy

Your group's report could be structured in a format that essentially addresses the following;

1. Introduction - Briefly explain the principal activities of the company, the profile of the industry/industries that the company operates in, the major competitors, the company goal etc.

2. Risk profile - Identify and discuss any systematic and unsystematic risks that the company faces.

3. Overall financial performance - Evaluate, interpret and criticize (if necessary) the company's financial performance over the review period.

4. Time value of money - Conduct research on the company and identify the link between the company's financial situation and the concept of time value of money, apply time value of money techniques learned in class to analyse the company's financial situation where is relevant and justify the company's financial decisions where is appropriate.

5. Sources of finance - Identify the company's sources, types, costs and composition of finance used to fund the operations and balance sheet. Analyse, comment and criticise (if warranted) the company's decision in adopting this financial mode.

6. Payout policy - Outline, analyse and interpret the company's payout policy over the review period. How is this payout policy compared (a) to that of its major competitors, and/or (b) to that of the industry (c) that of the general market, and/or (d) to all other forms of alternative investments available in the local or international economy?