Reference no: EM131320029
Instructions:
All assignments must be typed in a minimum 11 font size into the assignment template question sheet (available on Moodle). Additional pages may be added as needed.
There is no word limit, but be guided by the number of marks allocated for each task.
Ensure the use of correct grammar and spelling.
Show all calculations.
Include a reference list.
Adhere to LTM Policies and Procedures. Check latrobemelbourne.edu.au/policiesandprocedures
Case Study 1
Task 1 - Table 1
In Table 1, enter the date and last price of each stock, then calculate the market capitalisation, Current P/E, and Current Dividend Yield for each stock based on the last price. Show the formula used and your calculation (workings) for each stock. Round your answers to two decimal places.
Task 2 - Table 2
In Table 2, provide a definition explaining the information each Data Item provides you as a potential investor in the stock. [Provide a single agreed answer per team.]
Task 3 - Compare and Contrast
Compare and contrast the current market value of each stock.
Using the figures in Table 1, provide observations about the value of these stocks.(i.e. cheap or expensive?)
[Provide a single agreed answer per team.]
Case Study 2
Prices
Go to https://au.finance.yahoo.com and obtain the closing adjusted price for each of the six stocks on the 31st December for each year from 2009 to 2015. Enter these prices in the table below.
Dividends
Go to https://au.finance.yahoo.com and obtain the dividends paid by each of the six stocks for each year from 2010 to 2015. Enter these prices in the table below.
Task 1 - Holding Period Return
Write the equation for Holding Period Return then calculate the Holding Period Return for each company for each year from 2010 to 2015. Use the price and dividend information on Page 8. Round your final answer to two decimal places. Show your workings.
Task 2 - Expected Return
Write the equation for Expected Return then calculate the Expected Return for each company for each year from 2010 to 2015. Round your final answer to two decimal places. Show your workings.
Task 3 - Risk
Write down the equation for Risk then estimate the risk of each company based on your historical sample of returns. Round your final answer to two decimal places. Show your workings.
Task 4 - Five year total return to shareholders
Calculate the five-year Total Return to Shareholders of each company over the period from 31st December 2010 (Year 0) to 31st December 2015 (Year 5), using the formula below. Round your answer to two decimal places. Show your workings.
Task 5 - Compare and contrast
Compare and contrast the risk and return of each company. [Provide a single agreed answer per team.]
Case Study 3
Task 1a - Annual growth in EPS
From the Annual Report, find the Earnings per Share (EPS) for financial year 2010 and 2015. Enter the EPS into the table below.
Calculate the annual growth in Earnings per Share over the five years to 30th June 2015, using the following formula.
Task 1b - Calculating Ratios (Net Profit Margin)
Write the equation for Net Profit Margin then calculate the Net Profit Margin for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Task 1b - Calculating Ratios (Asset Turnover)
Write the equation for Asset Turnover then calculate the Asset Turnover for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Task 1b - Calculating Ratios (Leverage Ratio)
Write the equation for Leverage Ratio then calculate the Leverage Ratio for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Task 1b - Calculating Ratios (Net Debt to Equity Ratio)
Write the equation for Net Debt to Equity Ratio then calculate the Net Debt to Equity Ratio for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Task 1b - Calculating Ratios (Return on Equity [ROE])
Write the equation for Return on Equity then calculate the Return on Equity for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Task 2 - Change (loan & PPE)
Demonstrate and explain what would happen to the 2014/15 Return on Equity and the Net Debt to Equity Ratios if your allocated company just prior to the end of the 2015 financial year raised an additional $50 million loan from the bank, which it invested entirely in new plant and equipment. Assume that the immediate effect on sales and net profit was zero. Show your calculations of the ratios.
Task 2 - Change (loan & PPE - continued)
Task 3 - Change (new shares and PPE)
Demonstrate and explain what would happen to the 2014/15 Return on Equity and the Net Debt to Equity Ratios if your allocated company just prior to the end of the 2015 financial year instead of raising the additional loan raised an additional $50 million through the sale of new shares to the public, which it used to pay for the new plant and equipment. Assume that the immediate effect on sales and net profit was zero.
Task 4 - Compare and contrast financial performance
Using the ratios calculated in Task 1 of this case study, compare and contrast the financial performance of the companies over the past 5 years. [Provide a single agreed answer per team.]
Task 5 - Explain differences
Use your analysis of the financial performance of the companies over the past 5 years to explain any differences in the Total Return to Shareholder between the companies over the past 5 years, which you have calculated in Task 4 of Case Study 2. [Provide a single agreed answer per team.]
Attachment:- Business Accounting Assignment.rar