LOs Criteria Standards Below Expectations Meets Expectations Exceeds Expectations Level 1 (NN) Level 2 (PA) Level 3 (CR) Level 4 (DI) Level 5 (HD) LO2 Apply risk and return relationships to the valuation of financial assets Displays a poor understanding of risk and return relationships to the valuation of financial assets. Fails to address the question posed. Arguments are implausible and unsubstantiated. Limited and/or irrelevant research. Displays some basic understanding of risk and return relationships to the valuation of financial assets Barely answers the question posed. Arguments are generally plausible with some evidence. Basic research Displays above average understanding of risk and return relationships to the valuation of financial assets Provides above-average answer to the question posed. Arguments with reasonable support. Adequate research Displays high level understanding of risk and return relationships to the valuation of financial assets Demonstrates high standard of insight and originality.

C Cost of capital & capital structure Determine the cost of capital for each source of finance as well as the weighted average cost of capital for 2016. What does the WACC suggest for the company? Provide an evaluation of the company’s capital structure policy and recommend an appropriate capital structure policy for the company. Do you find the capital structure risky for the company? Justify your answer. 5 D Dividend policy Analyse the company’s dividend practices and the use of internal funds over the 2007-2016 period. Describe the dividend pattern and policy followed. 4 E Share price performance Analyse changes in the of share price over the past 10 years, and based on your analysis discuss the performance of the company over the past 10 years. 4 Conclusion & recommendations 1 Presentation (Contribution Sheet, referencing, spelling, grammar, spacing, proper use of tables, figures, etc.) 3 Total 25

Scoring Rubric Maximum marks Allocated marks Introduction and purpose of analysis 1 A Industry and market outlook Describe the economic and industry environment for the industry in general and for the selected company in particular. Critically evaluate and comment on the key factors that affect the company’s attractiveness for investment. 3 B Risk analysis Outline and comment on the risk (both systematic and unsystematic risk) profile of the company. Determine the beta for the firm using raw data. Discuss the issues associated with estimating beta. 4

3000 words, my company name is Bluescope Steel Ltd Assessment Task Select a company from the list below: COMPANY NAME SYMBOL GICS SECTOR Cochlear Ltd COH Health Care Boral Ltd BLD Materials Bluescope Steel Ltd BSL Materials Metcash Ltd MTS Consumer Staples Seek Ltd SEK Industrials ResMed Inc RMD Health Care Tatts Group Limited TTS Consumer Discretionary Washington H Soul Pattinson & Company Limited SOL Energy Crown Resorts Ltd CWN Consumer Discretionary Cleanaway Waste Management CWY Industrials Notify the lecturer in charge of the title of the company you have selected by 25.