Describe the economic and industry environment for industry

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Reference no: EM131668355 , Length: word count:3000

FINANCE AND QUANTITATIVE METHODS ASSIGNMENT

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

My company name is Bluescope Steel Ltd.

Required:

Suppose you work for an S&P/ASX20 company which is exploring opportunities to acquire a business. Chief Executive Officer (CEO) is seeking your recommendation whether the company you selected would be a worthy target for acquisition. You have been asked by CEO to write a report addressing the industry outlook, risk profile, cost of capital and dividend policy and make recommendations.

A) Industry and market outlook

Describe the economic and industry environment for the industry in general and the selected company in particular. Critically evaluate and comment on the key factors that affect the company's attractiveness for investment.

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.

C) Cost of capital and 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.

D) Dividend policy

Analyze the company's dividend practices and the use of internal funds over the 2007-2016 period. Describe the dividend pattern and policy followed. E) Share price performance Analyze 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.

Format of the assignment -

An assignment coversheet (ensure group members' full names and student numbers are correctly written, and the part each student completed specified)

A table of contents

An introduction

The body of the assignment

References

12-point Arial or Times New Roman font with 1 inch margins on all sides.

Double-spaced

All pages following the cover page should have a page number.

Reference no: EM131668355

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Reviews

len1668355

10/5/2017 12:30:57 AM

Australian student, total 3000 words, my company name is Bluescope Steel Ltd. Notify the lecturer in charge of the title of the company you have selected by 25. Contribution sheet completed by each student is handed in to the lecturer within the due date (23.59AEDST, 15) via email. Appropriately cite reference for original work, author(s) etc. Citation and referencing must conform to Harvard/APA 6 referencing system. Presentation (Contribution Sheet, referencing, spelling, grammar, spacing, proper use of tables, figures, etc.)

len1668355

10/5/2017 12:30:51 AM

Students must submit assignments electronically via Turnitin. The software used for checking originality compares works submitted by students with published material from a variety of sources including the Internet. The assignment is to be submitted via LEO/Turnitin and will be checked for originality. A Turnitin similarity score of 10% or greater will be considered cause for concern.

len1668355

10/5/2017 12:30:42 AM

Penalties will be applied for late submission. Assessment tasks submitted after the due or extended date will incur, for each whole or part of a calendar day that the work is overdue, a 5% penalty of the maximum marks available for that assessment task up to a maximum of 15%. Assessment tasks received more than three calendar days after the due or extended date will not be allocated a mark. Apply risk and return relationships to the valuation of financial assets - Displays extraordinary high level understanding of risk and return relationships to the valuation of financial assets.

len1668355

10/5/2017 12:30:35 AM

Demonstrates exceptionally insightful, interesting and fully supported arguments. A highly-structured and comprehensive response to the task. Extensive and relevant research. Displays extraordinary high level understanding of risk and return relationships to the valuation of financial assets. Demonstrates exceptionally insightful, interesting and fully supported arguments. A highly-structured and comprehensive response to the task. Extensive and relevant research. - Displays above-average grasp of raising debt and equity capital for the firm in terms of their impact on the firm’s financial structure and risk. Demonstrates exceptionally insightful, interesting and fully supported arguments. A highly-structured and comprehensive response to the task. Extensive and relevant research.

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