Reference no: EM132624212

MBS546 Business Finance Assignment - Murdoch University, Australia

CASH FLOW ANALYSIS AND VALUATION OF SECURITY - TELSTRA CORPORATION LTD

Objective - To evaluate the performance of a firm and its share's value a financial analyst must be able to analyse the firm's financial statements. When analysing these statements, the analyst must focus on cash flows of the firm because ultimately it is changes in the cash flows of the firm that determines its value. This is also a market consensus. Hence understanding how and why cash flows change is an indispensable component of valuation of securities.

The objectives of this assignment are:

1. To equip you with a good understanding of the financial statements of the firm;

2. To build up your analytical skills in the area of cash flows analysis;

3. To apply the methods of valuation to value a real world company.

In addition to developing your knowledge of financial statements and valuation of security, the assignment aims to develop the ability to work in groups: learning how to coordinate with and learn from peers as well as how to deal with any negative issues that may arise in the group process. As such, the assignment submission will include an evaluation of the group process. The group evaluation will not attract any marks; however the rest of the assignment will not be marked without a group evaluation. To assist in the smooth running of groups some guidelines are included with the assignment instructions. These are to be used as a guide only. Groups have their own personalities, so it is important to establish your group norms and plans in a way that best suits your group.

Please ensure that group process problems are discussed and resolved as they arise. If your group encounters any problems that it cannot resolve you can ask your course coordinator to join the group for advice or mediation. Do not leave this to the last minute. Your course coordinator will require all group records to have been kept so that an objective record of proceedings is available.

Group evaluation:

As professionals, you are required to design your own evaluation form for your group assignment. The evaluation should assess whether your group has achieved your stated goals in completing the assignment.

First group meeting

Ensure that all group members have their say in this meeting. This ensures that everybody is aware of each other's expectations. To ensure that meetings run efficiently one group member should undertake the role of facilitator, and another the role of note taker. These roles can be filled on a rotating basis.

The role of the facilitator is to manage the meeting, ensure the group code of behaviour is adhered to and ensure that everybody has a chance to contribute.

Reaching a consensus regarding a desired code of behaviour ensures that all members know what is expected of them. If all group members observe the code of behaviour everybody should learn from and enjoy the group experience.

Establishing strategies now for if a member does not conform to the group code of behaviour, or does not undertake their assigned task by an appropriate time or to an acceptable standard means that all group members have been involved in establishing these strategies. Therefore if somebody does not conform to the group standard they are more likely to see the subsequent course of action as fair and objective.

Determining the skills of the various group members allows for tasks to be allocated in a manner that optimises the group output. When allocating tasks; remember that one of the objectives is to learn from each other.

At the end of this and every meeting you should set the next meeting date, time and venue. Subsequent group meetings:

A record will be kept of -

Meeting date, time and place

Members in attendance

If any members are late and whether they have informed other members.

Who undertakes the roles of facilitator and note taker.

Tasks achieved since the last meeting.

Decisions made by the group (point form OK)

Where tasks are assigned: who is to do what by when.

Next meeting details - date, time, place.

If any disputes arise that require mediation from outside of the group a copy of these records will be required.

Attachment:- Business Finance Assignment File.rar