Reference no: EM132400215 , Length: word count:2000

MGT6000 Managing Finance Case Analysis Assignment

You are expected to prepare a Report based on the following case.

The Case Analysis requires students to apply their knowledge of key finance concepts such as corporate governance, financial statement analysis, risk and return and valuation of shares to an analysis of two companies that are listed on the Australian Securities Exchange (ASX).

You are required to select two companies in two different sectors from the ASX100 list of 1 July 2019 (list of companies provided at the bottom). These are the top 100 Australian companies by market capitalization as of that date.

Instructions:

(a) Perform a comparative analysis of the corporate governance at the two companies using information on the composition of the board of directors, composition of executive management, executive remuneration and the value of the corporate governance index. Using information obtained plus academic literature, form an opinion on which company has better corporate governance.

(b) Using annual reports perform a comparative financial statement analysis of the two companies over the period 1 January 2014 to 31 December 2018. You are expected to determine two ratios from each ratio class.

(c) Determine the historical expected return, Beta and standard deviation of the companies' shares using monthly data for the given 5-year period (i.e. 1 January 2014 to 31 December 2018).

(d) Using qualitative and quantitative information, some from previous calculations, and any other relevant information perform a valuation of the two companies' shares using two approaches:

(i) Discounted cash flow approach - any one technique.

(ii) Relative valuation approach using the price earnings ratio.

(e) Assuming you inherited $800,000 from your late aunt, which of these two companies' shares would you invest in? Justify your answer.

In addition to the above, you will also be assessed on the following: (see Learning Rubric at the end for more description of expectation).

(f) Content, Audience and Purpose.

(g) Critical reasoning, presentation and defense of an argument and/or position.

(h) Analysis and Application with synthesis of new knowledge.

(i) Use of academic conventions and sources of evidence.

(j) Effective communication.

Instructions: This assignment must adhere to the following:

1. The assessment should be written in a Business Report Format. (Word or PDF format acceptable).

2. The assessment has to be properly referenced using the APA referencing style. Please note, Wikipedia and Investopedia are not acceptable academic sources. The reference list, graphs, tables and appendices are not included in the word count.

Note please use the two companies provided bellow:

Companies Allocated

1. James Hardie Indust Chess Depositary Interest 1:1 Material

2. Carsales.Com Limited - Information Technology.

Attachment:- Managing Finance Assignment Files.rar