Reference no: EM132211384 , Length: word count:3000
Finance for Business Assignment -
Tasks - This assessment task is a written report and analysis of the financial performance of a selected listed company on the ASX in order to provide financial and investment advice to a wealthy investor. This assignment requires your group to undertake a comprehensive examination of a firm's financial performance based on update financial statements of the chosen companies.
BACKGROUND - You're a group of investment analysts who work for a large investment consulting firm based in Australia. There's one big institutional investor from overseas that is interested in investing in the Australian market. You've been asked to choose a listed company in Australia (in the industry you think will have the most promising future for investment) then evaluate it and give your client financial advice on whether or not she/he should include the share of that company in her/his investment portfolio.
Required: Create your group's "business name" under which your group will be providing the financial advisory services. Choose one listed company that your group will investigate/analyse for the purposes of possible recommendation to your client. The group should obtain all information about the selected company from this web site: Australian Securities Exchange.
Obtain a copy of the last two financial years (2016-2017 and 2017-2018) Financial Statements of the chosen company (annual reports are accessible via company websites). Your group can downloaded these documents from the suggested web site using the firm's code (example, BHPfor BHP Billiton Company, etc.).
1. Description of the companies - Prepare a brief description of the selected company, outlining the core activities, competitive advantages, and the market in which it operates within and any factors in the company's history which you consider help present a "picture" of your chosen company.
2. Calculation and analysis of financial ratios - Using financial data obtained from current financial statements of your selected company for the given 2 years to calculate the following ratios and present them in relevant charts or tables. Provide analysis on the company performance and justify your opinions using the data:
- Liquidity ratios
- Profitability ratios
- Market value ratios
3. Graphs and comparison of share price movements - Using the information from the ASX website: to prepare one or more graph displaying movements in the monthly share prices over the last two years for the chosen company that you are investigating.
Providing an analysis to compare the movements in the companies' share prices to the All Ordinaries Index. For instance, whether your selected company price trend is more or less volatile compared to the index? How closely it is correlated with the All Ordinaries Index, above or below the index?
Do a research to identify the factors that affected the share price movements of the company within 2 years.
4. Calculation cost of equity - Go online to Reuters website and type in the code for your company into the Search Stocks field and click on the magnifying glass button.
What is the calculated beta (β) for your company?
If the risk free rate is 6 % and the market risk premium is 7 %, use the Capital Asset Pricing Model (CAPM) (SML approach) to calculate the required rate of return for the company's shares.
5. Identify the capital structure - Identify and discuss the capital structure of the company by calculation capital structure ratios and weights of debts and equity capital. Comment on any change in the company's capital structure through years. Support your comments and analysis by further research.
6. Consulting Report - After completion of your analysis, you need to present a wellstructured report to your client using appropriate style and language.
Structure of the Report: will include:
1. Title
2. Introduction
3. Table of Content
4. Body (in text citation: paraphrased or quotation to support your arguments)
5. Conclusion
6. Recommendation
7. Reference lists (Harvard Style).
Attachment:- Assignment File.rar