Reference no: EM132582670

HI5002 Finance for Business Assignment - Holmes Institute, Australia

Assessment Title - Research on Financial market and Capital Budgeting Analysis

Purpose of the assessment (with ULO Mapping) - Students are required to form a group from 3 to 5 members to study, undertake research, analyse and conduct academic work within the topics of financial management from week 1 to week 9.

ASSIGNMENT SPECIFICATIONS -

Assignment Tasks - This assignment task is a written report that include 3 parts: Part 1 is a research and fact finding on Australian financial market. Part 2 is a fact finding of financial market regulation in Australia and Part 3 is a risk analysis and project evaluation. To complete the assignment, groups are recommended to obtain data and information from relevant web sites, especially websites of Australia Stock Exchange, Australian Securities and Investment Commission, and the Australian Prudential Regulation Authority (APRA) for their research and fact finding. Using secondary data (researches done by others) for fact findings in Pat 1 and Part 2 is NOT RECOMMENDED and will be PENALIZED.

Requirements - The assignment should cover the contents described bellows.

Assignment Structure and Details of Assignment Tasks -

Introduction -

Briefly introduction of your group's work: the purpose of assignment, key findings and structure of the assignment (not more than 300 words)

Part 1. Research and fact finding of Australian financial market

1.1 Comparison of four key financial institutions: commercial banks, insurance companies, investment banks and investment funds in Australia from the perspective of a potential investor who would like to invest into the institutions.

1.2 Analysis of three financial management questions: (i) capital budgeting, (ii) capital structure and (ii) working capital management.

Part 2. Fact Finding of Australian financial market regulation

2.1 Fact finding of the listing on ASX

Assuming your group is working for a company that is considering to be listed on ASX in the near future. Go to the website of Australian Stock Exchange (ASX), do a fact finding and present an analysis of Australian Stock Exchange Listing Requirements and process. The following questions should be addressed:

(1) What are the advantages of being a listed company on ASX?

(2) What are the problems that need to be taken in consideration for being listed company on ASX?

(3) What are the requirements for listing on ASX?

(4) What are the steps of listing procedures on ASX?

(5) How listing fee is applied. Using ASX listing fee calculator to identify your selected company listing fee, choosing any random number for the ranges of market cap: 10 million -50 million; 50 million-100 million; 100 million-500 million.

2.2 Fact Finding of requirements on Financial advisory service registration in Australia

Assuming after graduation you would like to work as a financial adviser. Go to the website of Australian Securities and Investment Commission, do a fact finding and present an analysis of financial advisor registration to identify whether you are qualified and what steps should be taken to be a financial adviser in Australia. The following questions should be addressed:

(1) What is the ASIC's Financial advisers register?

(2) Who should be on the Register, who are not on the Register and who updates the register?

(3) What information should be on the Register?

(4) What are the relevant financial products for a financial advisor?

(5) What are the professional standards applied for a financial advisor.

Part 3. Risk analysis and project evaluation

3.1 Perform a scenario analysis with data provided

3.2 Perform an NPV break even analysis for the case where price per unit decreased by 20%, variable cost per unit increases by 20%, cash fixed costs decreases by $200,000 to identify the number of unit sales that is needed for the project to get break-even.

Conclusion

Summarize the outcomes of your group's works (not more than 300 words)

Presentation: Your group is required to present the assignment outcomes in a video presentation. All members need to participate in the presentation using a PowerPoint slides. The presentation is in no more than 10 minutes.

The video presentation should be uploaded to a web-based hosting platform (e.g. Youtube) and your group is required to submit the link to the video via a separate submission link at Blackboard.

Attachment:- Capital Budgeting Analysis Assignment File.rar