What the market capitalisation of the company at this date

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Reference no: EM132107692

Financial Management Assignment -

Learning Outcomes -

1. To demonstrate knowledge of broad business principles with depth of understanding of at least one business discipline.

2. To develop effective oral and written communication skills.

3. To develop the skills to demonstrate a broad understanding of business principles and demonstrate depth in at least one discipline.

5. To develop and apply skills in critical thinking, complex problem solving and decision making.

Part A: Interpreting Financial Information

A financial analyst has gathered the following information about ABC Retail Company for the years 2016-2018.

ABC Retail Company Pty Ltd Comparative Financial Information 30th June ($'000)


2016

2017

2018

Balance Sheet Information




Current Assets




Cash

342

344

281

Accounts Receivable

4346

4892

5239

Inventory

6483

7196

8013

Non-current Assets




Property Plant & Equipment

16546

16546

18746

Accumulated Depreciation

8273

11582

14983

Current Liabilities




Bank Overdraft

14

0

65

Accounts Payable

6224

4167

3982

Non-current Liabilities




Loan

10750

10750

10750

Shareholders Equity




Paid in Capital

2000

2000

2000

Retained Earnings

456

479

499

Total Shareholders Equity

2456

2479

2499

Other Financial Information




Sales

38222

39258

40592

Earnings Before Interest and Tax

1208

1281

1305

Interest Expense

1077

1215

1247

Tax Expense

39

20

17

Dividends Paid

46

23

20

Earnings Per Share

0.046

0.023

0.020

P/E ratio

11.16

8.39

7.66

Other Income

0

0

0

1. Use the above information to answer the following questions:

a) At what price did ABC's shares trade on the 30th June 2018?

b) What was the market capitalisation of the company at this date?

c) Compare ABC's most recent Price/Earnings (P/E) ratio to the industry average and provide an explanation for any difference observed (remember to cite the source of your information).

2. Analyse the company's current and quick ratios.

3. Evaluate the company's working capital management over the three-year period. Use ratio analysis to support your conclusions.

4. Use ratio analysis to identify and explain the trend in the company's profitability.

5. If you were a bank considering lending to ABC, what ratio(s) would give the best indication of the company's solvency? Explain why you would or would not lend to ABC.

Part B: Business Report

Your employer is an Australian financial corporation. You have been asked to write a business report on the role of ethics in corporate governance. Your report should be supported by appropriate academic research and must include an analysis of recent news regarding AMP and its relationship with the corporate regulator.

Assessment Criteria:

  • Demonstrated knowledge of the agency problem and shareholder wealth maximization.
  • Application of relevant financial theory to real world examples
  • Logical inferences drawn from information presented and appropriate justification of stance taken.
  • Overall presentation of the argument is relevant and appropriate.

GENERAL NOTES FOR ASSIGNMENTS -

Assignments should usually incorporate a formal introduction, main points and conclusion, and will be fully referenced including a reference list.

Note - Part A - Calculation and Part B - 1000 words.

Reference no: EM132107692

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Reviews

len2107692

9/8/2018 12:37:06 AM

Part A – Calculation and Part B - 1000 words. Assessment purpose - The assignment is designed to enhance students’ skills in analysing and interpreting financial statements and other market-related financial information as well as facilitating students’ discussion of corporate governance in the finance sector. Students are advised that any submissions past the due date without an approved extension or without approved extenuating circumstances incurs a 5% penalty per calendar day, calculated from the total mark E.g. a task marked out of 40 will incur a 2 mark penalty per calendar day.

len2107692

9/8/2018 12:36:59 AM

ASSESSMENT SUBMISSION: This assessment is a group activity and students are required to work with their respective groups. No individual submission will be accepted. You will not receive any marks for this assignment if your group members collectively report against you for non-participation or non-cooperation. You have to nominate someone as your group leader to coordinate the assignment submission. The assignment must be submitted online in Moodle and Turnitin. Only submit one copy of your assignment but include all group member names on the cover sheet. All materials MUST be submitted electronically in Microsoft Word format. Other formats may not be readable by markers. Please be aware that any assessments submitted in other formats will be considered LATE and will lose marks until it is presented in MS Word. No paper based or hardcopy submission will be accepted.

len2107692

9/8/2018 12:36:52 AM

GENERAL NOTES FOR ASSIGNMENTS - Assignments should usually incorporate a formal introduction, main points and conclusion, and will be fully referenced including a reference list. The work must be fully referenced with in-text citations and a reference list at the end. We strongly recommend you to refer to the Academic Learning Skills materials available in the Moodle. We recommend a minimum of THREE references, unless instructed differently by your lecturer. Unlessspecifically instructed otherwise by your lecturer, any paper with lessthan FIVE references may be failed. Work that includes sources that are not properly referenced according to the “Harvard Referencing Workbook” will be penalised. Marks will be deducted for failure to adhere to the word count – as a general rule you may go over or under by 10% than the stated length.

len2107692

9/8/2018 12:36:46 AM

GENERAL NOTES FOR REFERENCING - High quality work must be fully referenced with in-text citations and a reference list at the end. References are assessed for their quality. You should draw on quality academic sources, such as books, chapters from edited books, journals etc. Your textbook can be used as a reference, but not the lecturer notes. We want to see evidence that you are capable of conducting your own research. Also, in order to help markers determine students’ understanding of the work they cite, all in-text references (not just direct quotes) must include the specific page number/s if shown in the original. Before preparing your assignment or own contribution.

len2107692

9/8/2018 12:36:38 AM

Content of the report (demonstrated knowledge of the topic): 15 marks, Presentation: Proper report format is used and an assignment cover page is also presented: 2 marks. Referencing: Harvard referencing is strictly followed. A minimum of 3 different academic reference sources were used. Students are advised to use EBSCO Research. (Remember that Wikipedia, Investopedia and other similar websites are not academic sources and must not be used.): 3 marks. Word limit: The word limit is 1,000 for the essay. The acceptable range for the essay’s word count is based on +/- 10%. Possible mark deduction if failing to comply with the requirement.

len2107692

9/8/2018 12:36:32 AM

Collusion: Collusion is the active cooperation of two or more students/groups to deceive examiners. You will be guilty of collusion if you knowingly allow any of your academic work to be acquired by another person/group for presentation as if it were that person/group’s own work. If you offer to provide work to another student/group to be passed off as their own or if you arrange for another student or third party to complete work on your behalf, you are guilty of collusion.

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