Assessment weight: 20%
Due: 10 May 2017
Word limit: 3,000 words ±10% (excluding references and appendices)
Learning Outcomes : LO2, LO5
Submission: Via Turnitin only.
Return time: Grade and comments will be available within two weeks of the
due date of this assignment.
This assignment is to be based on an Australian listed company chosen by the group from the list below:
(i) Blackmores Limited (ASX Code: BKL).
(ii) Slater and Gordon Limited (ASX code: SGH)
(iii) Domino’s Pizza Enterprises Limied (ASX Code: DMP)
(iiii) MG Unit Trust (ASX Code: MGC)
(v) Bellamy’s Australia Limited (ASX Code: BAL)
The assignment is to be completed in teams of up to four students. There is no requirement for students to be in the same tutorial group. The aim of this group assignment is to foster your ability to research, critically analyse the company financial information and integrate knowledge and skills learnt in BAFN200 to analyse a real company. A further aim is to improve your written communication skills and team-working skills.
Remember, before you attempt questions, it is essential that you familiarise yourself with the company and its financial statements.
You are required to answer the following questions with respect to your chosen company:
a) Examine the share price history and history of traded volumes over the past five years, identifying the main causes of changes in the share price during this period. Based on its stock price, do you think the company has performed well over the past five years?
b) Calculate the market capitalisation of the company as of the end of fiscal year of 2016. Do you think the stock is under-priced or over-priced? Answer this question with reference to the capital asset pricing model (CAPM), and justify your answer. How do you estimate the future price of the stock? Is this the best time to buy or sell the company’s shares? Why?
c) What is the mix of debt and equity financing? What types of debt and equity are currently used? Does current financing strategy highlight any impending risks. Critically evaluate the financing policy adopted by the company.
d) If you had $10,000 savings, would you invest in this business? Why or why not? Discuss.
Instructions about the group assignment
Please refer to the Group Formation document for supplementary instructions.
It is up to the group to manage the group dynamics and get equal contribution from all members. It is usually a good idea to appoint a leader to direct and coordinate the activities of the group including allocating tasks among the group members. All group members are expected to discuss the assignment as a whole and contribute to preparing answers to all questions. It is very important for all members to take an active part in completing the assignment and make an equal contribution Before the final submission of the assignment, all group members are expected to review the answers. Only one member should submit the assignment on Turnitin on behalf of all the group members. It is imperative that you list the full names student IDs of all students in the group on the first page of your submission.
Assignments must be submitted with an ACU cover sheet (The cover sheet may be submitted separately), and should:
o Be typed using one-and-a half (1.5) spacing left justified.
o Use Ariel or Times New Roman font size 12.
o Display a one inch margin on all sides.
o Appropriately cite reference original work, author(s) etc. Citation and referencing must conform to the Harvard System.
o
Your report should contain an introduction followed by answers to questions and a conclusion. Grading will be based on critical analysis of the issue, evidence of wide reading on topic, coherence in the development of arguments, use of appropriate evidence, and clarity of expressions.
Marking guide:
Part Max
Introduction 2
a Share price 4
b Market capitalisation 4
c Financing strategy 4
d
Investment 4
Conclusion 2
TOTAL 20
3
APPENDIX 2
Rubric – Group Assignment
ILOs Criteria Standards
Below Expectations Meets Expectations Exceeds Expectations
Level 1 (NN) Level 2 (PA) Level 3 (CR) Level 4 (DI) Level 5 (HD)
LO2 Use of financial information for making decisions Displayed a poor grasp of the use of financial information in making decisions. Arguments are implausible and unsubstantiated. Fails to address the question posed. Limited and/or irrelevant research. Displayed some basic understanding of the use of financial information in making decisions. Arguments are generally plausible with some evidence. Basic research Displayed above-average grasp of the use of financial information in making decisions. Arguments with reasonable support. Adequate research. Displayed good understanding of the use of financial information in making decisions. Demonstrates high standard of insight and originality.
More than adequate research. Displays an excellent grasp of the use of financial information in making decisions. Demonstrates exceptionally insightful and interesting arguments. A highly-structured and comprehensive response to the task. Extensive and relevant research.
LO5 Debt Displays poor grasp of debt and its implications. Arguments are implausible and unsubstantiated. Fails to address the question posed. Limited and/or irrelevant research.
Displays basic grasp of debt and its implications.Arguments are generally plausible with some evidence. Basic research
Displays good grasp of debt and its implications.Arguments with reasonable support. Adequate research Displays high-level grasp of debt and its implications.Demonstrates high standard of insight and originality.
More than adequate research. Displays extraordinary grasp of debt and its implications.Demonstrates exceptionally insightful and interesting arguments. A highly-structured and comprehensive response to the task. Extensive and relevant research.
LO5 Equity Displays poor grasp of equity and its implications.Arguments are implausible and unsubstantiated. Fails to address the question posed. Limited and/or irrelevant research. Displays basic grasp of equity and its implications.Arguments are generally plausible with some evidence. Basic research. Displays good grasp of equity and its implications.Arguments with reasonable support. Adequate research. Displays high-level grasp of equity and its implications.Demonstrates high standard of insight and originality.
More than adequate research. Displays extraordinary grasp of equity and its implications. A highly-structured and comprehensive response to the task. Extensive and relevant research.
LO5 Financial structure Displays poor grasp of financial structure and its implications. Arguments are implausible and unsubstantiated. Fails to address the question posed. Limited and/or irrelevant research. Displays basic grasp of financial structure its implications.Arguments are generally plausible with some evidence. Basic research.
Displays good grasp of financial structure and its implications.Arguments with reasonable support. Adequate research Displays high-level grasp of financial structure and its implications.Demonstrates high standard of insight and originality. More than adequate research
Displays extraordinary grasp of financial structure and its implications. A highly-structured and comprehensive response to the task. Extensive and relevant research
LO5 Risk Displays poor grasp of risk and its implications. Fails to address the question posed. Limited and/or irrelevant research.
Displays basic grasp of risk and its implications.Arguments are generally plausible with some evidence. Basic research. Displays good grasp of risk and its implications.Arguments with reasonable support. Adequate research. Displays high-level grasp of risk and its implications.Demonstrates high standard of insight and originality. More than adequate research. Displays extraordinary grasp of risk and its implications. A highly-structured and comprehensive response to the task. Extensive and relevant research
.
LO5 Report organisation (Genre, pagination, format, spacing, grammar, spelling, punctuation, referencing) Poorly-written with errors in spelling and grammar. Mistakes in citations.
Written according to the academic and adheres to academic genre (e.g., with introduction, body of the text, and conclusion). Has accurate spelling, grammar and sentence construction.
Well-written and adheres to academic genre. There are no mistakes in citation.
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