Assessment Details and Submission Guidelines
Trimester T3 2019
Unit Code HI5002
Unit Title Finance for Business
Assessment Type Group Assignment
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 6 members to study, undertake research, analyse and conduct academic work within the topics of financial management from week 1 to week 9. (ULO 1, 3, 4, 5, 8, 10 & 11)
Weight 40 % of the total assessments, including 30% for written report and 10% for presentation
Total Marks 40 (30 for written report and 10 for presentation)
Word limit Not more than 3,000 words
Due Date Registration of groups: 5:00 pm Friday, Week 7
Final Submission of Group Assignment: 11:59 pm Sunday, Week 10
Submission Guidelines • All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page. Make sure that your group member’s name and surname, student ID, unit name, and code and lecture’s name are written on the cover sheet of the submitted assignment.
• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page numbers.
• Reference sources must be cited in the text of the report, and listed appropriately
at the end in a reference list using Harvard referencing style.
• Submitted work should be your original work showing your creativity. Please ensure
the self-check for plagiarism to be done when you submit your work in Black Board.
Three attempts of submission are allowed for checking similarity and final
submission. Your lecturer only mark the final submission. As a guide, a similarity score of over 30% is considered as excessive except in the cases where the similarity is caused by the use of template provided by the lecturer, references or sources of data. Please note that it takes 48 hours for the self-check report to be available for your viewing.
• When you submit your assignment electronically, please save the file as ‘Group
Assignment- your group name .doc’. You are required to submit the assignment at Group Assignment Final Submission, which is under Assignment and Due Dates on Black Board. Always keep an electronic copy until you have received the final grade for the Unit. Please make sure that you submit the correct file in the correct format that is readable in Black Board. Any appeal relating to submitting wrong files and wrong format after the deadline will not be considered.
HI5002 Finance for Business Group Assignment T3 2019
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ASSIGNMENT SPECIFICATIONS
Assignment Tasks
This assignment task is a written report that include 3 parts: Part 1 is a research on financial markets Part 2 is a fact finding of financial market of 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: www.asx.com.au; Australian Securities and Investment Commission: https://asic.gov.au/ and the Australian Prudential Regulation Authority (APRA) https://www.apra.gov.au for their research. Using secondary data (researches done by other) for fact finding in 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 you work: the purpose of assignment, your key findings and structure of your assignment (not more than 300 words)
Part 1. Research on financial market
1.1 Comparison of three key financial products common stocks, bonds and preferred stocks from the perspective of an investor
Criteria for comparison include: (1) ownership status; (2) nature of funding; (iii) risks; (iv) income; (v) voting right, (vi) maturity and (vii) priority in liquidation. Your research should be supported by real life examples of common stocks, bonds and preferred stocks issued by any company with relevant data of first issuance, trading market, trading volume, market capitalization and market price.
Example: On May 18, 2012, Facebook first issued their common stock in the largest technology IPO in US financial market history. In that issue Facebook offered 421,233,615 shares at a price of $38 per share and raised $16.007 billion. Facebook share is traded on Nasdaq market. As of 29 October 2019, Facebook common share has the trading volume of 13,574,856 shares, market previous close of $189.40, market open price of $191.50 and market cap of 540,092,058,776.
A graph of five year trading data should be provided for each example.
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Part 3. Risk analysis and project evaluation
3.1 Perform a sensitivity analysis with data provided
Assume that your selected company is considering a potential project with a new product that is expected to sell for an average price of $22 per unit and the company expects it can sell 400 000 units per year at this price for a period of 4 years. Launching this project will require purchase of a $2 450 000 equipment that has residual value in four years of $250 000 and adding $ 500 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below:
Depreciation method: straight line Variable cost per unit: $12
Cash fixed costs per year $250 000 Discount rate: 10%
Tax Rate: 30%
Do an analysis with cash flows of the project to determine the sensitivity of the project NPV with the following changes in the value drivers and provide your results in (a) relevant tables:
Unit sales decrease by 10%
Price per unit decreases by 10%
Variable cost per unit increases 10%
Cash fixed cost per year increases by 10%
3.2 Perform an NPV break even analysis for the case where price per unit decreases by 10 % to identify the number of unit sales that is needed for the project to get break-even
Trial and error method is to be used with excel spread sheet.
Conclusion
Summarize the outcomes of your works (not more than 300 words)
Presentation: you group is required to present your assignment outcomes in a presentation report. All members need to participate in the presentation using a PowerPoint slides. Due to time availability, your lecturer can assign you to do an in-class presentation or a video presentation which you will submit the link to Blackboard. The presentation is in no more than 10 minutes.
Marking criteria
Marking criteria Weighting
1. Research on financial market
1.1. Comparison of three key financial products 4%
1.2. Analysis of five basis principles of finance 4%
2. Fact Finding of Australian financial markets
2.1. Fact Finding of the Australian Bond market (1 mark each question) 5%
2.2. Fact Finding of Australian Share market (1 mark each question) 5%
3. Risk analysis and project evaluation
3.1. Perform a sensitivity analysis with data provided 5%
3.2. Perform an NPV break even analysis for the case where price per unit decreases by 10 % to identify the number of unit sales that is needed for the project to get break-even point 5%
4. Academic writing: Presentation, structure and academic writing 2%
Total weight of written report 30%
5. Presentation:
Presentation content 6%
Presentation skill 4%
Total weight of presentation 10%
Total weight of group assignment 40%
HI5002 Finance for Business Group Assignment T3 2019
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MARKING RUBRIC
Task Excellent Very Good Good Satisfactory Unsatisfactory
(80%-full marks (71-79% marks (61-70% marks (50-60% marks (0-49% marks
given) given) given) given) given)
1. Research on financial market
Comparison of three key financial products
Analysis of five basis principles of finance
All features of three key financial products are provided with good analysis and explanation basing on the 7 criteria with good analysis
Comparison is provided and organized in a logical method
Three examples of financial products are provided and justified with required information and relevant data
Clearly identify the five basis principles of finance with good analysis and explanation
Events selected from mass media for illustration of five principles are very relevant with good explanation and analysis
Features of three key financial products are provided with adequate explanation and analysis
Comparison is made relevantly
Three examples are provided with adequate information and data.
Clearly identify the five basis principles of finance with proper analysis and explanation
Events selected from mass media for illustration of five principles are relevant with proper explanation and analysis
Features of three key financial products are provided with adequate explanation and analysis
Comparison is made relevantly but may not be completed
Three examples are provided with some information and data.
Identify the five basis principles of finance with some analysis and explanation
Events selected from mass media for illustration of five principles are relevant however with some incomplete analysis and explanation
2. Fact Finding of Australian financial markets
2.1. Fact finding of share markets
2.2. Fact Findings of bond markets in Australia Efficiently using data and information derived from designated source to provide an excellent fact finding and analysis to address all the questions. Analysis is justified and presented in an efficient, analytical and logical manner. Using relevant data and information derived from designated source to provide a good fact finding and analysis to address the questions. Analysis is justified and presented in a proper and logical manner. Data and information derived from designated source to provide a proper fact finding and analysis to address the questions. Using limited data and information derived from designated
source to provide a fact finding and analysis to address the questions. No or inadequate using of secondary data and information for fact finding. Incomplete analysis.
3. Risk analysis and project evaluation
3.1. Perform a sensitivity analysis with data provided
3.2. Perform an NPV break even analysis for the case where price per unit decreases by 10 % to identify the number of unit sales that is needed for the project to get break-even point Presenting a correct and well- presented sensitivity and NPV break-even point analysis with proper analysis and justification;
Analysis is taken with exceptional good justification and presentation of data and calculation. Presenting a correct and well- presented sensitivity and NPV break-even point analysis with proper analysis and justification. Presenting a correct sensitivity and NPV break-even point analysis with proper analysis and justification. Presenting a correct sensitivity and NPV break- even point analysis with proper analysis and justification. However, there may be some incorrect calculation,
limited analysis and explanation. No or incorrect sensitivity and NPV break-even point analysis.
4. Academic writing
Presentation, structure and
academic writing Demonstrated a high level of understanding and skills of academic writing by means of criticism, logical argument, and interpretation of data and information. Very rational demonstration of the ability to present the ideas in proper analytical and contextual level. Demonstrating the ability to present the ideas in proper analytical and contextual level. Demonstrating limited skills of academic writing in terms of structure, presentation, wordings and referencing. No relevant justification using data and information derived from the analysis of financial statements;
Failing to meet the requirements of academic writing in terms of structure, presentation, wordings and referencing.
HI5002 Finance for Business Group Assignment T3 2019
5. Presentation
Presentation Exceptionally well Very well Adequately Basically Insufficiently
content summarised and summarized and summarized and presented correct presented or
presented presented good presented answers for the incorrectly
excellent answers answers for the correct answers group presented
for the group group for the group assignment. answers for
assignment assignment assignment Errors might group assignment
questions questions question present but minor questions
Presentation The presentation is The presentation The presentation The presentation The presentation
skill cohesive& highly is mostly is somewhat is cohesive & is not cohesive
professionally cohesive & cohesive professionally nor professionally
presented professionally presented &professionally presented presented at times presented
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