Diploma of Business & Enterprise
Accounting WBD1001
SEMESTER 2 2014
MAJOR ASSIGNMENT
DECISION MAKING IN THE SHAREMARKET
30% of your total mark
• Report Component of this Assignment Represents 20% of the total assessment.
• Presentation component represents 10% of the total assessment.
DUE DATES
Report
It is crucial to complete this part of the assessment of time, as it enables your teacher to review
the companies you have chosen and the starting share prices.
Report Component (Part 2 & 3)
Week 12 or as advised by your teacher
Use the report template as a guide for completing this part. You will present one cohesive report covering all 3 companies and Parts 1 and 2
Presentation Week 13 or as advised by your teacher
PART 1 – SHAREMARKET ASSIGNMENT SHEET
Complete and submit the share selection sheet attached (pages 5 & 7)
Working in teams of 3, you are required to select a share portfolio consisting of 3 companies.
There are over 2,100 companies listed on the Australian Securities Exchange (ASX). These companies are then divided into sectors.
There are 10 sectors, and they are referred to as the GICS (Global Industry Classification Standard).
For a full listing of the GICS Sectors, they can be located on the following link:-http://www.asx.com.au/products/gics.htm
For an alphabetical listing of all companies, that also indicates which sector they belong to, this can be located at the following link:-http://www.asx.com.au/asx/research/listedCompanies.do
For this assignment, you are to choose a company from these sectors:-
1. Resources Sectors (Metals, Mining and Energy)
Metals & Mining: The Metals & Mining sector is the largest industry sector by number of companies with almost 700 companies involved in mineral exploration, development and production.
Energy: Energy sector is comprised of companies involved in the exploration and development of Coal, Uranium, Oil & Gas and renewable energy assets. Australia is rich in natural resources and boasts some truly world class energy assets.
2. Consumer (Discretionary and Staples)
Companies operating in the consumer sector are distinguished by the discretionary or staple nature of their product offering. Companies involved in the production and distribution of food and beverages are considered to be staples, whereas companies involved in media, general retailing and gambling make up the consumer discretionary sector
3. Health Care
Health Care sector represents a diverse range of companies including major Australian success stories in pharmaceuticals, biotechnology, medical practice and pathology operators, as well as junior life sciences and medical device companies
4. Financial
The financial sector is the largest industry sector by capitalisation and consists of trading and investment banks, asset managers, insurance companies
You cannot chose 2 companies from the same sector.
The total value of your portfolio should add up to $15,000 worth of shares based on the closing share prices posted on the ASX website on Monday of week beginning week 3, or date advised by your teacher. Check after 6pm to ensure that the latest price has been updated.
During the tracking period, Monday of week beginning week 3 to Friday of week beginning week 10, or date advised by your teacher your team is to monitor the daily performance of the shares and the overall performance of the Australian share-market.
All companies have an ASX code. To access historical data relating to the closing share of the company, this can be found by going to the following link:-
http://au.finance.yahoo.com/q/hp?s=ASX.AX
You need to enter the company ASX code, and the date range you need for the historical share price
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Accounting WBDE1001 - SEMESTER 2/ 2014
SHAREMARKET ASSIGNMENT
PART 1 Share Selection- DUE Week 4 [5 marks]
Name: …………………………………….. ID No………………………….
Name: …………………………………….. ID No…………………………
Name: …………………………………….. ID No…………………………
Teachers Name: ………………………… Class Day and Time: …………
COMPANY NAME SHARE PRICE
On Monday of
week beginning Week 3
NO. OF SHARES
TOTAL INVESTMENT
1.
2.
3.
TOTAL INVESTMENT
$15,000
?…………………………………………………………………………………………………….
Tear off and keep a copy of your share details for your reference
COMPANY NAME SHARE PRICE
On Monday of
week beginning Week 3
NO. OF SHARES
TOTAL INVESTMENT
1.
2.
3.
TOTAL INVESTMENT
$15,000
SUBMIT ONE PER GROUP
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Accounting WDBE1001 - SEMESTER 2 2014
Share-market Assignment – Individual Submission
Name:
Student ID:
Company Name
Each member in your team must complete this individual submission in their own hand-writing.
Please attach each member’s Individual Submission to the relevant Share Selection Sheet (page 5) This is to be submitted to your teacher in Week 4.
? Why did you choose this company?
? What do you know about the company and its business?
[include results of your research]
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
__________________________________________________________________________
Signature ______________________________ Date ____________________
REPORT COMPONENT DUE DATE: START OF LAST LESSON IN WEEK 12
PART 2 - COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION [55 marks]
You are required to provide a report that includes the information listed below:
[A] A brief description of each company in your team’s portfolio. It should be presented as a comparative table and should include:-
• Products And Services Provided By The Company [brief outline]
• Name Of Chief Executive Officer [or Managing Director]
• Salary or Number of Shares held by Chief Executive Officer [or Managing Director]
• Profit / Loss after Tax from 2013 Annual Report for the full financial year – consolidated figures
• Latest Dividend Paid – Dividend Per Share and Date Paid
• Size Of The Business By Total Assets – from 2013 Annual Report – consolidated figures
• Number Of Employees
• Share Price – 52 week High And Low
Supporting documentation should be included in your appendix for all information provided above. [100 word maximum for each company] [10 marks]
[B] For the tracking period only, using an Excel spreadsheet, prepare your own graph of the daily share price movements for each of your shares. Information should be shown in a table with separate columns for Date and Closing Price [dollars].
For the tracking period only, using an Excel spreadsheet prepare your own graph of the daily movement of the ASX200. Information should be shown in a table with separate columns for Date and Closing Value [points]. Copy and Paste Excel Tables and Graphs into a Word Document to include in your report.
[10 marks]
[C] For each company, provide an overview of the share price performance and describe the overall trend of the Australian share-market over the tracking period. Describe how each of your shares performed against the ASX200. Explain major movements in your share prices and the share-market with evidence from newspapers, business magazines, internet information or other relevant sources. Evidence should be included and news articles should be photocopied and neatly presented in an appendix to your report.
Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. Information regarding Harvard Referencing is available on the following webpage: http://w2.vu.edu.au/library/referencing/files/final%20HarvardGuide%202010.pdf
[250 word maximum for each company AND comparison with the ASX200] [25 marks]
[D] Calculate the Gain or Loss made on your portfolio during the tracking period. [5 marks]
[E] Provide a recommendation [buy/sell/hold] for each of your shares.
Support each recommendation with relevant information you have found in Part [C].
[50 words maximum for each company] [5 marks]
PART 3 – IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS [35marks]
[A] IDENTIFICATION OF KEY FINANCIAL DATA
For each company you have selected, find the Key Financial Data, from the 2013 Annual Report with results for the full financial year for 1 July 2012 to 30 June 2013.
The “consolidated†figures are required.
Revenue / Sales
Interest Expense
EBIT(Earnings before Interest and Income Tax)
Net Profit Before Tax
Net Profit After Tax
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Total Equity
References are required to identify the sources of all figures in your table. Include relevant pages in your appendix. [5 marks]
[B] RATIO ANALYSIS
From the Key Financial Data, calculate relevant ratios and provide an overview for each company’s:-
*Profitability *Stability/Activity *Liquidity
At least 3 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each company’s Financial Statements.
You are not limited to the ratios discussed in class – using research techniques additional ratios may be applicable.
For each of the headings listed above, your overview should:-
• Identify the name of the ratio used and interpretation of your results.
• Provide an explanation of why these ratios may differ between your companies, and how your company compares with other companies in your industry.
• Which company do you consider to be the better investment, and
• Explain your reasoning.
All formulae and calculations must be clearly shown.
[250 words maximum for each company] [30 marks]
GENERAL PRESENTATION [5 marks]
Bibliography All References
Complete / Alphabetical By Surname/ Proper Format
References Complete / Proper Format 2 marks
Format and Presentation
Report Format / Typed / Cover Page / Table Of Contents / Page Numbers / Spelling /
English Expression / Comparative Tables / Professional Presentation / Word Limit 3 marks
LATE PENALTY
??Please note that Late Penalty applies to assignments not submitted to your tutor in the last accounting class of the Week 13
Penalty of 10 % for each day late applies.
NO MARKS WILL BE AWARDED FOR SUBMISSIONS OVER 5 DAYS LATE 10%
penalty
SHAREMARKET REPORT MARKING GUIDE
PART 2 55 marks
(A) BRIEF DESCRIPTION OF THE COMPANY (10 marks)
• Product and services provided by the company – 2 marks
• Name of CEO – 1 mark
• Salary and number of shares – 1 mark
• Profit and loss after tax – 1 mark
• Latest dividend paid – 1 mark
• Size of the company by total assets – 1 mark
• Number of employees – 1 mark
• Share price – 52 weeks high and low – 2 marks
(B) USING EXCEL SPREADSHEET (10 marks)
• Prepare your own graph of the daily share price movement of each of your share. Should show columns for date and closing price (dollars). 5 marks
• Prepare your own graph of the daily movement of the ASX 200. Should show columns for date and closing value (point). 5 marks
(C) FOR EACH COMPANY (25 marks)
• Provide an overview of the share price performance and describe the overall trend of the Australian share market. 10 marks
o Company 1
o Company 2
o Company 3
• Describe how each shares performed against the ASX 200. 5 marks
o Company 1
o Company 2
o Company 3
• News article incorporate on the report
o Company 1 10 marks
o Company 2
o Company 3
(D) GAIN/ LOSS MADE ON PORTFOLIO (5 marks)
o Company 1
o Company 2
o Company 3
E) BUY/SELL /SOLD (5 marks)
• Recommendation, supported by relevant information from Part (C)
o Company 1
o Company 2
o Company 3
PART 3 35 marks
(A) KEY FINANCIAL DATA (5 marks)
• Consolidated figures
o Company 1
o Company 2
o Company 3
(B) RATIO ANALYSIS (30 marks)
• Identify the name of the ratio used and interpret the results. 10 marks
o Company 1
o Company 2
o Company 3
• Provide an explanation of why these ratios may differ between your companies.
10 marks
o Company 1
o Company 2
o Company 3
• Which do you consider to be a better investment? 5 marks
• Explain your reasoning. 5 marks
GENERAL PRESENTATION (5marks)
• Bibliography/References 2 marks
• Format and Presentation 3 marks
PART 1 (5 marks)
TOTAL MARK /100
Convert to 20%________
Presentation Component - Due Date Week 13
Your presentation should be an over view of your findings for your company during the tracking period – not a summary of your report
The presentation should run for a minimum of 8 minutes and a maximum of 10 minutes
Familiarise yourself with the marking guide below for the presentations. Ensure that you allocate your time against the marks for each criteria component. For example do not spend 3 minutes on your introduction, when it is only worth 5 marks.
As a Guide, 70 marks is allocated to your Introduction, Content, Conclusion and Recommendation.
If Introduction is worth 5 marks –1 minute should be allocated
If Content is worth 50 marks - 7 minutes should be allocated
If Conclusion and recommendation is worth 20 marks – 2 minutes should be allocated.
If you are prepared and have practiced your presentation, you should stay within the time limit
Remember, to achieve the time limit you must understand what you have submitted in your reports, and then deliver an informative analytical interpretation of your findings,
UNIT OF STUDY: ACCOUNTING WDB 1001
CRITERIA CGA POSSIBLE MARK
1. Introduction
? How well structured was the INTRODUCTION 4,5 5
? How acceptable professionally was APPEARANCE and BEHAVIOUR of the student? 3,5 5
10
2. Content
? How well did students describe their findings? 2,3 15
? How well did the students show that they understood the nature of the issues being investigated? 2,3 15
? How clearly did students understand the movement in the share price, by providing detailed explanation 1,2,3 20
50
3. Conclusions & Recommendations:
? How clearly did the students express their conclusions in relation to the overall viability of each company 1,2,3,4,5 10
? How reliable were the student recommendations (supporting argument) regarding buy/sell/hold 1,2 10
20
4. Presentation, Delivery & Design:
? How clearly did students define & explain their task ? 2,4 3
? How organised, enthusiastic and interesting were the students in delivering their presentation? 2,3 3
? How well did students respond to questions and resolve issues during their presentation? 1,3 3
? How effective was their use of design and other aspects (such as animation) in their presentation ? 1,2,3 3
? Tone of voice and speed of delivery. Could it be heard and understood 3 2
? How well did the students use cue cards (did not read from the overheads), and eye contact with audience 3 3
? What is your assessment of the overall impact of the presentation? 3
20
100
CORE GRADUATE ATTRIBUTES (CGA):
1. effective problem solver in a range of settings
2. can locate, evaluate, manage and use information effectively
3. communicates effectively
4. can work both autonomously and collaboratively
5. can work effectively in settings of social and cultural diversity
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