FINC20018 Managerial Finance T1 2019
Assessment 2 – Practical and Written Assessment
Due date: Week 10, Friday 24 May 2019 @ 11:55pm
For on-campus students, the group means 2 students per group.
For distant learning (FLEX) students, while a group of 1 is likely to be more practical groups of 2 are optional.
The assignment is designed to assess your understanding of business finance theories and explores a number of areas within the course by applying your learning to a real company. Through this project, you need to be able to demonstrate critical and analytical skills in academic writing, various research synthesising skills and be able to communicate clearly and effectively.
Please note this is a finance assignment for real business, so make sure you have the appropriate combination of quantitative and qualitative analysis.
Format and referencing
Response to case study must be in Report Format and include an executive summary, table of contents, introduction, body with suitable headings and sub-headings, conclusion and wide variety of references.
Report fonts must be either Arial or Times Roman 12 pt and 1.5 spacing for narrative, 16 pt bold for major headings and 14 pt bold for sub-headings.
Word count is 2,000 words maximum (excluding tables, formulae, reference list and appendices)
Inclusion of diagrams and tables to support the response is strongly encouraged.
Proper referencing of all content including figures, tables and narrative using APA Reference system.
Demonstrations of using your initiative and supporting your answers with interesting references to contemporary issues from newspapers, journals, professional publications, web resources i.e. extracts from podcasts, financial institutional websites etc. Wikipedia and Investopedia are not recommended to be used as sources.
Online submission, must be submitted as a word document. PDF submissions will not be accepted.
For on-campus students this is a group assignment, only one member of the group will submit the assignment online by uploading to the Moodle (DO NOT use turnitin to check similarity for the draft work, and the second person in the group submit the final assignment – this will result in a very high similarity score and penalty will apply)
Issues that will affect your marks include:
Create your own cover sheet with the names of the students in the group clearly indicated.
Do not include the marking criteria or rubrics or marking sheet in your assessment. Your grader will include a separate feedback and marking sheet after they have graded your assessment in Moodle.
The word limit is approx 2000 words in total, 5% leeway above or below is acceptable, if you exceed the word limit significantly marks will be deducted.
Turnitin will be used to check percentage similarity. Do not copy the questions from the assignment, as this will increase your percentage similarity.
Where copying from other sources results in high percentage similarity, marks will be deducted. Therefore, proper use of in-text referencing is important. Avoid direct quotes.
If percentage similarity exceeds 20%, marks will be deducted based on a progressive scale as determined by the course co-ordinator.
Under extreme circumstances where high % similarity indicates copying from written works of other students in CQU, other universities or any other institutions world-wide, the assignment will be reviewed by the academic misconduct board.
Penalty for the late submission is 5% per calendar day including Saturday and Sunday.
A marking rubric will be provided in a separate Excel file.
First select a company listed on the ASX. In selecting the ASX company the following needs to be observed:
1. the company must be currently listed on the ASX, not the suspended or delisted ones,
2. sufficient data for the company can be accessed (including financials for the last 3 years, the financials shall not be prior to 2015),
3. there are over 2,000 companies listed on the ASX, thus your graders expect that it is unlikely two groups will be investigating the same company. It is the graders expectations, that we see analysis of a variety of different companies from the different groups covering different dates. The information for writing up the assignment can be sourced from:
1. the company’s last 3 years’ annual reports which will include the financial statements (use the consolidated balances in the financial reports) and the Chairman/Managing Director’s report. This will provide the internal perspective of the company, and
2. media reports. This will provide the external perspective. The selected key financial concepts and theories to relate to the financials of the chosen company shall include;
1. time value of money,
2. risk and return,
2. sources of finance: equity and debt,
3. dividend payout policy . Your group’s report could be structured in a format that essentially addresses the following;
1. Introduction – briefly explain the principal activities of the company, the profile of the industry/industries that the company operates in, the major competitors, the company goal etc.
2. Risk profile – identify and discuss any systematic and unsystematic risks that the company faces.
3. Overall financial performance – evaluate, interpret and criticize (if necessary) the company’s financial performance over the review period.
4. Time value of money – conduct research on the company and identify the link between the company’s financial situation and the concept of time value of money, apply time value of money techniques learned in class to analyse the company’s financial situation where is relevant and justify the company’s financial decisions where is appropriate.
5. Sources of finance – identify the company’s sources, types, costs and composition of finance used to fund the operations and balance sheet. Analyse, comment and criticise (if warranted) the company’s decision in adopting this financial mode.
6. Payout policy – outline, analyse and interpret the company’s payout policy over the review period. How is this payout policy compared (a) to that of its major competitors, and/or (b) to that of the industry (c) that of the general market, and/or (d) to all other forms of alternative investments available in the local or international economy?