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Assignment
FINM2001 Overview This assignment is to apply the concepts and theories in the corporate finance class and perform critical analysis for a company you picked using real market and financial data. You are expected to submit two individual reports during the semester. (See deadlines below.) The Task
If you use any data in the analysis, you should keep a copy of these data for verification purposes. However, you do not need to attach the data in your submission. Whenever possible, please relate your discussion to the specific situation of your firm – a general statement may not be sufficient. This is an essential requirement of the assignment. The format of your answer should be structured -- take the answer as a very short essay: there is a key point to start with, followed by some supporting evidence or arguments. You should keep you answer brief, but to the point. 2 Report 1 (total 15 marks) 1. Provide the following information about your company. a. (1 marks) Name, ticker symbol, industry, and business description b. (2 marks) What makes you become interested in this company 2. Use the information disclosed (for example, in the annual reports) to discuss the following questions. a. (4 marks) To finance their business activity, firms could use various sources of capital such as debt and equity. Provide a summary for the source of financing capital structure for your firm. This may include (but not limited to): book value of total debt, book value of total equity, and the ratio between these two (debt equity ratio). Note that some firms (not common) may not have any debt (zero debt firm). b. (3 marks) Compare the debt equity ratio of your firm with at least one other peer firm in the same/similar industry. What are the potential factors that drive the similarity or difference of debt equity ratio among firms in same/similar industry? Propose your explanations. c. (3 marks) Calculate the market value of equity, which is the total number of shares outstanding times the share price (preferably at the end of the finance reporting period). Calculate the ratio between book value of debt and market value of equity. This ratio could be very different from the ratio between book value of debt and book value of equity in question 2 (a). Provide a brief explanation for the conceptual difference. 3. Find beta coefficient on internet (from Yahoo Finance, for example). a. (2 marks) What is its magnitude? What does it imply? 3 Housekeeping issues 1. This assignment will be handled and marked by your tutor. Before the submission, it is important for you to join one of the tutorial groups. If there is issue related to joining groups, please email the RSFAS office at [email protected]. 2. Format: your submission should be a single MS Word file that follows the requirements below: a. Font: Times New Roman, size 12pts; Single line spacing; 2.54 cm margin to each side (A4 size) b. Page limit: Report 1: Two pages. (everything included) c. Due date: Report1: 17:00 31st March 2023(AEST) d. The file name is “uXXXXX your name tutorial group course code”. For example, your file name could be “u123456 Jack Brabham Tut01 FINM2001”. 3. Support and consultations: if you need any clarification during the writing of your assignment, please contact your tutor. Their contact information is available on the wattle website. Your tutors could provide clarification, in case there is any confusion. However, given this is part of the assessment, they could write the assignment for you in any way. 4. Submission: this assignment must be completed individually and submit using Turnitin in the wattle website. The submission deadline is 17:00 31st March 2023(AEST). You are strongly encouraged not to submit at the last minute to avoid potential crash of the wattle site. 5. Late submission: Unless there is a special arrangement, no submission after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded. Application for an extension should be filed before the deadline. Given that enough time has been provided to handle electronic submission, reasons such as computer crash or loss of USB would not be accepted for extension.