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FINM7007
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
From a list of the S&P/ASX 300 index member companies (see the Excel spreadsheet attached),
pick a company (your company) and answer the following questions. To support your analysis,
you could obtain information about these public firms from the following (non-exclusive)
sources.
Company website, including annual reports disclosed.
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 10 marks)
1. Provide the following information about your company.
a. (3 marks) Name, industry, and a brief business description
b. (1 marks) What makes you interested in this company?
2. Use the public information disclosed (for example, in the company’ annual reports) to
discuss the following questions.
a. (3 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.
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: One page. (everything included)
c. Due date: Report1: 17:00 1st September 2023(AEST)
d. The file name is “uXXXXX your name tutorial group course code”. For
example, your file name could be “u123456 Le Zhang Tut01 FINM7007”.
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. You could also post general question on the discussion forum of the wattle
site.
4. Submission: this assignment must be completed individually and submit using Turnitin
in the wattle website. The submission deadline is 17:00 1st September 2023(AEST).
You are strongly encouraged not to submit at the last minute to avoid potential
crash of the wattle site.
5. Late submission: as per class summary, no late submission of assessment tasks will be
permitted. If an assessment task is not submitted by the due date, a mark of 0 will be
awarded.