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COMM1140 Financial Management
Group Assignment
Instructions:
The group assignment is worth 25% of the total assessment for this course. In your week 4 tutorials,
your tutor will randomly divide you into groups. Each group will be allocated one of the below
companies, which you must use to complete the task below (hereafter, ‘assigned company’). The
2023 annual report of your assigned company must be used to complete this assessment. For
comparative purposes, you may also use other relevant annual reports or public information.
1. Michael Hill International Limited
2. Lovisa Holdings Limited
3. The Star Entertainment Group
4. SkyCity Entertainment Group
5. Event Hospitality and Entertainment Limited (now known as EVT Limited)
Assignment:
All Australian businesses are currently facing uncertain trading conditions. High inflation and labour
shortages have created sudden cost pressures and forced businesses to pass on cost increases to
their customers. Additionally, rising interest rates pose a growing risk to businesses that have
accumulated high levels of debt and increase the likelihood of a global recession occurring in the
next 12 months.
You are a UNSW Commerce graduate in 2022 who quickly found employment in Felicity Trust, a
financial services company that specialises in providing loans to large Australian businesses. Your
manager has asked you to prepare a presentation to help Felicity Trust decide whether it should
continue lending money to your assigned company. This is the first task your manager has asked
you to complete independently, and you want to ensure that you impress! Luckily, you took notes
when the task was assigned to you, which should be strictly followed to complete this task.
The notes are as follows:
Question 1: Present a description of the business and the nature of its operations. This should
focus on providing a short explanation of the business’s history, how it generates revenue, and
who forms its customer base (5 Marks);
2
Question 2: Present a financial statement analysis of the financial performance and financial
position of the company (35 Marks);
Question 3: Identify one risk from reading the reports prepared by key management personnel
(i.e., Board Chair and/or CEO) in the 2023 annual report that may impact the company’s future
financial performance and/or financial position. You should explain clearly how the risk you identify
could affect the ratios discussed in Question 2 above (10 Marks);
Question 4: Using two Firm Multiples and two Equity Multiples of three similar companies to your
assigned company (30 Marks):
a) Compare your allocated company with 3 similar companies and determine which one is
the most similar. For the company that is most similar, provide supporting evidence and
references of the comparison and state any assumptions (if any) you are making for this
comparison. (10 marks)
b) Calculate a range and mid-point (average) valuation of your allocated company’s
outstanding equity (both the market capitalisation value and market share price) based
on the 3 similar companies. Provide evidence of data collected with proper referencing
and calculations to substantiate your valuation. (10 marks)
c) Based on the comparison in part (a), explain from part (b) the reasons for the width of the
range in valuation and why you think the mid-point valuation is accurate or not. Provide
evidence and the sources of the evidence that support your explanation. Based on this
explanation, give a simple but educated guess about the percentage you would adjust up
or down the mid-point valuation to something more reasonable. What would that new mid-
point valuation be? (10 marks)
Question 5: Present a short description of whether you would recommend Felicity Trust to continue
providing loans to your assigned company in the short term. You should clearly describe how and
why you came to this decision. (5 marks)
Submission Requirements
Three separate submissions are required as part of this assignment, as outlined below.
1. Group Contract
All groups must complete a group contract that sets expectations as to how the assignment will be
completed.
The total maximum grade for the group contract is 2 marks.
Submission Requirements:
One member of each group should email a completed group contract to your tutor by 5 pm on
Monday, July 1st (Week 6). All group members should be cc’d on the email. Late submissions will
be subject to the penalties outlined below.
3
2. Video Submission
To answer Questions 1-4, you should prepare a 15 minute pre-recorded video presentation,
clearly following the submission requirements set out below. An additional 5 marks are available for
the following:
a. Structure of the presentation, professionalism and timing. (2.5 Marks)
b. Use of Visual Aids. (2.5 Marks)
The total maximum grade for the video submission is 85 marks.
Submission Requirements:
One member of each group will be required to submit your pre-recorded 15 minute video
presentation via the dedicated submission link on Moodle by Wednesday, July 24th at 5 pm (Week
9). Late submissions will be subject to the penalties outlined below.
3. Tutorial Presentation
To answer Question 5, you must prepare and present a 3 minute presentation in your Week 10
tutorial, clearly following the submission requirements set out below. An additional 8 marks are
available for the following:
a. Structure of the presentation, professionalism and timing (2 Marks)
b. Quality of responses during your presentation and your questions when critiquing an
allocated peer group (6 marks)
The total maximum grade for the tutorial presentation is 13 marks.
Submission Requirements:
Each group is required to designate one group member who will be responsible for emailing your
presentation to your tutor before your tutorial in week 10. You must include a cover sheet with this
submission, which lists the names and Z-ids of all members of the group. This cover sheet can be
found on the COMM1140 Moodle site. The designated group member must submit this file on behalf
of the entire group.
Late Submission Policy
Late submission will incur a penalty of 5% per day or part thereof (including weekends) from the due
date and time. An assessment will not be accepted after 5 days (120 hours) of the original deadline
unless special consideration has been approved.