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Assessment 2 (Case Study)
Question 1
What is the name of the company that you/your group members were assigned for this project? In which industry does your company operate? What is the management’s view on the future outlook and performance of the company?
[0+1+1=2 Marks]
Question 2
Assume you are analysing the financial statements of your allocated company for the year 2023, where can you find the information to examine its performance? How would you comment on the performance of this firm for the year 2023? What additional information do you need to draw a reasonable conclusion about the performance of the firm?
[1+1+1=3 Marks]
Question 3
Identify two pieces of information not included in the major financial statements (but still within the annual report) that you think would be important to someone considering investing in the company. Discuss your reasons for believing that this information would be important in making an investment decision.
[1+1=2 marks]
Question 4
Using the latest annual report of your allocated firm, analyse the revenue streams of the firm as disclosed in its income statements. Discuss the primary sources of revenue for the company and any noted trends or changes from the previous fiscal year. Examine the structure of the balance sheet for the firm. Highlight the major categories of assets and liabilities, noting any significant components or unusual items.
[2+2=4 Marks]
Question 5
Analyse investing and financing activities of your allocated firm for the year 2023 as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Evaluate the cash flow from operating activities of the firm. Specifically analyse whether the company is performing better over the years. Discuss whether the cash flow from operating activities appears to be satisfactory, given the current business environment and the firm’s stage in its life cycle.
[1+1+2=4 Marks]
Part B: Evaluation and Recommendation (35 marks)
Part B is focused on the valuation and investment recommendation for a publicly listed company. This part requires students to employ various valuation methods to estimate the company's value.