Assessment Title Research on Financial market and Capital Budgeting Analysis
Purpose of the assessment (with ULO Mapping)
Students are enrolled a group up to 4 members to study, undertake research, analyse and conduct academic work within the topics of financial management from week 1 to week 9. (ULO 1, 2, 3 and 4)
Weight 40 % of the total assessments
Total Marks 40
Word limit Not more than 3,000 words
Due Date Final Submission of Group Assignment and Presentation: 11:59 pm Sunday, Week 10
All work must be submitted on Blackboard by the due date along with a completed assignment cover page. Make sure that your group member’s name and surname, student ID, unit name, and code and lecture’s name are written on the cover sheet of the submitted assignment. A table of contribution by group members into group work is also to be provided in the cover page (please see the assignment cover page attached).
The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.
Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style.
Submitted work should be your original work showing your genuine studying.
Evidence of your original work (allocation of tasks, discussion, file exchanges, drafts, etc.) need to be presented in the records of your group work in Discussion Board or Group Blogs, available in Group Tools in your Group for Group Assignment. Your assignment WILL NOT BE MARKED without the evidence of your group work.
Read Academic Integrity to ensure that your assignment is misconduct free. Three attempts of submission are allowed for checking similarity and final submission. Only final submission is marked. As a guide, a similarity score of over 30% is considered as excessive except in the cases where the similarity is caused by the use of template provided by the lecturers, specific types of assignment, references or sources of data. Please note that it takes 48 hours for the self-check report to be available for your viewing. Please also note that fact findings and working at same case study project evaluation assignment like this one may yield higher than 30% similarity. Therefore, do not panic and send emails to your lecturers and Unit Coordinator about high similarity after your submission if your work is genuine. Markers and Unit Coordinator will look at details of the similarity report and ensure a proper marking without any bias on that threshold 30%.
When you submit your assignment electronically, please save the file as ‘Group Assignment- your group name.doc’. You are required to submit the assignment at Blackboard/Assessments/Group Assignment Information/Group Assignment and Submission Link. Always keep an electronic copy of your original file until you have received the final grade for the Unit. Please make sure that you submit the correct file in the correct format that is readable in Black Board. ANY APPEAL RELATING TO SUBMITTING WRONG FILES AND WRONG FORMAT AFTER THE DEADLINE WILL NOT BE CONSIDERED.
This assignment task is a written report that include 3 parts: Part 1 is a research and fact finding on Australian financial market. Part 2 is a fact finding of financial market trading practices and regulation in Australia. Part 3 is risk analysis and project evaluation. To complete the assignment, groups are recommended to obtain data and information from relevant web sites, especially websites of Australia Stock Exchange: www.asx.com.au; Australian Securities and Investment Commission: https://asic.gov.au/ for their research and fact finding. Using secondary data (researches done by others) for fact findings in Pat 1 and Part 2 is NOT RECOMMENDED and will be PENALIZED. Please also note: group assignment for HI5002 is DIFFERENT every trimester. Attempt to submit a PREVIOUS TRIMESTER ASSIGNMENT or A WRONG ASSIGNMENT will get a ZERO (0) mark without any consideration for resubmission. Students are required to sit the Interactive Tutorial Session in Week
9 for training on how to do the group assignment with correct capital budgeting technique, proper format, structure, calculation tables and terminology. Any assignment with different technique, improper format, structure, calculation tables and terminology will be given zero mark.
The assignment should cover the contents described bellows.
Assignment Structure and Details of Assignment Tasks
Briefly introduction of your group’s work: the purpose of assignment, key findings and structure of the assignment (not more than 300 words)
Part 1. Research and fact finding of Australian financial market
1.1 Comparison of three essential types of businesses in Australia: use the following criteria and organize your comparison in a relevant table:
1) Owner/s of businesses
2) Level of difficulty in setting up the business
3) Life the business (limited or unlimited)
4) Liabilities of owners over the business’s debts
5) Legal status of business
6) Level of difficulty in mobilizing funds
7) Level of difficulty in business transfer.
1.2 Analysis of five basic principles of finance: Define the five basic principles finance and justify your analysis by illustrating examples: Choose one or more events described by media (CNN Business, Financial Times, Dow Jones financial news etc.) about companies and financial market. Analyse that event (s) applying the five basis principles of finance. Note: Each principle is to be illustrated by at least one event. The events should be in 2020.
Example of an event in media that reflect one of five basic principle of finance:
“The biotechnology company Moderna said Tuesday that its vaccine, developed in partnership with the National Institutes of Health, has been found to induce immune responses in all of the volunteers who received it in a Phase 1 study. Moderna coronavirus vaccine shows ‘promising’ safety and immune response results in published Phase 1 study, but more research is needed The early results are the first for a US vaccine candidate to be published in a peer-reviewed medical journal, in this case the New England Journal of Medicine. The news sent shares of Moderna skyrocketing nearly 18% in premarket trading. Later this month, the company is expected to begin a large Phase 3 trial, the final stage before regulators decide whether to approve the vaccine.”
Source: Julia H. 2020, The world loves the US dollar. Trump and the pandemic could change
This article paragraph clearly shows the principle: Market price reflects information. Please note that this is just an example of relevant event on media for your analysis. To meet the requirement of this assignment question, you will need to analyse your selected event and justify why and how a basis principle of finance apply to that event.
Part 2. Fact Finding of Australian financial market trading practices and regulations
2.1 Fact finding of the trading on ASX
Assuming your group is working for an institutional investor that is considering to trade actively on ASX in the near future. Go to the website of Australian Stock Exchange (ASX), do a fact finding to answer the following questions:
(1) Identify at least 5 types of information the public companies provide on the area of
Previous Trading Day Announcement.
(2) How are the dividend released by the public companies listed on ASX. Briefly explain the concepts of ex-dividend date, record date, date payable, dividend franking and type of dividends by the companies listed on ASX.
(3) Name 7 types of trading reports listed in ASX 24 Reports. Briefly describe the content of each report.
(4) How many types of calculators available on ASX website for the usage of investors and practitioners? Name them and explain the usage of each calculator.
(5) What are the questions you should ask your broker before you start trading?
2.2 Fact Finding of financial market regulator in Australia
Assuming after graduation you would like to apply for a position at ASIC. Go to the website of Australian Securities and Investment Commission, do a fact finding and answer the following questions:
(1) What are the ASIC roles?
(2) Who and what ASIC regulate? (3) What are the powers of ASIC?
(4) If a business approaches you to ask about procedures for providing credit activities, what kind of license you would advise them to apply for and what are the steps they should consider to decide whether they should apply for that license?
(5) What is book up practice in Australia, briefly explain.
Part 3: Risk analysis and project evaluation
3.1 Perform a scenario analysis on the data provided
Case Study: Assume that the company, where you are working as a team in Financial
Department, is considering a potential project with a new product that is expected to sell for
an average price of $22 per unit and the company expects it can sell 650 000 unit per year at this price for a period of 4 years. Launching this project will require purchase of a $3 500 000 equipment that has residual value in four years of $500 000 and adding $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below:
Depreciation method: straight line
Variable cost per unit: $17
Cash fixed costs per year: $450 000
Discount rate: 10%
Tax Rate: 30%
Do a scenario analysis with cash flows of the assumed project to determine the sensitivity of the project’s NPV to different scenarios that are defined in terms of the estimated values for each of the project’s value drivers. Please work on two scenarios corresponding to the worst- and best-case outcomes for the project. You need to provide your results in (a) relevant tables:
Worst case: Unit sales decrease by 20%; price per unit decreases by 20%; variable cost per unit increases by 20 %; cash fixed cost per year increases by $100 000
Best case: Unit sales increase by 20%; price per unit increases by 20%; variable cost per unit decreases by 20%; cash fixed cost per year decreases by $100 000
Based on the scenario analysis outcome, draw relevant conclusion about project NPV’s
3.2 Perform an NPV break-even analysis
Perform an NPV break even analysis for the case where price per unit decreases by 20 % to identify the number of unit sales that is needed for the project to get break-even
Trial and error method is to be used with excel spread sheet.
Summarize the outcomes of your group’s works (not more than 300 words)
Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.
Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.
Table 1: Six categories of Academic Integrity breaches
Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self- plagiarism.
Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised.
Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
Impersonation Falsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsification
Manipulating or inventing data with the intent of supporting false conclusions, including manipulating images.
Source: INQAAHE, 2020
Marking criteria Weighting
1. Research on Australian financial market
1.1.Compare three essential types of businesses in Australia 5%
1.2.Analysis of five basic principles of finance: 5%
2. Fact Finding of Australian financial market
2.1. Fact finding of the trading on ASX 5%
2.2. Fact Finding of financial market regulator in Australia 5%
3. Risk analysis and project evaluation
3.1. Perform a scenario analysis with data provided 10%
3.2. Perform an NPV break-even analysis 8%
4. Academic writing: Presentation, structure and academic writing 2%
Total weight of written report 40%
Faculty of Higher Education
Group Assignment Cover Sheet
Complete this and attach as a front cover sheet to your Blackboard submission, We certify that:
1. This assignment is our own work. We have acknowledged and disclosed any assistance received in its preparation and cited all sources from which data, ideas, words
(whether quoted directly or paraphrased) were taken, where it is applicable
2. This assignment was prepared specifically for this unit only.
3. The reference list is truthful and accurate and in Harvard referencing style.
Student name and ID
Campus and Interactive Tutorial Group Number
Lecturer Which section(s) did each person work on
HI5002 Finance for Business Group Assignment T2 2020