Corporate Finance

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Group_Assignment__-_Copy.docx

Group assignment

Specifications

· Figures/graphs/charts included in page limit Figures/graphs/charts included in page limit

· Font size 11, single line, Each page approx 500 words each, must leave space for graphs / figures and charts.

Executive Summary (200~300words)

Introduction (200~300 words)

Main business (200words) Comment by Author: I have put in bullet points, I will re write it later

Mosaic Brands Limited is an Australian Securities Exchange listed company.

Ticker Code is ASX: MOZ

Company recently changed its name from NONI B Limited ( Ticker code ASX: NBL)

Retail Apparel group

Brands include:- Millers, rockmans, Noni B, Katies, Rivers, Autograph, W Lane, Crossroads Beme

Bricks and Morter, and online stores. 1419 stores

Operates in Australia

ladies Fashion for older/ mature 55+ aged women

Listed 11 May 2000

Incorporated: in NSW on 18/06/1997 as Noni B.

Joe ( Ming- heng)

Unique Industry / firm features (200 words)

Zvliu

Competition (200~300 words)

JB: Similar Companies:( ticker codes)

JBH / PMV / SUL / APE / LOV

Yiyang

Potential Risk (300 words)

JB: recession fears, as consumers close their wallets , spend less

JB: there has been a change to aggressive discounting my many retailers this year,,, traditional sales discounting which starts from boxing day has started earlier, click frenzy, black friday etc… Not sure how this will impact their sales going forward

JB: Retail is traditionally a high volume, low gross profit margin business, if you find that the margins in this business are higher then this is an advantage...

Jo Baker

Listing venue of firm (1/2 – 1 page) : Comment by Author: I think this means the Australian Securities Exchange? ASX listed

Either ASX listed on,

Share registry will be ?

Zvliu and Yiyang Comment by Author: I think we need two of us to do the valuations , to see if we come up with similar answer and compare.

Estimate CAPM beta using historical data

Does beta makes sense? (1 page)

Compare the computed beta to that of peer firms (1 page)

Jo and Joe Comment by Author: Cap M is one way to value a company , but there are others,,, so we should do this too? re NPV? I think we can work together on this and see what we come up with

Analyse value of stock (1-2 pages)

All of us

How different is estimate from actual price (1 page) and why?

Should we invest in this company (1 page)

Joe ( Ming )

Bibliography (1 page) Comment by Author: As you are researching, just put your web link in here and we can write the bibliography later

https://www.asx.com.au/asx/share-price-research/company/MOZ

Research Info we may need Comment by Author: I have added information as I have found it , and the link the ASX... in case you need it...

Market Capitalisation as at 24.12.19 221.48M

Shares on issue 96 962 930 ordinary shares: and no options on issue accoreding to 3B Notice lodged on ASX site 20.12.19

Appendix 3B https://www.asx.com.au/asxpdf/20191220/pdf/44cs9vkpcgg68h.pdf

Teh company tax rate used is 30%

If using DDM valuation method

Dividends in 2019 were:-

0.055 cents per share ex div date 9 october 19; and .09 cents per share on 11 March Ex dividend date so total for year of 14.5 cents per sahre: this is net, the grossed up value to include franking credits is 20.71 cents per share.