Accounting decision Making in the Sharemarket
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accounting_assignment.docxMAJOR ASSIGNMENT … DECISION MAKING IN THE SHAREMARKET
Choose only one company below as this is a group presentation for myself and my partner.
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Group |
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Myer Holdings Ltd |
MYR |
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Qantas Airways Ltd |
QAN |
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Wesfarmers Ltd |
WES |
Financial Information and links to these companies may be accessed through www.asx.com.au
PART 1 SHAREMARKET ASSIGNMENT SHEET - complete and submit sheets
Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to $10,000 worth of shares for group of 2 students based on the closing share prices posted on the ASX website.
PART 2 COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION [55 marks]
[A] A brief description of each company in your team’s portfolio. It should be presented as a comparative table and should include:-
· Products And Services Provided By The Company [brief outline]
· Name Of Chief Executive Officer [or Managing Director]
· Salary of Chief Executive Officer [or Managing Director]
· Profit / Loss after Tax from 2015 Annual Report for the full financial year – consolidated figures
· Latest Dividend Paid – Dividend Per Share and Date Paid
· Size Of The Business By Total Assets – from 2015 Annual Report – consolidated figures
· Number Of Employees
· Share Price – 52 week High And Low on 22 April 2016- from The Age Business section link below:-
http://markets.theage.com.au/apps/qt/index.ac
[100 word maximum for each company] [10 marks]
[B] For the tracking period only, using an Excel spreadsheet, prepare your own graph of the daily share price movements for each of your shares. Information should be shown in a table with separate columns for Date and Closing Price ($).
For the tracking period only, using an Excel spreadsheet prepare your own graph of the daily movement of the ASX200 Index. Information should be shown in a table with separate columns for Date and Closing Value [points]. Copy and Paste Excel Tables and Graphs into a Word Document to include in your report. [10 marks]
[C] For each company, provide an overview of the share price performance and describe the overall trend of the Australian share-market over the tracking period. Describe how each of your shares performed against the ASX200 Index. Explain major movements in your share prices and the share-market with evidence from newspapers, business magazines, internet information or other relevant sources. Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. See “Harvard Referencing” links on BAO1101 website.
[250 word maximum for each company and comparison with the ASX200 Index] [25 marks]
[D] Calculate the Gain or Loss made on your portfolio during the tracking period. [5 marks]
[E] Provide a recommendation [buy / sell / hold] for each of your shares.
Support each recommendation with relevant information you have found in Part [C].
[50 words maximum for each company] [5marks]
PART 3 – IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS [35 marks]
[A] IDENTIFICATION OF KEY FINANCIAL DATA
For each company you have selected, complete the following table of Key Financial Data.
Find the figures from the 2015 Annual Report with results for the full financial year for 1 July 2014 to 30 June 2015
The “consolidated” figures are required.
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Company 1 |
Company 2 |
Company 3 For Teams of 3 |
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Revenue / Sales |
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Interest Expense |
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EBIT |
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Net Profit Before Tax |
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Net Profit After Tax |
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Current Assets |
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Total Assets |
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Current Liabilities |
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Total Liabilities |
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Total Equity |
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References are required to identify the source of all figures in your table.
Attach Consolidated Income Statement and Balance Sheet for each company with relevant figures highlighted.
This must be included in the appendix of your report. [5 marks]
[B] RATIO ANALYSIS
From the Key Financial Data, calculate relevant ratios provide an overview of each company’s:-
*Profitability *Stability *Liquidity
At least 6 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each company’s Financial Statements.
For each of the headings listed above, your overview should identify the name of the ratio used and interpret your results. Provide an explanation of why these ratios may differ between your companies. Which do you consider to be the better investment? Explain your reasoning.
All formulae and calculations must be clearly shown. [250 words maximum for each company] [30 marks]
GENERAL PRESENTATION
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Bibliography References other than textbook and Subject Resource Workbook Complete / Alphabetical By Surname/ Proper Format References Complete / Proper Format |
5 marks |
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Format and Presentation Report Format / Typed / Cover Page / Table Of Contents / Page Numbers / Spelling / English Expression / Comparative Tables / Professional Presentation / Word Limit |
5 marks |
BONUS INCENTIVE / LATE PENALTY
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Bonus Incentive … submitted in week 9 beginning 02 May 2016 This will not apply to incomplete or below standard assignments. |
10% bonus |
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Late Penalty ... submitted after week 10 beginning 09 May 2016 for each day late. The standard penalty for late submission without an approved short extension will be 5% of the total possible mark per working day. If submission is overdue by more than ten (10) working days the work will not be assessed. |
5% penalty |
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PART 2 |
Required |
Marks |
Result |
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A |
Description Of Each Company |
10 |
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B |
Graph Of Share Prices |
10 |
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C |
Overview Of Share Price Performance |
25 |
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D |
Calculation Of Gain Or Loss On Portfolio |
5 |
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E |
Recommendation On Share Portfolio |
5 |
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TOTAL |
55 |
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PART 3 |
Required |
Marks |
Result |
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A |
Key Financial Data – Table |
5 |
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B |
Ratio Analysis |
30 |
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TOTAL |
35 |
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GENERAL PRESENTATION …
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Referencing – using Harvard References other than textbook and Subject Resource Workbook Complete / Alphabetical By Surname/ Proper Format |
5 marks |
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Format and Presentation Report Format / Typed / Cover Page / Table Of Contents / Page Numbers / Spelling / English Expression / Comparative Tables / Professional Presentation / Word Limit |
5 marks |
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TOTAL MARKS |
100 |
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FINAL MARK OUT OF 100 |
100 |
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► CONVERSION TO 15% OF ASSESSMENT |
15 |
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PART 2 – COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION … [ Total 55 Marks ]
[A] Description Of Each Company [ 5 marks for each company * ] 10 marks …
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1. Products And Services |
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2. Name Of Chief Executive Officer [or Managing Director] |
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3. Salary of Chief Executive Officer [or Managing Director]* |
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4. Profit / Loss After Tax from 2015 Annual Report – consolidated figures |
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5. Latest Dividend Paid – Dividend Per Share and Date Paid |
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6. Size By Total Assets – 2015 Annual Report – consolidated figures |
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7. Number Of Employees * |
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8. Share Price 52 week High / Low – 22 April 2016 from The Age Business link |
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Total Marks |
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* [0.5 marks for points 1 to 8 = 4 marks] + [*extra 0.5 marks each for point 3 salary and point 7 no. of employees]
[B] Graphs - Share Prices and ASX200 [2.5 marks * 3 graphs] +2.5 Presentation 10 marks…
Students are required to prepare their own graphs using Excel
Students should include all prices per week.
Graphs should have appropriate labels and scales.
Marks should be subtracted for graphs that are hard to read and interpret.
Table with share prices of each company and ASX200 dates and value should be included
[subtract 2.5 marks if table with share prices and ASX200 dates and values not included]
[C] Overview Of Share Performance / Trend of Share-market 25 marks…
[300 word maximum for each company and comparison with the ASX200= 600 words]
Description of the share price performance over the tracking period
Description of the overall trend of the share-market
Comparison of share performance with the ASX200
Evidence of research on the share price to be included in the appendix / bibliography
[at least one relevant article for each company – scanned and neatly presented]
Analysis and interpretation of the evidence
[D] Calculation Of Gain / Loss On Portfolio 5 marks…
Calculations for each share should be clearly shown as well as a portfolio total.
[E] Recommendation On The Share Portfolio [50 words each company = 100 words] 5 marks…
Allocate up to 2.5 marks for a basic recommendation with some logical support
PART 3 – IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS… [ Total 35 Marks ]
[A] KEY FINANCIAL DATA ** 5 marks …
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Revenue / Sales |
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Interest Expense |
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EBIT |
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Net Profit Before Tax |
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Net Profit After Tax |
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Current Assets |
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Total Assets |
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Current Liabilities |
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Total Liabilities |
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Total Equity |
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** [0.2 marks for each item * 20 = 4 marks] + [Reference / Source of Information = 1 mark]
[B] RATIO ANALYSIS [250 word maximum for each company] ... mark should reflect quality of answer
Overview of each company’s
· Profitability
· Stability
· Liquidity
Identify the name of ratio used and interpret results. 10 marks …
At least 6 ratios in total should be used for this overview.
Additional marks for extra initiative. 5 marks …
For each ratio, explain why they may differ between your 2 companies. 5 marks …
Identification of which company to be the better investment / explain reasoning 5 marks …
All formulae and calculations must be clearly shown. 5 marks …
