This assignment is to be based on an Australian listed company chosen by the group from the list below:
• Blackmores Limited (ASX Code: BKL).
• Slater and Gordon Limited (ASX code: SGH) )
• Domino’s Pizza Enterprises Limited (ASX Code: DMP)
• MG Unit Trust (ASX Code: MGC)
• Bellamy’s Australia Limited (ASX Code: BAL)
The assignment is to be completed in teams of up to four students. There is no requirement for students to be in the same tutorial group. The aim of this group assignment is to foster your ability to research, critically analyse the company financial information and integrate knowledge and skills learnt in BAFN200 to analyse a real company. A further aim is to improve your written communication skills and team-working skills.
Remember, before you attempt questions, it is essential that you familiarise yourself with the company and its financial statements.
You are required to answer the following questions with respect to your chosen company:
• Examine the share price history and history of traded volumes over the past five years, identifying the main causes of changes in the share price during this period. Based on its stock price, do you think the company has performed well over the past five years?
• Calculate the market capitalisation of the company as of the end of fiscal year of 2016. Do you think the stock is under-priced or over-priced? Answer this question with reference to the capital asset pricing model (CAPM), and justify your answer. How do you estimate the future price of the stock? Is this the best time to buy or sell the company’s shares? Why?
• What is the mix of debt and equity financing? What types of debt and equity are currently used? Does current financing strategy highlight any impending risks? Critically evaluate the financing policy adopted by the company.
• If you had $10,000 savings, would you invest in this business? Why or why not? Discuss.
Instructions about the group assignment
Assignments must be submitted with an ACU cover sheet (The cover sheet may be submitted separately), and should:
• Be typed using one-and-a half (1.5) spacing left justified.
• Use Ariel or Times New Roman font size 12.
• Display a one inch margin on all sides.
• Appropriately cite reference original work, author(s) etc. Citation and referencing must conform to the Harvard System.
Your report should contain an introduction followed by answers to questions and a conclusion. Grading will be based on critical analysis of the issue, evidence of wide reading on topic, coherence in the development of arguments, use of appropriate evidence, and clarity of expressions.