DECISION MAKING IN THE SHAREMARKET;

This assessment accounts for the following proportion of marks for this unit
15 %
LEARNING OUTCOMES BEING ASSESSED
1. Understand how to use accounting information for decision making.
2. Critically analyse the impact of company information on share price in the Australasian context.
3. Understand the sharemarket activities and financial analysis.
4. Gain practical experience in share-market activities, making decisions and monitoring the sharemarket.
5. Demonstrate knowledge of sharemarket activities and evaluate the impact of the share price on the total value of a share portfolio.
SUBMISSION INSTRUCTIONS:
Assignment teams will be organised in Week 2 of your tutorial.
Exchange contact details once your team has been formed and it is your team responsibility to maintain regular contact.
PART 1
You will be required to work with the team members to complete Part 1 – Share Selection Sheet shown on page 5 and 6.
Each student in the team is required to complete an Individual Submission shown on page 7 to explain your choice of company.
One copy of the Share Selection Sheet is to be completed and submitted for your team.
Please attach to this your Individual Submission and submit to your tutor in your Week 4 tutorial.
PART 2 and 3
You are required to work closely with your team members on these major parts of the assignment.
One assignment is required to be submitted on behalf of your team.
Attach to the front of your assignment an Assessment Declaration signed by each member and be aware of its content shown on page 12.
Each team member is expected to contribute equally to the assignments as the same mark will be given to each team member.
Marking Scheme is shown on pages 8 to 11 to inform you on how you will be marked so that you can maximise your assignment mark.
SUBMISSION DEADLINE:
SUBMIT TO TUTOR IN TUTORIAL: Part 1 Week 4 Beginning 16 March 2015
SUBMIT TO TUTOR IN TUTORIAL: Part 2 and 3 Week 10 Beginning 4 May 2015
DETAILED DESCRIPTION OF ASSIGNMENT – see pages 3 to 7
3
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 1 / 2015
MAJOR ASSIGNMENT … DECISION MAKING IN THE SHAREMARKET
SUBMIT IN TUTORIAL : Part 1 Week 4 beginning 16 March 2015
SUBMIT IN TUTORIAL : Part 2 and 3 Week 10 beginning 4 May 2015
Group 1 Group 2
Toll Holdings
TOL
Super Retail Group
SUL
Seek
SEK
Flight Centre
FLT
Commonwealth Bank
CBA
Wesfarmers
WES
Financial Information and links to these companies may be accessed through www.asx.com.au
PART 1 SHARE SELECTION SHEET – complete and submit sheet on p.5 to p.7
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 or $15,000 worth of shares for group of 3 based on the CLOSING SHARE PRICES posted on the ASX website on Friday 13 March 2015. Check after 6pm to ensure that the latest price has been updated.
During the tracking period, Friday 13 March 2015 to Friday 17 April 2015, your team is to monitor the performance of the shares and the overall performance of the Australian sharemarket. Can you maximize the value of your share portfolio?
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 or Number of Shares held by Chief Executive Officer [or Managing Director]
? Profit / Loss after Tax from 2014 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 2014 Annual Report – consolidated figures
? Number Of Employees
? Share Price – 52 week High And Low for 17 April 2015 – 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 [dollars].
For the tracking period only, using an Excel spreadsheet prepare your own graph of the daily movement of the ASX 200 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 ASX 200 Index. Explain major movements in your share prices and the sharemarket with evidence from newspapers, business magazines, internet information or other relevant sources. Evidence should be included and news articles should be scanned (see pp. 21 to 24 of your Subject Resource Workbook) and neatly presented in an appendix to your report. Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. See “Harvard Referencing” and “Plagiarism” under User Links on BAO1101 website.
[250 word maximum for each company and comparison with the ASX 200 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]
4
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 2014 Annual Report with results for the full financial year for 1 July 2013 to 30 June 2014 The “consolidated” figures are required.
Company 1 Company 2 Company 3 For Teams of 3
Revenue / Sales
Interest Expense
EBIT
Net Profit Before Tax
Net Profit After Tax
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Total Equity
References are required to identify the sources of all figures in your table. Attach copy of the Income Statement and Balance Sheet and highlight the figures you have used to verify your source of information. [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.
Refer to your Subject Guide p.122 to p.124 for formulae and interpretation.
Please note that Topic 4 – Ratio Analysis and Interpretation will be covered in lectures in Week 8.
All formulae and calculations must be clearly shown. [250 words maximum for each company] [30 marks]
GENERAL PRESENTATION
Bibliography References other than Carlon textbook and Subject Guide
Complete / Alphabetical By Surname/ Proper Format
References Complete / Proper Format
5 marks
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
? Bonus Incentive for Assignments submitted in Week 9 tutorial
Please note that this will not apply to incomplete or below standard assignments.
10%
bonus
??Please note that Late Penalty applies to assignments not submitted to your tutor in your Week 10 tutorial – penalty of 10 % for each day late applies.
10%
penalty
This Assignment Represents 15% of your Total Assessment for BAO1101
5
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 1/2015
PART 1 SHARE SELECTION SHEET – TEAM OF 2 STUDENTS
SUBMIT TO TUTOR IN TUTORIAL Part 1 Week 4 week beginning 16 March 2015
Name
Student ID
Name
Student ID
Tutor’s Name:
Tutorial Day and Time
COMPANY NAME SHARE PRICE Friday 13 March 2015 NO. OF SHARES TOTAL INVESTMENT
1.
2.
TOTAL INVESTMENT $10,000
?………………………………………………………………………………………………………………
Tear off and keep a copy of your share details for your reference
COMPANY NAME SHARE PRICE Friday 13 March 2015 NO. OF SHARES TOTAL INVESTMENT
1.
2.
TOTAL INVESTMENT $10,000
6
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 1/2015
PART 1 SHARE SELECTION SHEET – TEAM OF 3 STUDENTS
SUBMIT TO TUTOR IN TUTORIAL Part 1 Week 4 week beginning 16 March 2015
Name
Student ID
Name
Student ID
Name
Student ID
Tutor’s Name:
Tutorial Day and Time
COMPANY NAME SHARE PRICE Friday 13 March 2015 NO. OF SHARES TOTAL INVESTMENT
1.
2.
3.
TOTAL INVESTMENT $15,000
?……………………………………………………………………………………………………………..
Tea off and keep a copy of your share details for your reference
COMPANY NAME SHARE PRICE Friday 13 March 2015 NO. OF SHARES TOTAL INVESTMENT
1.
2.
3.
TOTAL INVESTMENT $15,000