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GMBA6006 Global Financial Management

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Report (Individual)

Trimester 3, 2022

Weight: This assignment is worth 25% of the total assessment for the unit. Refer to the unit guide on Canvas.

Total Marks: 60

Due time and date: 11:59pm (AEDT) Monday, Week 12 on 7November 2022

Submission Instructions:

Maximum word length: 2000words.

  • You need to submit the assignment in PDF/MS Word format,with an assignment cover sheet included ,via Turn it in by the due date.
  • In addition, an Excel file with supporting calculations must be submitted online to Assignment_Supporting Excel File link on Canvas by the due date. You will need to include your student ID and your name in the Excel file name (for example, cxxxxxxx_ First Name_Last Name). The word file should be a stand-alone report which will be marked. The Excel spreadsheet will also be reviewed. It must be submitted so that your calculations can be checked as required.
  • Submission by other means (email/hard copy)or forms(scanned copy)will attract no marks.

Penalties:

  1. In the case of late submission without an approved extension of time, a penaltyof10%will apply for each day the assignment item is late.
  2. Penalties will also apply if academic misconduct is found (refer to the Course Outline for more information).

Outline

You have recently been employed as an investment analyst to examine Australian stocks by New castle GMBA Investment Group. The firm is particularly interested in undertaking research with respect to the following listed Australian companies:

  • APA Group (ASX Code: APA)
  • BHP Group Ltd (BHP)
  • Commonwealth Bank of Australia (CBA)
  • CSL Ltd (CSL)
  • Goodman Group (GMG)
  • Telstra Corporation Ltd (TLS)
  • Transurban Group (TCL)
  • Wesfarmers Ltd (WES)
  • Wisetech Global Ltd (WTC)
  • Woodside Energy Group LTD (WDS)
  • Woolworths Group Ltd (WOW)

As a starter in the investment firm, your primary role is to assist a senior financial analyst by collecting and analysing relevant company-specific and market data for one of the above companies.You should prepare an analyst report for the company that you select.

The report should contain the following sections:

  1. An executive summary that provides a trade recommendation on the firm and is logically supported by the highlights from each of the section of the report. (10 marks)
  2. A brief overview of the firm’s operations and a summary of the most recent financial results and keys news from this year. (10 marks)
  3. A discussion of risks that may affect the firm. The risks should be classified into unexpected yet possible macroeconomic, industry and firm-specific events that may affect the firm’s future cash flows and hence share price. (20 marks)
  4. Calculate a fair value for the stock. To undertake this valuation, students should collect or measure firm financial performance, forecast future performance and provide a valuation using the dividend discount model. All inputs and estimates need to be justified. (20 marks)

The maximum word count for this assignment is 2000 words. Students will be penalized for breaches of this word limit. Students should allocate their word limit accordingly (e.g., Executive summary – up to 300 words; Company overview – up to 300 words; Risk analysis – up to 700 words; Valuation – up to 700 words).

Additional Information

You are expected to use publicly available information to complete the assignment.There are a range of possible sources of data that can be used, but the list below provides a summary of recommended sources:

  • Company annual reports
  • Company website
  • Market Index, (https://www.marketindex.com.au/), provides company profile, announcements, stock prices, dividend history, management information, director transactions, valuation ratios and other key statistics.
  • Yahoo Finance, (http://au.finance.yahoo.com/), provides company profile, stock prices, valuation ratios and other key statistics.
  • The Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) provide macroeconomic and financial market data.

RBA: https://www.rba.gov.au/

ABS: https://www.abs.gov.au/

In addition, students might benefit from the insights provided in the following readings:

  • GMBA6006 Weeks 1 to 8 Lecture Notes/Workshop Questions
  • Ross, A.R, Trayler, R., Hambusch, G., Koh, C., Westerfield, R. W. & Jordan B.D. (2020). Essentials of Corporate Finance, 5th ed. Australia: McGraw-Hill.