University : Holmes institute Melbourne UniLearnO is not sponsored or endorsed by this college or university.
Subject Code : HI5002
Country : Australia
Assignment Task -                 
 

Tasks 

This assignment task is a written report that includes 3 parts: 

Part 1: Research and fact-finding on Australian financial products.  

Part 2: Fact-finding of investment analysis tools in Australia.  

Part 3: Capital Budgeting and Project Evaluation.

 

Part 1. Research and Fact-finding of Australian Financial Products 

Visit the website of the Australian Stock Exchange (ASX) to find information about at least ten financial products that are publicly traded on the market.

Part 2. Fact-finding of Investment Analysis Tools in Australia 

You are required to go to the Online Portal of ASX, read the materials of two education courses offered by ASX about fundamental analysis and technical analysis & the following questions:

 

2.1. Fundamental Analysis 

a. What is fundamental analysis? 

b. What are you trying to learn about a company with fundamental analysis? c. What kind of information from a company’s annual reports is useful for your investment? d. Why dividend per share and dividend yield can be useful for investors to appraise the financial condition of a company given the limitations of financial ratio analysis? 

2.2. Technical Analysis 

a. What is technical analysis? 

b. What are the three types of charts applying for Technical Assistance? 

c. What is an uptrend, downtrend, and how to recognize a change of trend? 

d. What are the resistance and support lines? 

e. What is the moving average? What does it tell investors? 

 

Note that this is a fact-finding question and all the information needs to be taken from the provided source (ASX website). The penalty is applied for secondary data (literature review, research, or article done by someone else). However, note that you need to read the course material to get information and use your own wordings to rephrase it, then make a proper intext citation and references to the ASX sources. High similarity index showing the source of ASX with proper references is FINE but copy and paste the content of the courses is plagiarism. 

 

Part 3: Capital Budgeting and Project Evaluation 

Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product. It will require the company to buy new equipment that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option.  

3.1. Capital Budgeting Decision Making: Perform a capital budgeting technique based on Equivalent  Annual Cost (EAC) to advise the Company Management which option should be chosen if the relevant discount rate is 9%?

Assume that the company finally chose Option B. It expects to sell 600,000 units of the new product for an average price of $15 per unit. The Equipment in Option B has a residual value of $300 000 at the end of the project. The company will need to add $ 750 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below: 

Depreciation method: straight line 

Variable cost per unit: $10.5 

Cash fixed costs per year: $25 000 

Discount rate: 9% 

Tax Rate: 30% 

Upon consideration of unexpected economic conditions, the company management requires your  Team to prepare a risk analysis to evaluate the outcome of the potential project when the values drivers of the project change by 20%. 

Required: identify the value drivers of the project cash flows, do a sensitivity analysis and provide the management with a sensitive analysis report which shows how net present value (NPV) would change with a 20% change in the value drivers. 

 

Conclusion 

Summarize / Reflect on the outcomes of your group’s works (not more than 300 words).

 

This HI5002 - Finance Assignment has been solved by our Finance Experts at UniLearnO. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment Experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

 

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Roman
  • Posted on : January 04th, 2019

Whatsapp Tap to ChatGet instant assistance