need to select two companies
the companies which we have selected are
csl ltd
ansell ltd
with turnitin report
MA514 Business Finance Page 2 of 5 Assessment Details and Submission Guidelines MA514 Business Finance School Business Course Name Master of Professional Accounting (MPA) Unit Code MA514 Unit Title Business Finance Trimester Trimester 2, 2020 Assessment Author Dr Jayasinghe Hewa Dulige Assessment Type Report Assessment Title Assessment Task 4 – Group Assignment Unit Learning Outcomes Addressed: b. Demonstrate knowledge of time value of money (TVM) concepts and techniques, capital market theories, and methods of financing businesses, and critically apply the concepts to evaluate economic and investment decisions, including the valuation of bonds and shares and the assessment of capital budgeting decisions. c. Demonstrate strong conceptual corporate finance knowledge to analyse and interpret advances in theory for professional practice. e. Communicate relevant high level finance knowledge with other professionals. Weight 20% Total Marks 100 Word limit 1000-1100 Release Date Week Five Due Date Week 10 Submission Guidelines · Group size: This assignment should be completed in groups of five. · All work must be submitted on Moodle by the due date along with a completed Assignment Cover Page. · The assignment must be in MS Word format, 1.5 spacing, 11-pt Calibri (Body) font and 2 cm margins on all four sides of your page with appropriate section headings. · Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using APA 6th edition for the School of Business. Extension If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted directly to the School's Administration Officer via your MIT AMS login [https://online.mit.edu.au/ams/default.aspx?ReturnUrl=%2fams%2f]. You must submit this application no later than three working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. Further information is available at: http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/specialconsiderationdeferment Academic Misconduct Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-guidelines/Plagiarism-Academic-Misconduct-Policy-Procedure. For further information, please refer to the Academic Integrity Section in your Unit Description. Assessment Task Description Financial ratios are used to analyze a company’s strengths and weaknesses by looking at the ratio of various financial data to each other by financial and business analysts and investors. Ratios thus estimated convert financial information of companies to a standardized format enabling them to be used to compare different companies to the industry average ratios before making investment decisions. Company practices sometimes differ, which can produce different results so it is best to analyze a number of different ratios to get the most accurate overall picture of the company and comparison (Ross et al, 2019). It may be a challenging task for capital market participants to determine a company’s financial health by looking at financial ratios because it is time consuming, and requires financial and accounting knowledge. However, it is argued that it doesn’t require special training or countless hours of research. Even the investor who does not have good knowledge about capital market can make sense of a listed company’s balance sheet, profit and loss and cash flow statement by using financial ratios (Australian Shareholders Association, 2010). Required: 1. Calculate the followings for two companies in the same industry of one of the three industry segments of Consumer staples, materials and energy listed on the Australian Securities Exchange (ASX Top 200). Each group is required to analyse 2018/2019 FY annual reports. (List is uploaded in Moodle). A. Liquidity ratios 1. Current ratio 2. Profit before depreciation and amortisation to current liabilities 3. Operating cash flow to current liabilities (OCFCL) 4. Cash balance to total liabilities (CBTL) B. Leverage ratios 1. Debt to equity ratio (DE ratio) 2. Total liabilities to total tangible assets (TLTAI) 3. Interest cover ratio C. Profitability ratios 1. Earnings per share (EPS ) 2. Gross profit margin 3. Net profit margin 4. Return on assets (ROA ) 5. Return on equity (ROE ) D. Valuation ratios 1. Price to earnings ratio (PE ) 2. Price/earnings to growth ratio 3. Dividend yield 2. Compare the performance of one company with other by using liquidity, leverage, profitability and valuation ratios and evaluate the financial health of two companies. Ross, S. A., Trayler, R., Koh, C., Hambusch, G., Westerfield, R. W. and Jordan, B. D. (2019.). Essentials of Corporate Finance (5th Edition). NSW, McGraw-Hill Education. Australian Shareholders Association, (2010). The top 15 financial ratios. Retrieved from: http://members.lincolnindicators.com.au/Content/FileStore/Research/top-15-financial-ratios.pdf This assignment must be written/structured in the form of a ‘business report’. That is, it must have a/an; (a) Executive summary (between 100 to 150 words), (b) Introduction that; Succinctly summarizes this assignment’s topic and its key issues, controversies, etc. (no more than 150 words), and (c) Body that addresses all the requirements – see above 1-2 (no more 600 words), (d) Conclusion that sums up the mains issues of this assignment (no more than 150 words), and (e) Reference list containing all cited works. (f) Proper English Grammar, appearance, format, etc. At least 3 recognized journal article should be cited. Marking criteria: MA514 / Business Finance /Semester T2, 2020, Group Assignment Name: Student Number Assessment Criteria Total Marks Marks awarded Criterion 1 - Structure and Clarity of the Report/Assignment · introductory paragraph · logical flow of clarity and structure of ideas and arguments · appropriate use of paragraph and headings to explain and discuss ideas · appropriate concluding paragraph 3 2 2 3 Total marks for criterion 1 10 Criterion 2 - Body/contents 1. Calculation of · Liquidity ratios · Leverage ratios · Profitability ratios · Valuation ratios 2.Compare the performance of one company with other by using liquidity, leverage, profitability and valuation ratios and evaluate the financial health of two companies. 10 10 10 10 20 Total marks for criterion 2 60 Criterion 3 - Research and Analysis · quality of research undertaken · accuracy and depth of analysis · appropriate use of in-text and end text referencing · quality of information sources · appendices 7 7 4 4 3 Total marks for criterion 3 25 Criterion 4 - Presentation · layout · formatting · spelling/grammar · proof read · professional format 1 1 1 1 1 Total marks for criterion 4 5 Total Assessment task marks 100 Total Unit marks 20 Other Comments Using Technology for Assessment Rationale Activities Technological tools selected · Industry knowledge & skills · reflection on learning · feedback on performance · practice of critical thinking · team work · check for plagiarism · problem-based learning · assessment of team work · collaborative writing · online forum on Moodle · Turnitin © MIT August, 2019T1-2020