the report is about the Mcpherson's limited and we need to do the forecasting, valuation, sensitivity analysis, and consultancy advice, the file which is uploaded describes it all. I have a sample example if needed and the lecture notes as well and for more info related to the assignment if you need could provide u with the group assignment, part A (of this assignment). please check the file and the marking rubric of the report please follow the HD/D of it and word limit is 4000 words.you would need the MCP - Mcpherson's limited annual report of (2014- 2018)
Financial Statement Analysis 22319 Individual Assignment Part B: Marking Rubric Report /30 Marking item Marks Exceeds criteria (Distinction/HD = 75% – 100%) Meets criteria (Pass/Credit = 50% – 74%) Criteria not yet met (Fail = 0% – 49%) Forecasting: /10 Correctly and convincingly prepares a 5-year and long- term forecast for your organisation. Clearly and professionally presents forecasts in the report body or appendix and correctly and explicitly refers to them in the analysis. The font is of sufficient size so that all data can clearly and easily be read, the data is formatted consistently throughout, and all data is present and not cut off. Explicitly and convincingly explains the reasons for all of your initial forecast assumptions, i.e. assumptions for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. Prepares a 5-year and long-term forecast for your organisation. Presents forecasts in the report body or appendix and implicitly refers to them in the analysis. The font is of sufficient size so that most data can be read, the data is mostly formatted consistently throughout, and most data is present and not cut off. Explains the reasons for many of your initial forecast assumptions, i.e. assumptions for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. Does not correctly and/or convincingly prepare a 5-year or long-term forecast for your organisation. Does not clearly present the forecasts in the report body/appendix and/or does not correctly and/or explicitly refer to them in the analysis. The font is too small making the data difficult to read. The data is not formatted consistently throughout, and/or some data is missing, e.g. it has been cut off at the margins. Does not explicitly and convincingly explain the reasons for all of your initial forecast assumptions, i.e. assumptions for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. This may be because the report simply states that the average of past 2-3 years are representative of the future and/or the report makes very little attempt to justify assumptions or display understanding of the business, the economic environment in which the business operates and/or the sustainability of the recent performance of the business. Valuation: /4 Correctly calculates the results from 4 valuation models in a table. Explicitly includes the correct calculation of WACC, CAPM, share price and date of the share price. Clearly and professionally presents valuation models in the appendix and correctly and explicitly refers to them in the analysis. The font is of sufficient size so that all data can clearly and easily be read, the data is formatted consistently throughout, and all data is present and not cut off. Compares and convincingly discusses the estimates obtained from the four models. Explicitly compares the estimates with the share price and convincingly explains whether the firm is currently overvalued or undervalued. Evaluates the models and convincingly provides insight on why some models may not project the most reliable share price outcome. Calculates the results from 4 valuation models in a table. Includes the correct calculation of WACC, CAPM, share price and date of the share price. Presents valuation models in the appendix and implicitly refers to them in the analysis. The font is of sufficient size so that most data can be read, the data is mostly formatted consistently throughout, and most data is present and not cut off. Discusses the estimates obtained from the four models. Compares the estimates with the share price and explains whether the firm is currently overvalued or undervalued. Evaluates the models and explains why some models may not project the most reliable share price outcome. Does not correctly calculate the results from 4 valuation models in a table. Does not explicitly include the correct calculation of WACC, CAPM, share price and/or the date of the share price. Does not clearly present valuation models in the appendix and/or does not correctly and/or explicitly refer to them in the analysis. The font is too small making the data difficult to read. The data is not formatted consistently throughout, and/or some data is missing, e.g. it has been cut off at the margins. Does not compare and/or convincingly discuss the estimates obtained from the four models. Does not explicitly compare the estimates with the share price and/or does not convincingly explain whether the firm is currently overvalued or undervalued. Does not evaluate the models and/or convincingly provide insight on why some models may not project the most reliable share price outcome. Marking item Marks Exceeds criteria (Distinction/HD = 75% – 100%) Meets criteria (Pass/Credit = 50% – 74%) Criteria not yet met (Fail = 0% – 49%) Sensitivity analysis: /6 Clearly and convincingly adjusts the initial forecast assumptions to reflect your optimistic and pessimistic outcomes for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. Correctly recalculates the estimated share value from the residual operating income model. Clearly and professionally presents sensitivity analysis results in a table that clearly illustrates the base case versus the sensitivity analysis. Correctly and explicitly refers to the tables in the analysis. The font is of sufficient size so that all data can clearly and easily be read, the data is formatted consistently throughout, and all data is present and not cut off. Provides convincing explanations of how and why the optimistic and pessimistic outcomes for forecasting assumptions are chosen. Explicitly identifies and comprehensively discusses the key assumptions the valuation is most sensitive to. Adjusts the initial forecast assumptions to reflect your optimistic and pessimistic outcomes for sales growth, ATO, PM, net dividend payout ratio, cost of debt and cost of equity. Recalculates the estimated share value from the residual operating income model. Presents sensitivity analysis results in a table that illustrates the base case versus the sensitivity analysis. Implicitly refers to the tables in the analysis. The font is of sufficient size so that most data can be read, the data is mostly formatted consistently throughout, and most data is present and not cut off. Provides basic explanations of how and why some of the optimistic and pessimistic outcomes for forecasting assumptions are chosen. Identifies and discusses some of the key assumptions the valuation is most sensitive to. Does not clearly and/or convincingly adjust the initial forecast assumptions to reflect your optimistic and/or pessimistic outcomes for sales growth, ATO, PM, net dividend payout ratio, cost of debt and/or cost of equity. Does not correctly recalculate the estimated share value from the residual operating income model. Does not clearly and/or professionally present the sensitivity analysis results in a table and/or does not clearly illustrate the base case versus the sensitivity analysis. Does not correctly and/or explicitly refer to the tables in the analysis. The font is too small making the data difficult to read. The data is not formatted consistently throughout, and/or some data is missing, e.g. it has been cut off at the margins. Does not provide convincing explanations of how and why the optimistic and pessimistic outcomes for forecasting assumptions are chosen. This may be because the report simply states that the various factors of sales growth and PM etc are increased/decreased by a certain % without any justification of their assumptions based on the historical performance of the company and the economic factors at play. Does not explicitly identify and/or comprehensively discuss the key assumptions the valuation is most sensitive to. Management consulting advice: /8 Provides a convincing, detailed insight on the potential opportunities and challenges for the firm to maintain or improve current profitability. The discussion explicitly refers to the sensitivity analysis and the key factors that have significant impact on valuation. Provides credible, creative advice specifically tailored to your firm on what business strategies and measures can be adopted to improve value for your firm. Discusses some potential opportunities and challenges for the firm to maintain or improve current profitability. The discussion implicitly refers to the sensitivity analysis and the key factors that have significant impact on valuation. Provides advice to your firm on what business strategies and measures can be adopted to improve value for your firm. Does not provide a convincing, detailed insight on the potential opportunities and/or challenges for the firm to maintain or improve current profitability. The discussion does not explicitly refer to the sensitivity analysis and the key factors that have significant impact on valuation. Does not provide credible, creative advice specifically tailored to your firm on what business strategies and measures can be adopted to improve value for your firm. This may be because the advice is too generic. Marking item Marks Exceeds criteria (Distinction/HD = 75% – 100%) Meets criteria (Pass/Credit = 50% – 74%) Criteria not yet met (Fail = 0% – 49%) Overall report quality: /2 Communication is clear, concise and precise. Report is very well written, structured, and presented in a professional and coherent manner. Excellent use of visual material (tables, graphs,) that is well integrated with text. Various reliable sources are used to inform the analysis. The Harvard referencing method is applied consistently with no errors. The formatting, referencing and word count is strictly adhered to. Communication is generally clear and concise, making it easy for the reader to understand. Report is well written, structured, and presented in a professional and coherent manner. Good use of visual material (tables