Finance and Banking

Running head: FINANCE AND BANKING
Finance and banking
Name of the Student:
Name of the University:
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FINANCE AND BANKING
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Table of Contents
Part A: AMP and CBA Share Price...........................................................................................2
1. Detecting the share price of AMP, NAB and CBA, where adequate explanation is provided
in the past five years with graph and other series:.....................................................................2
2. Indicating share price movement of AMP and CBA due to the reposts of Royal
Commission inquire:..................................................................................................................4
Part B: Capital Budgeting..........................................................................................................5
1. Depicting the difference between the internal rate of return and required rate of return:......5
2. Evaluating the NPV of both projects and stating which should be accepted:........................6
3. Evaluating the IRR and detecting which project should be accepted:...................................7
4. Mentioning the alternation in conclusion if required rate of return is increased to 14%:......7
5. Mentioning the difference in NPV and IRR, while stating the preferred recommendations
by the company:.........................................................................................................................8
Reference and Bibliography:....................................................................................................10

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Part A: AMP and CBA Share Price
1. Detecting the share price of AMP, NAB and CBA, where adequate explanation is
provided in the past five years with graph and other series:
Figure 1: Share price of AMP for last five years
(Source: Au.finance.yahoo.com 2018)
The share price of AMP has been falling since five-year period, which can be seen
from the above figure. The share price of the organisation has mainly depicted due to the
reduction in their financial performance over the period of time. In addition, the deterioration
in the financial performance has mainly forced shares of the organisation to decline in the
current levels of 2.34 from the high of 6.5. The further impact was a relatively provided by
the royal exchange commission in Australia, which highlighted the unethical actions of the
organization. This negatively affected the share price of the organization and drove it towards
lower level from AUD 5. During 2015, AMP made a higher high and reached AUD 6.5, after
which it started to engulf in downtrend that can be seen in the current pricing of the
organization where it continues to make lower lows on each day.

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Figure 2: Share price of CBA for last five years
(Source: Au.finance.yahoo.com 2018)
The above figure specifies the share price movement of Commonwealth Bank of
Australia for time duration of 5 years. From the evaluation, it has been seen that the
organization has witnessed a consolidation in its share price, where the prices fluctuate in a
given resistance and support line. The low financial performance of the organization was the
main driving point of the shares to decline to the levels of 68.65 from a high of 98. The
support level at AUD 70 has been broken in recent trading days, which indicates a downtrend
that is being witnessed by CBA.
Figure 3: Share price of NAB for last five years