(FIN103) Financial Analysis And Valuation | Assignment
Added on 2021-04-21
22 Pages5891 Words82 Views
Financial Analysis and Valuation(FIN103)Assignment 3: Company valuation andinvestmentrecommendationsTotal marks: 50Personal ID:[Enter your Personal ID]I have read the Assignment Guide in the ‘Generalassessment information’ and have applied thewordcount principles to my work.My word count for this assignment is:[Enter your word count] wordsYour assignment should be loaded into KapLearn by 11.30 pm on the due date.All times are based on AEDT/AEST time zones.Refer to ‘Time remaining’ on the ‘Assignment’ page in KapLearn to ensure you submityourassignmentby the specified due date and time.ChecklistI have completed my assignment using Word.I have completed my assignment using Calibri, Arial, Times New Roman or Verdana fonts.I have added my Personal ID on this page.I have added my word count on this page.I have added my Personal ID in front of the filename in the footer on the second page.I have saved the file to be uploaded as PersonalID_FIN103_AS3_v2.Each question of my assignment is within the word limit guidelines for that question as per the ‘Generalassessment information’ (Assessment Assignment GeneralAssessment information).My assignment file size is no larger than 2 MB.If tables were required, they are visible as text, not as links or images.I have not removed the marking grid from thefooter.I have submitted my assignment as per the instructions in KapLearn.
Marker feedbackComment on overall performance: For marker use only.For office use only#12345TotalMax12127910**Expression isfaulty**Awarded**Expression isfaulty**
Instructions to students•This assignment covers Topics 5, 7, 8 and 9 and accounts for 50% of your final grade.•There are five (5) areas you need to focus on in this assignment. You should answer all areas.•You are required to conduct research beyond the FIN103 subject materials when answering some ofthe assignment areas.•The overall word limit for the assignment is 2,000 words. Marks will only be awarded for answers up tothe word limit (plus 10%) for each question. Any material written after this will not be counted towards your mark for that question. Headings, quotes and references within the body of the answer are included in the word count. Numerical tables, calculations, and reference lists are not included. Formore information on word counts and their rationale, go to Assessment Assignment Generalassessment information.•Refer to the Criteria-based Marking Guide for guidelines on what is expected for each question. •The ‘General assessment information’ section in KapLearn contains information about format and presentation, wordlimits, citations and referencing, collusion, plagiarismand other policies, usefulresources, submitting your assignment and accessing your results.•Full workings must be shown for all calculations. Show all calculations in the text of your assignment andnot attached as an appendix. Appendices to assignments will not be read.•Answers are to be in your own words. Reference and cite all your sources (within the text of your answer) when quoting or using material from external sources. Include a reference list at the end of your assignment. Refer to the ‘Referencing and Citations Guide’ available from the ‘Library Learning Hub’ in KapLearn for further information on referencing.•State all assumptions used in providing your answer.•Requests for special consideration or information pertaining to special consideration written in the bodyof the assignment will not be considered by the marker. Refer to the ‘Refer to the ‘Extensions and special consideration’ section of the Assessment Policy on Kaplan’s website for more information.For office use only#12345TotalMax12127910**Expression isfaulty**Awarded**Expression isfaulty**
Learning outcomes (LO) mappingMarks2.Explain how corporations are financed, the needs of their stakeholders and the calculation of dividend returns to various types of shareholders.33.Calculate a company’s working capital, profitability and market performance ratios using itsannual report.204.Assess the company’s performance using the results of the financial ratios calculated to make an investment recommendation.225.Explain key valuation concepts and the valuation process.5Total marks50For office use only#12345TotalMax12127910**Expression isfaulty**Awarded**Expression isfaulty**
Assignment presentation and referencingReference and cite all your sources when quoting or using material from external sources.You are required to:•use an appropriate presentation and format for your assignment•demonstrate independent research and analysis•demonstrate appropriate use of relevant references•follow the Harvard referencing style as recommended in the ‘Referencing and Citations Guide’ availablefrom the ‘Library Learning Hub’ in KapLearn•include a reference list at the end of your assignment following the recommended referencing style•adhere to the assignment word limit.Background information•For this assignment you are required to evaluate the quality of JB HiFi’s (JBH’s) earnings, calculate and analyse market performance ratios related to JBH, andprepare a reportin which you are required to provide an investmentrecommendation for JBH. •For the purposes of your analysis and discussion for questions 1, 2 and 4, ignore post balance date events at JBH (i.e. post 30 June 2017 events). Inother words, your responses to questions 1, 2 and 4 should be based on JBH’s performance up to 30 June 2017. However, for Question 3, do not ignore any dividends that were declared post 30 June 2017 that relate to JBH’s financial year ended 30 June 2017.•Show all workings for any ratio calculations in your answers. Your workings and answers should be rounded (unless otherwise stated in a question) to the same extent that JBH has rounded amounts in its 2017 Financial Statements. For example, JBH’s total assets of $2,452.3million as at 30 June 2017 would be shown in the assignment as $2,452.3 million.•Consistent with Assignment 2, assume that the only significant items in FY2017 were as follows:–transaction fees and implementation costs of $22.4 million pre-tax ($15.7 million post tax) associatedwith the acquisition of The Good Guys–goodwill and fixed asset impairment charges relating to JBH New Zealand of $15.8 million pre-tax ($11.1 million post-tax).•Assume that the current market price (CMP) for JBH at 30 June 2017 is $23.37.•Assume that the FY2017price/earnings ratio for the ASXConsumer Discretionary sectoris 12.8 times (x), while the FY2017dividendyield for this sectoris 4.1%.For office use only#12345TotalMax12127910**Expression isfaulty**Awarded**Expression isfaulty**
•When calculating earnings per share (EPS), cash flow per share and net tangible assets (NTA) per share, assume the following in relation to JBH share capital movements during the financial year:DateDetailsNumber ofshares issued/(bought back)Application price$Last market pricecum issue$1 July 2016Starting number of shares98,947,309131 August 2016Employee option exercise277,86326.0530.07226 September 2016Institutional entitlement offer9,891,25826.2030.81311 October 2016Retail entitlement offer5,246,06625.2029.55428 February 2016Employee option exercise58,90724.9926.8230 June 2017Ending number of shares114,421,403–Assume that all share issues occur at the end of the dates of issue (i.e. at 5.30 pm or close of business).–When time weighting the number of shares, work in days (not months) and use the exact number of shares (not the number of shares rounded to the nearest 1,000). Note that while partial shares can be carried forward in calculations, only whole shares should be shown in tables (shares are not divisible).–Any calculations of market price ex-issue must be to four (4) decimal places.For office use only#12345TotalMax12127910**Expression isfaulty**Awarded**Expression isfaulty**
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