FIN924 Financial Statement ASX DCF assignment 代写


Case Study Analysis Report
 
Description:
You are required to analyse the financial statements of a company listed on the Australian Securities Exchange (ASX), and to write a report based on the results of your analysis. Your analysis will include valuation exercises involving discounted cash flow (DCF) analysis, the residual earnings model and reverse engineering of implied growth rates. The company will be allocated to your group by the subject coordinator.
The annual report for your company will be made available on Moodle, along with some additional data required for the assignment. This additional data includes the year-end share price, information for the required return calculations and analysts’ forecasts for your company. You are also required to search for and use other relevant information sources of business and industry news. You must properly reference all information sources using the Harvard style of referencing. Sources such as Wikipedia and Investopedia are not suitable for this assignment and must not be referenced.
Instructions:
Ensure that you have joined a group, and that your group has at least three members and no more than five members. Complete the attached group selection form (which is also available on Moodle) and return it to the lecturer no later than week 6. Once your group selection form has been received, you will be allocated a company by the lecturer. Download the annual report and additional data on Moodle for your company and complete the report as outlined below.
Your report must contain each of the following seven sections:
1. Executive summary
2. Residual earnings valuation
3. Implied growth rates (reverse engineering with the residual earnings model)
4. Conclusions
5. References
 
A detailed description of the expected content of each section is as follows:
1. Executive Summary
 
The executive summary will include a table showing important information and calculations from your report followed by a brief summary of the key points of each section. It must be consistent with the subsequent sections in your report and any recommendations or conclusions made therein. It should be no more than one page in length. The table at the beginning of the executive summary should be the following with all entries completed:
 

Company Name
Code
Required return
Free cash flow
DCF valuation (intrinsic value)
Book value per share
Return on common equity
Residual earnings per share
Price-to-book ratio
Residual earnings valuation (intrinsic value)
Forecast residual earnings per share, year 1
Forecast residual earnings per share, year 2
Implied growth rate
Final recommendation (BUY /SELL)

 
 FIN924 Financial Statement ASX DCF assignment 代写
2.Residual earnings valuation
 
Using all the relevant information for your company in the annual report or provided on Moodle, calculate your company’s required return, book value per share, return on common equity, residual earnings per share and price-to-book ratio, as at the last financial year end. Show all relevant data used in the calculations and the relevant page numbers of the annual report from where you obtained your data.
Estimate the intrinsic value of your company’s equity using the residual earnings model and assuming residual earnings will grow at annual rate of 4% per year. On the basis of your calculation, make an investment recommendation (either buy or sell) and justify your recommendation.
3. Implied growth rates (reverse engineering with the residual earnings model)
 
For this section, use the Moodle data provided for the next two years of analyst forecasts (for both earnings-per-share and dividends-per-share) and the year-end share price. Also use the book value per share calculated in section 3. You will also have to research some relevant business news articles on your company.
Calculate your company’s residual earnings for the next two years consistent with the forecasts. Estimate the implied long-term growth rate in residual earnings, and estimate and plot the future earnings growth path, similar to Figure 7.5 in the textbook. You should include at least five years ofearnings and earnings growth rates after the final analyst forecast. You will most likely have to make some assumptions regarding future dividend payout ratios. These assumptions should be reasonable and adequately described in this section.
Combining the results of your analysis with any source of relevant company information in the business news media, discuss whether you think the implied growth rates you estimated seem too high or too low, and then make a buy or sell recommendation on the company’s shares. Hint: Examples of sources you might try are The Australian Financial Review, Yahoo Finance, Reuters or Bloomberg.
4. Conclusions
 
Summarise and discuss the results of your analysis from the previous three sections. Compare and contrast the results from each of these sections and explain any differences. Considering all of the analysis your group has carried out, what would be your final recommendation (buy or sell) and why?
5. References
 
List all of the references used in your report. You must cite your references at the relevant location in the text. Do not include uncited references. It is not necessary to cite the textbook, and students are instructed not to include the textbook as a reference.
 
Marking guide:
 
Assignments will be marked on the basis of accuracy of calculations and data import (30%), ability to interpret and analyse the results of calculations (30%), evidence of understanding of theoretical concepts and methodology (30%), and relevance and thoroughness of research (10%). In addition, up to 10% of the total marks may be deducted for poor presentation and readability including poor layout, formatting, grammar, spelling, and referencing.

FIN924 Financial Statement ASX DCF assignment 代写