assignment related to shares

1. Presentation

Assignment needs to submit by using the following guideline:

Ø Contents

Ø Executive Summary

Ø Introduction

Ø Findings (explain the answers of the questions)

Ø Conclusion

Ø List of references

2. Assessment criteria

In assessing submitted assignments consideration will be given to overall neatness, completeness and quality of presentation, timeliness of submission and demonstrated application of appropriate analysis of financial statements.

3. Assignment Topic

XYZ Ltd is a diversified company that owns more than 20 subsidiary companies spanning many sectors of the economy. It is considering buying all the issued ordinary shares of a competitor company. The problem for XYZ Ltd is that the takeover target does not have its shares listed on the stock exchange. Accordingly, it is not possible to obtain from the market a price for the target’s ordinary shares. The board of directors of XYZ Ltd. has given you the task of providing an estimate of the intrinsic value of the target’s ordinary shares.

i. What model would you recommend using to determine the intrinsic value? Explain the reasons for your selection?

ii. What data does the model require you to determine the intrinsic value?

iii. How could you estimate the dividend growth rate and the required rate of return?

Note: Maximum word is 2000 except content list, cover page and references.

4. Referencing

Correct referencing is important for two main reasons. The first is to enable the reader to access source material you have relied upon, should they care to. The other is to ensure that you have properly recognized the contribution of the work of others to your assignment. If you do not do this properly, you are engaging in plagiarism—the theft, intentional or otherwise, of the intellectual or creative work of others.

9. Marking Criteria Format

Marking Criteria

Very Poor

Poor

Satisfactory

Good

Very good

MARK

Evidence of research (5 marks)

· interpreted the questions answers appropriately.

· demonstrated an understanding of the necessary concepts/perspective/theories.

· used sufficient and appropriate material from relevant and credible sources to effectively support the key points.

· followed any instructions on the number and type of references to be used.

Understanding of the issues (10 Marks)

· the introduction is appropriate to the type and format of

response and clearly outlines the focus.

· the body of the response is well structured, with coherent and logical development of key ideas in appropriate sections/paragraphs.

· clearly addressed the topic with appropriate elaboration of relevant sub-topics, appropriately weighted and within the prescribed word count

· demonstrated the ability to critically reflect upon key ideas/issues/findings.

· each section/paragraph has a clear focus and line of thought.

· the conclusion is appropriate to type and format of the response, successfully summarising the key ideas/issues/findings.

PRESENTATION (3 Marks)

· the response conforms to the appropriate style guide

advice and the requirements of the specified format (font, margins etc)

REFERENCING (2 Marks)

· in-text citations and direct quotes follow referencing guide rules.

· reference list and/or bibliography appropriately compiled in accordance with Harvard style.

Total available marks – 20 Total mark obtained