BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 2 / 2012
MAJOR ASSIGNMENT DECISION MAKING IN THE SHARE-MARKET
SUBMIT TO TUTOR IN TUTORIAL: Part 1 Week 4
SUBMIT TO TUTOR IN TUTORIAL: Part 2 and 3 Week 10
Group 1
ASX Code
Group 2
ASX Code
David Jones Ltd
DJS
Wesfarmers Ltd
WES
Woolworths Ltd
WOW
Qantas Airways Ltd
QAN
Crown Ltd
CWN
JB Hi-Fi Ltd
JBH
Financial Information and links to these companies may be accessed through .asx.com.au/”>www.asx.com.au
PART 1 SHAREMARKET ASSIGNMENT SHEET- COMPLETE AND SUBMIT SHEET ON P.3
Select a share portfolio consisting of one company from each group listed above. The total value of your portfolio should add up to $10,000 worth of shares based on the closing share prices posted on the ASX website on Friday 10 August 2012. Check after 6pm to ensure that the latest price has been updated.
During the tracking period, 10 August to 7 September 2012, your team is to monitor the performance of the shares and the overall performance of the Australian share-market. Can you maximize the value of your share portfolio???
PART 2 COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION [ 55 marks]
[A] A brief description of each company in your teams portfolio. It should be presented as a comparative table and should include:-
· Products And Services Provided By The Company [brief outline]
· Name Of Chief Executive Officer [or Managing Director]
· Salary of Chief Executive Officer [or Managing Director]
· Profit / Loss after Tax from 2011 Annual Report for the full financial year consolidated figures
· Latest Dividend Paid Dividend Per Share and Date Paid
· Size Of The Business By Total Assets from 2011 Annual Report consolidated figures
· Number Of Employees
· Share Price 52 week High And Low – from the newspaper share-market table on 7 September 2012
[100 word maximum for each company] [10 marks]
[B] For the tracking period only, using an Excel spreadsheet, prepare your own graph of the daily share price movements for each of your shares. Information should be shown in a table with separate columns for Date and Closing Price [dollars].
For the tracking period only,using an Excel spreadsheet prepare your own graph of the daily movement of the ASX200. Information should be shown in a table with separate columns for Date and Closing Value [points]. Copy and Paste Excel Tables and Graphs into a Word Document to include in your report. [10 marks]
[C] For each company, provide an overview of the share price performance and describe the overall trend of the Australian share-market over the tracking period. Describe how each of your shares performed against the ASX200. Explain major movements in your share prices and the share-market with evidence from newspapers, business magazines, internet information or other relevant sources. Evidence should be included and news articles should be scanned (see p.21 to 24 of your Subject Guide) and neatly presented in an appendix to your report. Harvard Referencing is required to acknowledge all sources of information used. Please be aware of penalties for Plagiarism. See Harvard Referencing & Plagiarism in Supplementary Resources and Links on BAO1101 website
[250 word maximum for each company and comparison with the ASX200] [25 marks]
[D] Calculate the Gain or Loss made on your portfolio during the tracking period. [5 marks]
[E] Provide a recommendation [ buy / sell / hold ] for each of your shares.
Support each recommendation with relevant information you have found in Part [C].
[50 words maximum for each company] [5marks]
PART 3 IDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS [35 marks]
[A] IDENTIFICATION OF KEY FINANCIAL DATA
For each company you have selected, complete the following table of Key Financial Data.
Find the figures from the 2011 Annual Report with results for the full financial year for 1 July 2010 to 30 June 2011
The consolidated figures are required.
Company 1
Company 2
Revenue / Sales
Interest Expense
EBIT
Net Profit Before Tax
Net Profit After Tax
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Total Equity
References are required to identify the sources of all figures in your table. [5 marks]
[B] RATIO ANALYSIS
From the Key Financial Data, calculate relevant ratios provide an overview of each companys:-
*Profitability *Stability *Liquidity
At least 6 ratios for each company should be used for this overview. The ratios may vary depending on the availability of information provided in each companys Financial Statements.
For each of the headings listed above, your overview should identify the name of the ratio used and interpret your results. Provide an explanationof why these ratios may differ between your companies. Which do you consider to be the better investment? Explain your reasoning.
Refer to your Subject Guide p.121 to p.123 for formulae and interpretation.
Please note that Topic 4 – Ratio Analysis and Interpretation will be covered in lectures in Week 8.
All formulae and calculations must be clearly shown. [250 words maximum for each company] [30 marks]
GENERAL PRESENTATION [10 marks]
Bibliography References other than Carlon textbook and Subject Guide
Complete / Alphabetical By Surname/ Proper Format
References Complete / Proper Format
5 marks
Format and Presentation
Report Format / Typed / Cover Page / Table Of Contents / Page Numbers / Spelling /
English Expression / Comparative Tables / Professional Presentation / Word Limit
5 marks
BONUS INCENTIVE / LATE PENALTY
J Bonus Incentive
for Assignments submitted to your tutor in your Week 9 tutorial
Please note that this will not apply to below standard / incomplete assignments.
10%
bonus
L Late Penalty applies to assignments not submitted to your tutor
in your Week 10 tutorial penalty of 10 % for each day late applies.
10%
Penalty
THIS ASSIGNMENT IS COMPULSORY AND REPRESENTS 15% OF THE TOTAL ASSESSMENT FOR BAO1101
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 2 / 2012
SHARE SELECTION SHEET – TEAM OF 2 STUDENTS
SUBMIT TO TUTOR IN TUTORIAL Part 1 Week 4 Beginning Monday 13 August 2012
Name
Student ID
Name
Student ID
Tutors Name:
Tutorial Day and Time
COMPANY NAME
SHARE PRICE
10 August 2012
NO. OF
SHARES
TOTAL
INVESTMENT
1.
2.
TOTAL INVESTMENT
$10,000
#
Tear off and keep a copy of your share details for your reference
COMPANY NAME
SHARE PRICE
10 August 2012
NO. OF
SHARES
TOTAL
INVESTMENT
1.
2.
TOTAL INVESTMENT
$10,000
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 2 / 2012
SHARE SELECTION SHEET – TEAM OF 3 STUDENTS
SUBMIT TO TUTOR IN TUTORIAL Part 1 Week 4 Beginning Monday 13 August 2012
Name
Student ID
Name
Student ID
Name
Student ID
Tutors Name:
Tutorial Day and Time
COMPANY NAME
SHARE PRICE
10 August 2012
NO. OF
SHARES
TOTAL
INVESTMENT
1.
2.
3.
TOTAL INVESTMENT
$15,000
# ..
Tea off and keep a copy of your share details for your reference
COMPANY NAME
SHARE PRICE
10 August 2012
NO. OF
SHARES
TOTAL
INVESTMENT
1.
2.
3.
TOTAL INVESTMENT
$15,000
BAO1101 ACCOUNTING FOR DECISION MAKING SEMESTER 2 / 2012
BAO1101 SHARE-MARKET ASSIGNMENT INDIVIDUAL SUBMISSION
Name
Student ID
Company Name
Each member in your team must complete this individual submission in their own hand-writing.
Please attach each members Individual Submission to the relevant Share Selection Sheet.
This is to be submitted to your tutor in your Week 4 tutorial.
m Why did you choose this company?
m What do you know about the company and its business?
[include results of your research]
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
__________________________________________________________________________
Signature ______________________________ Date ____________________