Online course. Communication.1 original post 2 discussion reply
February 11, 2021
Please do not use any of the Nurse Daniel information for your own topic, nursin
February 11, 2021

Context:You are expected to prepare a Report based on the following case.The Case Analysis requires students to apply their knowledge of key finance concepts such asfinancial statement analysis, risk and return, capital structure and valuation of shares to an analysisof two companies that are listed on the Australian Securities Exchange (ASX).Your facilitator will allocate to you two companies from the same sector drawn from the ASX100 listof 1 October 2019 (list of companies provided at the bottom). These are the top 100 Australiancompanies by market capitalization as of that date.Instructions:(a) Using annual reports perform a comparative financial statement analysis of the two companiesover the period 1 January 2014 to 31 December 2018. You are expected to calculate theProfitability, Liquidity and Investment ratios. (10 marks)(b) Using information for each of the five years (2014 to 2019) examine the capital structure of thetwo companies and comment on how the capital structure has changed over the period. (10marks)(c) Determine a historical weighted average cost of capital (WACC) for each of the years for eachcompany. (10 marks)(d) Using qualitative and quantitative information, some from previous calculations, and any otherrelevant information perform a valuation of the two companies’ shares using the followingtechniques:(i) Discounted cash flow approach – any one technique. (10 marks)(ii) Relative valuation which is based on a market to book value ratio. (10 marks)(e) Assuming you inherited $7 500 000 from your late aunt, which of these two companies’ shareswould you invest in? Justify your answer using information from above and also taking intoaccount the dividend policy followed by each of the companies. (10 marks)In addition to the above, you will also be assessed on the following: (see Learning Rubric at theend for more description of expectation).(f) Content, Audience and Purpose. (5 marks)(g) Critical reasoning, presentation and defense of an argument and/or position. (10 marks)(h) Analysis and Application with synthesis of new knowledge. (15 marks)(i) Use of academic conventions and sources of evidence. (5 marks)


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