ASSESSMENT 2 BRIEF Subject Code and Title FINA6000 MANAGING FINANCE - PDF document

ASSESSMENT 2 BRIEF Subject Code and Title FINA6000 MANAGING FINANCE Assessment 2 Presentation Assessment Individual Individual/Group Length 15 mins (+/-10%) Learning Outcomes b) Analyse financial information and evaluate financial performance of a business. c) Apply time value of money to the valuation of a variety of cash flows, securities and projects leading to sound investment and financing decisions. d) Analyse risk and return associated with investments. Submission Due by 11:55pm AEST Sunday end of Module 4 (Week 8) Weighting 20% Total Marks 100 Marks Task Summary Students are expected to utilise publicly available financial market information, evaluate financial performance of selected organisations listed on the Australian Securities Exchange and apply the theory of time value of money, risk and return when making investment decisions. Students are expected to prepare 10 -15 ppt slides and record a 15 minutes presentation addressing the assessment tasks. Context The World Health Organisation (WHO) categorised the coronavirus as a pandemic on the 11th of March 2020. This announcement induced a lot of panic in many countries with panic buying of major household items and medicines escalating. In order to minimise the spread of the virus, airlines have cut down international flights and travel bans have been implemented, with some countries closing borders completely. Economists and governments foresee grave effects on global economies as a result. The financial markets have not been spared. They can be seen as barometers of investor sentiment and give an indicator of how the market participants could be evaluating the impact of the COVID-19 pandemic on viabilities of companies. It is important for existing and prospective investors to have information on how financial markets have been impacted. Students will have the opportunity to apply the concept of risk and return with respect to shares, analyse the current financial market situation and evaluate the effect of a market risk factor such as COVID-19 pandemic on return and risk. ECON6001_Assessment_2_Brief_Individual Presentation Page 1 of 9

Task Instructions Choose two organisations from different industries currently listed on the Australian Securities Exchange from the list provided. Collect daily share prices and ASX200 index values for the period 30 November 2019 to 31 March 2020 for your selected organisations. Note that this period is the one that has witnessed the emergence of the coronavirus and its rapid spread globally. Economies have already begun to experience negative effects and many industries are predicted to incur heavy losses. Australian industries such as airline, hospitality, tourism, transport and many more have been heavily impacted. Major securities markets worldwide have plunged over this period, the Australian Securities Exchange included. Complete following tasks for the chosen organisations: (a) Collect daily share prices using ASX200 index values easily obtainable on the yahoo finance website (au.finance.yahoo.com). Note: To search for the information, type in the quote look up section the code for the organisation or the ASX200 code. You then have to search for historical data for the period required. (b) Calculate the following measures: (i) geometric mean return (ii) a measure of total risk (iii) systematic risk of the selected shares (iv) two risk-adjusted returns using the metrics already determined. (c) On the basis of the calculated return and risk measures and two additional important qualitative factors about the chosen organisation, make a recommendation about which of the two organisations you would rather invest in. Explain your reasoning in detail in your presentation. (d) Analyse the impact of the COVID-19 pandemic on your selected organisations and industries their operate in. Include comments on overall financial market situation, the specific industries they operate in, investors confidence and the organisation itself. Consider the following as you work on this assignment: • Search for the information on the share prices for your selected organisations, potential impacts on the industries they operate in and overall situation and atmosphere in the financial markets at the moment. • Prepare 10-15 slides to be presented in 15 mins (+/- 10%) • Record the 15 mins video in which the presenter’s face is seen. You are recommended to use Zoom and if not available, you can use any other recording platform. • The slides and the video are to be submitted via Blackboard together with the EXCEL document with your calculations. • Remember to cite the sources of information used. Include the list of references at the end of the presentation slides. • You will be assessed on how well you apply the finance theory concepts learnt in addressing the assessment tasks, on the quality of your analysis and overall presentation. ECON6001_Assessment_2_Brief_Individual Presentation Page 2 of 9

Referencing It is essential that you use appropriate APA style for citing and referencing research. Please see more information on referencing here http://library.laureate.net.au/research_skills/referencing Submission Instructions Submit this task via the Assessment link in the main navigation menu in the FINA6000 Managing Finane folder. The Learning Facilitator will provide feedback via the Grade Centre in the LMS portal. Feedback can be viewed in My Grades. I declare that except where I have referenced, the work I am submitting for this assessment task is my own work. I have read and am aware of Torrens University Australia Academic Integrity Policy and Procedure viewable online at http://www.torrens.edu.au/policies-and-forms I am aware that I need to keep a copy of all submitted material and their drafts, and I will do so accordingly. ECON6001_Assessment_2_Brief_Individual Presentation Page 3 of 9

LIST OF THE ASX LISTED COMPANIES TO CHOOSE FROM Code Company Sector APT Afterpay Touch Information Technology AGL AGL Energy Limited Utilities ALQ Als Limited Industrials ALU Altium Limited Information Technology AWC Alumina Limited Materials AMC Amcor Plc Cdi 1:1 Foreign Exempt NYSE Materials AMP AMP Limited Financials ANN Ansell Limited Health Care ANZ ANZ Banking Group Limited Financials APA APA Group FP Units Stapled Securities Utilities ALL Aristocrat Leisure Consumer Discretionary ASX ASX Limited Financials ALX Atlas Arteria Stap US Prohibited Excluding QUP Industrials AZJ Aurizon Holdings Limited Industrials AST Ausnet Services Limited Utilities BOQ Bank of Queensland Financials BPT Beach Energy Limited Energy BEN Bendigo and Adelaide Financials BHP BHP Group Limited Materials BSL Bluescope Steel Limited Materials BLD Boral Limited Materials BXB Brambles Limited Industrials CTX Caltex Australia Energy CAR Carsales.com Limited Information Technology CGF Challenger Limited Financials CHC Charter Hall Group Stapled Securities US Prohibited Real Estate CIM Cimic Group Limited Industrials CWY Cleanaway Waste Limited Industrials CCL Coca-Cola Amatil Consumer Staples COH Cochlear Limited Health Care COL Coles Group Consumer Staples CBA Commonwealth Bank Financials CPU Computershare Limited Information Technology CWN Crown Resorts Limited Consumer Discretionary CSL CSL Limited Health Care ECON6001_Assessment_2_Brief_Individual Presentation Page 4 of 9

CYB CYBG Plc Cdi 1:1 Foreign Exempt Lse Financials DXS Dexus FP Units Stapled Securities Real Estate DMP Domino PIZZA Enterpr Consumer Discretionary DOW Downer Edi Limited Industrials EVN Evolution Mining Limited Materials FLT Flight Centre Travel Consumer Discretionary FMG Fortescue Metals Group Materials GMG Goodman Group FP Ordinary/Units Stapled Securities Real Estate GPT GPT Group FP Ordinary/Units Stapled Securities Real Estate ILU Iluka Resources Materials IPL Incitec Pivot Materials IAG Insurance Australia Financials JHX James Hardie Indust Chess Depositary Interests 1:1 Materials JBH JB Hi-Fi Limited Consumer Discretionary LLC Lendlease Group FP Ordinary/Units Stapled Securities Real Estate LNK Link Admin HLDG Information Technology MQG Macquarie Group Limited Financials MFG Magellan Fin Group Limited Financials MPL Medibank Private Limited Financials MGR Mirvac Group FP Ordinary/Units Stapled Securities Real Estate NAB National Aust. Bank Financials NCM Newcrest Mining Materials NHF Nib Holdings Limited Financials NEC Nine Entertainment Consumer Discretionary NST Northern Star Materials OSH Oil Search Limited 10 Toea Energy ORI Orica Limited Materials ORG Origin Energy Energy ORA Orora Limited Materials OZL OZ Minerals Materials QAN Qantas Airways Industrials QBE QBE Insurance Group Financials QUB QUBE Holdings Limited Industrials RHC Ramsay Health Care Health Care REA REA Group Information Technology RWC Reliance Worldwide Industrials RMD Resmed Inc Cdi 10:1 Foreign Exempt NYSE Health Care ECON6001_Assessment_2_Brief_Individual Presentation Page 5 of 9