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FINM3005 -Semester 1, 2014 Assignment

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Question;FINM3005/7044 Corporate Valuation/Applied ValuationSemester 1, 2014AssignmentsSelect one company from the list below, to be your subject of analysis for both Assignments 1 and 2:? Coca-Cola Amatil Ltd (CCL)? Harvey Norman Holdings Ltd (HVN)? iiNET Ltd (IIN)? Village Roadshow Ltd (VRL)Assignment 1Weighting: 10% of assessmentDue date: By 4pm Wednesday 26 March 2014Word limit: 1000 wordsTo be conducted in groups of 4 or 5 students.Required: Estimate the cost of capital for your chosen companyShowing all calculations, estimate the cost of capital (weighted average cost of capital) for you chosencompany. This will involve separate estimates of the company?s cost of debt and cost of equity, withthe latter implying that you also estimate the company?s beta.Additional points? Although certain estimates may be readily available online (for both the costs of debt andequity, and in particular beta for the latter), it is expected that you estimate these yourselvesusing the methods demonstrated in class.? Please submit only TWO files via Wattle: A Word document containing the writtenassignment, and an Excel file containing any data/calculations undertaken within theassignment, both via the first named group member on the cover page. There is no need toshow detailed workings within the Word file. Limit the Word file to a concise explanation ofyour methods, the source of your data, your conclusions drawn. The usage of brief tablesand/or formulas which may add weight to your discussion, are encouraged.? There are no strict formatting requirements, however do include a 100 word abstract,reference list containing any cited articles, and use subheadings where appropriate. You mayinclude appendices if you feel they add to your assignment, but be aware that they will not beconsidered as important as the content of the assignment, during marking.? The abstract, reference list, and any appendices are not included in the word limit, but allother content, including tables, are. Please make sure the word limit is adhered to.? Use Times New Roman font in a 12pt font size, and 1.5 or double line spacing throughoutyour document.This submission is due by 4pm, Wednesday 26 March 2014, and is to be made electronically viaWattle. Ensure that you also add a cover page to your submission identifying the group members, andprovide a statement on this declaring that the assignment is your own work.Assignment 2Weighting: 15% of assessmentDue date: By 4pm Wednesday 7 May 2014Word limit: 1500 wordsTo be conducted in the same groups as Assignment 1Required: Value a share in your selected companyIt is expected that you will conduct both a DCF and a relative valuation, as per the procedures coveredin class. This assignment is an extension of Assignment 1, and it is expected that you will draw uponyour cost of capital/equity estimates calculated in that component as required (no need to recap theprocess of Assignment 1). State clearly any assumptions you have made (e.g. future growthexpectations), and provide convincing written arguments to support these. Your final answer mayconsist of a weighting of the two valuation methods, which you feel is appropriate given the companyyou have chosen.Additional points? You are not expected to use any contingent claims methods for this assignment.? Like Assignment 1, please submit only TWO files via Wattle: A Word document containingthe assignment, and an Excel file containing any calculations undertaken within theassignment, both via the first named group member on the cover page. There is no need toshow detailed workings within the Word file, but concise explanation of your methods, andusage of graphs, brief tables and/or formulas which add weight to your discussion areencouraged.? Make sure you provide discussion about the assumptions you have made, and why. Forexample, if you use expected growth rates found from another source, it is imperative that youthoroughly explain why these rates are appropriate for your company. Alternately you maycome up with your own figures. While there are no right or wrong answers for assumptionsmade where necessary, you will be graded on your ability to explain why you believe theyare appropriate.? There are no strict formatting requirements, however do include a 100 word abstract,reference list containing any cited articles, and use subheadings where appropriate. You mayinclude appendices if you feel they add to your assignment, but be aware that they will not beconsidered as important as the content of the assignment, during marking.? The abstract, reference list, and any appendices are not included in the word limit, but allother content, including tables, are. Please make sure the word limit is adhered to.? Use Times New Roman font in a 12pt font size, and 1.5 or double line spacing throughoutyour document.

 

Paper#49652 | Written in 18-Jul-2015

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