Category: Finance

Provide a market valuation range and mid-point of your allocated company’s outstanding equity. Provide the evidence of data collected with proper referencing and the calculations to substantiate your valuation.

A report about financial performance and financial position of the harvey norman holding limited company

look at the company financial information and complete the assignment:
for q4 use the given formula

The 2020 annual report of your allocated company must be used to complete this assessment.

Half-yearly reports for the 2021 financial year may also be used to inform your analysis. You may also use other relevant annual reports for comparative purposes.

The COVID-19 pandemic had had a damaging impact on all Australian businesses. State lockdowns and border closures have meant retail companies have faced a challenging and uncertain business environment.

However, with the roll-out of several vaccines that help prevent the spread of COVID-19, there is some hope that the second half of 2021 will see the business environment ‘return to normal’.

This is certainly welcome news for all Australian businesses, particularly those that have been most severely impacted by the pandemic.

You are Clara Cleary, a UNSW Bachelor of Commerce graduate in 2020 who quickly found employment in Felicity Trust, a financial services company that specialises in providing syndicate loans to large Australian businesses.

You have been asked by your manager – Lucy Brooks – to prepare a report that will help Felicity Trust decide on its continued involvement in a syndicated loan that is due to roll over on 31 August 2021.

This is the first task your manager has asked you to complete independently, and you want to make sure you impress! You know from your peers that Lucy is very busy and will not read any report that is greater than four pages long.

Luckily, you took notes when the task was assigned to you, which should be strictly followed to prepare the report. These are as follows:

1. A description of the business and the nature of its operations. This should focus on providing a short explanation of the business’s history, how it generates revenue, and who forms its customer base (5 Marks);

2. An analysis of the financial performance and financial position of the company (35 Marks);

3. Identify two risks from reading the reports prepared by key management personnel (i.e. Board Chair and/or CEO) in the 2020 annual report that may impact the company’s future financial performance and/or financial position. You should explain clearly how the risks you identify may impact on the ratios discussed
in part 2 above (10 Marks);

4. Using two EV Multiples and two Equity Multiples of two similar companies to your assigned company:

a) Provide a market valuation range and mid-point of your allocated company’s outstanding equity. Provide the evidence of data collected with proper referencing and the calculations to substantiate your valuation. (10 marks)

b) Compare your allocated company with the two similar companies and determine which of the two is the most similar. Provide evidence of the comparison. (10 marks)

c) Based on this comparison, narrow the valuation range and mid-point found in part (a) to something more reasonable. Show how you go about implementing this adjustment. (5 marks)

5. A short description on whether you would recommend Felicity Trust continuing its involvement in the syndicate loan. (5 marks)

Identify two or three good performance companies and justify the investment motivation for the industry and the companies

Financial investment analysis

Assignment task:

As a trainee analyst in a London investment company, you are tasked to conduct stock market performance analyses and produce a report to the investment manager to identify some key factors that affect share performance.

The investment manager is keen to make significant investment in companies and industries that thrive in the current COVID-19 market environment and ask you to do some research in this area.

You are to identify two companies in one industry that perform well under COVID-19 investment environment. In your report, include the following:

Identify two or three good performance companies and justify the investment motivation for the industry and the companies (suggested words: 200 words)

Through research and review, identify key factors that could affect share performance for the companies in that industry (suggested words: 800 words)

Construct regression model(s) to examine the effect of different factors on share performance, i.e. CAPM, Fama and French three factors model and five factors model, or other models you develop. See some journals listed in the Assignment Support folder under Module (suggested words: 600 words)

Data introduction and sample statistics covering the most five recent years using daily data (suggested words: 200 words)

Discuss findings, including the following regression analysis areas: (suggested words: 1000 words)
Regression results and the economic meaning of key coefficients

Compare and contrast the two companies, i.e. performance and key factors
Examine multicollinearity
Examine heteroscedasticity
Examine autocorrelation
Examine model specification errors
Examine stationary/nonstationary
Examine cointegration
Discuss volatility

Conclusion and make recommendation to the investment manager (suggested words: 200 words)
Additional information:

Financial information can be obtained from the OSIRIS(Links to an external site.) (Links to an external site.) database accessible through the to an external site or via Stock Exchange, annual reports, official company website or other professional resources.

Data can be collected from finance.yahoo.com, i.e. book-to-market ratio, price-earnings ratio, market capitalization, P/E ratio, and any other criterion that interests you.

You can find this information by choosing a company and then clicking on Statistics.

CAPM, Fama and French 3 factors and 5 factors data can be downloaded from Kenneth R. French – Data Library
https://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html (Links to an external site.)

Bank of England website provides statistical releases in the UK
https://www.bankofengland.co.uk/news/statistics

Explain the differences between the futures trading execution process and Over-the-Counter (OTC) trade execution

Required Summary (200-250 words)
Select a country of your choice, briefly describe most commonly traded financial markets and
their importance to the economy, including an overview of the current economic position, the
balance of trade and the role of the Central Bank.

Your answers to Tasks 1 & 2 must then relate to your chosen country.
Answers:

Evaluate the impact of your country’s economic cycle on the long-
term trends of financial asset prices. You are required to provide
examples to support your answer. (20 marks)

Using your selected country, analyse how financial markets have
been impacted by a recent political event. Include charts to
illustrate your analysis. Your answer should include a brief outline
of the political event at the start of your answer.
(20 marks)

(a) Analyse THREE different types of investment risk (15 marks)
(b) Examine how the impact of each risk can be minimised
(15 marks)

 

(a) Explain how and where options are traded. (10 marks)
(b) Justify the use of options for speculation and hedging. You
are required to provide examples to support your answer.
(10 marks)

(c) Explain the differences between the futures trading execution
process and Over-the-Counter (OTC) trade execution.
(10 marks

Consider an investment in an international venture. Identify the advantages and disadvantages of this investment, based upon the following:

International Financial Management

Consider an investment in an international venture. Identify the advantages and disadvantages of this investment, based upon the following:

Forecasting foreign currency exchange rates

Interest rate and relative purchasing power parity, and forecasting

Foreign investment policies

Government limitations on foreign investments

Trade regulation and policies

International finance regulations

Narnia has introduced a withholding tax of 15% on dividends (though not on interest payments). How would this change the optimum funding?

Quiz

1. Calculate the following cross rates

a. The 8/F rate given 1.3874 $/€ and 110 F/$ b. The CHF/€ rate given 1.3874 $/8 and 0.9148 CHF/$ c. The €/f rate given 1.3874 $/€ and 1.1807 $/€ d. The AUD/CHF rate given 0.9151 CHF/$ and 1.3620 AUD/$

2. Given Forward Rate is CHF1.50/USD, iusn = 4.2%, icHF=0.4%, estimate the spot price today.

3. Suppose that the one-year interest rate is 3% in the United States, the spot exchange rate is $1.18/€, and the one-year forward exchange rate is $1.14/€. What should the one-year interest rate be in the euro zone?

4. Following quotations are available to you: (You may buy or sell at the stated rates.) Assume that you have an initial DEM 1 000 000 available. Is triangular arbitrage possible? If so, explain the steps and compute the profit. Lehman Brothers: 4.8600FRF/GRD Bear Stearns: 1.4200 DEM/GRD Bank of Scotland: 3.4400 FRF/DEM

5. The corporate tax rate for a company head office is 27%. The corporate tax rate for a subsidiary in Narnia is 20%. Narnia has a thin-cap. regulation that requires at least a third of funding for the subsidiary comes from equity. How would you fund the subsidiary from head-office?

6. Narnia has introduced a withholding tax of 15% on dividends (though not on interest payments). How would this change the optimum funding?

7. What contribution would be made to head office post-tax profit in question 6?

What type of financial decision is the company making with the expansion?The disagreement among the shareholders, BOO and the managers is popularly points. what in finance?

Mini-Case Analysis 1: Amazing Brentwood Inc

1. Elven MO information, determine the value of the terminal loss or recapture at the end of the year.

2. What are the earnings before interest and taxes in the year 2018?

3. What is the after-. net profit for the year 2018?

The company plans to efficiently maintain the assets in the long run.

The average total assets of the firm are 345,000.

The firo also plans to cover the solvency ratios in a reasonable manner. seek additional refinancing from the caotal providers.

The company has 50,OLG shares outstanding.

The company plans to raise rnore capital by issuing shares.

The company’s ROE has been determined to be 109 which la likely to go up in the next year.

The company la con.rn. about the profitability ratios of the company and it is seeking your advice to improve them.

The sales of the recent marter of 2019 have gone down to 55,800 whereas the net earnings are 3,200.

The company planning to expand in the future. It is planning to open one more branch in the Greater Vancouver region.

The shareholders, Board of Directors (800) and the managers may have a disagreement on its decision though.

4. What is the Asset turnover for the company?

5. Calculate the TIE ratio and also r.pond whether it is satisfactory or not?

6. How will issuing more shares affect the capital structure of the company?

7. What does the firo need to do to raise its ROE?

8. Calculate the profit margin ratio of the company and comment on the profitability performance of the numPacY.

S What type of financial decision is the company making with the expansion?

10. The disagreement among the shareholders, BOO and the managers is popularly points. what in finance?

How do purchasing power parity, interest rate parity, and the Fisher Effect explain the relationships between the current spot rate, the future spot rate, and the forward rate?

Answer the following questions

1) What are the factors for determining the size of investment in accounts receivable? Which of these factors is under the control of the manager?

2) If the firm experienced no bad debt losses over the past year, would this indicate proper credit management? Yes or no?

3) What are the limitations of breakeven analysis?

4) What are the additional factors encountered in international, as compared to domestic, financial management?

5) How do purchasing power parity, interest rate parity, and the Fisher Effect explain the relationships between the current spot rate, the future spot rate, and the forward rate?

6) What risks are associated with direct foreign investment? How are these risks different from domestic investment problems? If so, why?

Identify and explain the main factors causing change in values in different market sectors.

VALUATION

Upon successful completion of the module, you will be able to:

1. Identify and explain the main factors causing change in values in different market sectors.

2. Apply conventional valuation methods to value freehold property interests for different purposes.

3. Apply conventional methods to value leasehold interests

4. Examine the RICS Valuation – Global Standards and understand when and how to use them

Practical, Professional or Subject Specific Skills
On completion you will have had the opportunity to/will be able to:

5. Carry out in-depth conventional valuations.

6. Demonstrate ability in key skills to conduct property valuation.

7. Recognise the limitations of valuation techniques and evaluate their effectiveness in a wide range of circumstances.

Transferable Skills and other attributes (maximum of 5)

On completion you will have developed:

8. The ability to analyse information in a variety of ways.

9. The ability to arrive at logical conclusions based on the evidence available.

Evaluate the two matrices using current actions by each country to see which matrix is most likely correct.

Unit 4 Course Work

Incorporate the concepts of game theory with international trade and tariffs.

Set up two payoff matrices. Set up the first payoff matrix such that the outcome will be harmful to both countries.

Set up the second payoff matrix such that the outcome will be beneficial to the United States.

Evaluate the two matrices using current actions by each country to see which matrix is most likely correct.

Develop a fiscal condition analysis of Maumelle, Arkansas analyzing the most recent three-year revenue and expenditures data of Maumelle, Arkansas.

Fiscal Condition Analysis Assignment

Description

Refer to the instructions, template and guide first. For this assignment 9-page (not including title page, reference page, and any appendices). More specifically, you will need to:

1) Develop a fiscal condition analysis of Maumelle, Arkansas analyzing the most recent three-year revenue and expenditures data of Maumelle, Arkansas.

2) Utilize Excel Tools and charts to compute and create tables to create a fiscal condition analysis for Maumelle, Arkansas.

Your fiscal condition analysis will focus on the five (5) most important financial indicators for local governments:

Total Revenues

Property Taxes

Sales Taxes

Operating Expenditures

Personnel Costs.

Each paper must contain citations to the course texts book, assigned readings, and a minimum of 5 additional sources not including the course textbooks, assigned readings, and the Bible.

Don’t forget to add all attachments as references including the Biblical used when incorporating scriptures’ and Biblical integration. You will also have find additional sources. have tried to include the references at the top of each attachment.