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BAFN200 PRINCIPLES OF FINANCE
Semester 1 2020
GROUP ASSIGNMENT
| Assessment weight Due Word limit |
: : : |
20% 17 May 2020 AEST 24.00 2,500 ±10% words |
Purpose: Purpose of this assignment is to provide practical application of some key
financial concepts on real-world examples. It is also aimed to foster students’ ability to
work in teams.
Instructions about the group assignment
The assignment will be completed in groups of up to four students. You should give
careful consideration to the selection of members comprising the group. It is very
important for all members to take an active part in completing the assignment and
make an equal contribution.
For this assignment, students are required to choose the group members (up to four
students in one group) and submit the names and student IDs of their group members
to the lecturer-in-charge 10 April 2020. You are required to seek the prior approval of
the lecturer-in-charge for the company you have selected before embarking on the
project. You can choose a company from the following list. Students must notify the
Lecturer-in-Charge in a timely manner and provide substantiating documentation of
any problems in relation to group work.
Each student should also complete the “Peer Evaluation of Team Members” sheet and
email it in to the lecturer-in-charge.
| 1 | Challenger (ASX Code: CGF) | Financials |
| 2 | XERO Limited (ASX Code: XRO) | Software and services |
| 3 | Lindsay Australia Ltd | Transportation |
| 4 | Slater & Gordon Limited (ASX Code; SGH) | Consumer services |
| 5 | Cochlear Limited (ASX Code: COH) | Healthcare equipment and services |
| 6 | Sigma Pharmaceuticals (ASX Code: SIG) | Healthcare equipment and services |
| 7 | Funtastic Limited (ASX Code: FUN) | Retailing |
| 8 | LawFinance Limited (ASX Code:LAW) | Software and supplies |
| 9 | Carsales (ASX Code: CAR) | Media and entertainment |
| 10 | Yellow Brick Road Holdings Limited (ASX Code: YBR) |
Diversified financials |
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You should answer the following questions in the context of the company you have
chosen.
| (i) | Analyse capital structure of the company for the past 5 years (2015-2019)? What major factors would they have considered in determining their working |
capital strategy? Does capital structure have an effect on company’s return on
equity, return on assets and financial risk? Explain. (Show your workings)
(ii) Calculate the company’s weighted average cost of capital (WACC) for each
year 2015 through 2019 (show your workings). Comment on causes and
ramifications of changes in WACC. How confident are you of your estimate of
WACC? (Make assumptions where the input is not available and state the
rationale behind the assumption.) (Show your workings)
(iii) Comment on the dividend policy followed between the years 2015-2019.
Calculate dividend payout ratio over the past 5-year period. Is there a pattern
in dividend payouts? How can you describe the dividend policy of the
company? (Show your workings)
(iv) Calculate the company’s working capital for each year (2015-2019). Based on
your analysis, comment on causes and ramifications of changes. (Show your
workings)
Submission Guidelines
Each group should nominate only one member to submit the assignment.
Checklist before submission:
o Typed using Microsoft Word in Ariel 12 points with double spacing
o Parts completed by each student are specified
o Displayed a one-inch margin on all sides.
o Each question is numbered or is answered under an appropriate title
o Pages are numbered
o The form “Peer Evaluation of team members” is completed and sent to the
lecturer in charge via email.
o Cover page is attached at the front of the assignment. The cover page can be
downloaded from the following link:
o https://students.acu.edu.au/home/panels/administration/forms/assessment_and_
assignment_forms. You may submit cover sheets separately.
o Appropriately cite original work, author(s) etc. Citation and referencing must
conform to Harvard referencing format both in the body of the paper and its
attached reference section.
o Assignment submitted via Turnitin by 17 May 2020 AEST 24.00 hours
PLEASE REMEMBER TO CHECK THE VERSION YOU ARE UPLOADING IS THE FINAL
ONE. TURNITIN DOES NOT ALLOW YOU TO WITHDRAW AND RESUBMIT.
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Marking Rubric
| Maximum marks |
||
| Introduction | 2.5 | |
| (i) | Analyse capital structure of the company for the past 5 years (2015-2019)? What major factors would they have considered in determining their working capital strategy? Does capital structure have an effect on company’s return on equity, return on assets and financial risk? Explain. Show your workings |
5 |
| (ii) | Calculate the company’s weighted average cost of capital (WACC) for each year 2015 through 2019 (show your workings). Comment on causes and ramifications of changes in WACC. How confident are you of your estimate of WACC? (Make assumptions where the input is not available and state the rationale behind the assumption.) Show your workings |
5 |
| (iii) | Comment on the dividend policy followed between the years 2015- 2019. Calculate dividend payout ratio over the past 5-year period. Is there a pattern in dividend payouts? How can you describe the dividend policy of the company? Show your workings |
5 |
| (iv) | Calculate the company’s working capital for each year (2015-2019) and comment on causes and ramifications of changes. Show your workings |
5 |
| Conclusion | 2.5 | |
| Total | 25 |
Lodgment of assignment
Assignments must be submitted with an ACU cover sheet which can be downloaded
from the following link. It is imperative that the cover sheet is signed off by the student
who submitted the work.
https://students.acu.edu.au/administration_and_enrolment/forms/assessment_and_a
ssignment forms
Students must submit assignments electronically via Turnitin. The software used for
checking originality compares works submitted by students with published material
from a variety of sources including the Internet. A Turnitin score of 10% or greater will
be considered cause for concern.
Due dates will be strictly adhered to. However, in the case of exceptional
circumstances, students may apply for extension in the following manner.
In accordance with the ACU Assessment Procedures (para 3).
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You may seek extension of submission date for an assessment task prior to the due
date by submitting the Application for Extension of time for an Assignment (EX) form.
https://www.acu.edu.au/__data/assets/pdf_file/0011/126668/EX_-
_Application_for_Ext_of_Time_for_Submission_of_Assessment.pdf
You may seek up to five working days after the relevant due date by submitting the
Special Consideration form.
https://www.acu.edu.au/__data/assets/pdf_file/0010/48493/SC_Application_for_Spe
cial_Consideration_20170615.pdf
Assessment tasks submitted after the due or extended date will incur, for each whole
or part of a calendar day that the work is overdue, a 5% penalty of the maximum
marks available for that assessment task up to a maximum of 15%. Assessment
tasks received more than three calendar days after the due or extended date will not
be allocated a mark.
PEER EVALUATION OF TEAM MEMBERS
Students should also complete the attached “Peer Evaluation of Team Members” form
and hand it in to the lecturer-in-charge.
The purpose of this evaluation is to provide feedback to the lecturer-in-charge
regarding individual group members’ contribution to the group assignment. This is
essential because some members of the group may end up not contributing as much
as everyone else contributes.
Please write the names of each of your group members and indicate what percentage
of the final mark you feel they deserve. Please note that this percentage of contribution
does not necessarily have to relate to the amount of work put in by each person but
should consider the kind of workloads agreed by the group.
Rather than deciding this in secret, groups should ideally discuss the matter to try and
come up with an agreed combination. If you have not contributed fairly, please be
honest about this. Do you really deserve the same mark as the other members of your
group? Any group that wishes to discuss this should come and see me.
Each group member should email the following “Peer Evaluation of Team Members
Form” to the lecturer in charge via email.
| Name (write full name) |
Meetings | Quality and quantity |
Cooperation and team work |
Follow through |
Total score |
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Meetings
1 Rarely attended meetings and when attending arrived late or left early
2 Attended some group meetings, arrived late or left early on occasion
3 Attended most group meetings, arrived on time, stayed for length of time
scheduled
4 Attended all meetings, arrived on time, stayed longer than the scheduled
meeting time
Quality and quantity of output
1 Contributed very little, if at all, to the paper
2 Ideas were weak and input limited, performed only work assigned
3 Provided useful input most of the time and was helpful in getting tasks
accomplished
4 Always provided valuable input into the project and facilitated discussions
Cooperation and team effort
1 Created problems and was disruptive
2 Went along with whatever the rest of the group decided
3 Sometimes led the group, provided support for other team members on
occasion
4 Led the group in establishing a cooperative team environment
Follow through
1 Rarely completed assignments, work completed was often not useful
2 Required some prompting to complete assignments on time, several
changes required
3 Completed work on time with some changes required
4 Completed assigned work on time and error free
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APPENDIX 2
Rubric – Group Assignment
| ILOs | Criteria | Standards | ||||
| Below Expectations | Meets Expectations | Exceeds Expectations | ||||
| Level 1 (NN) | Level 2 (PA) | Level 3 (CR) | Level 4 (DI) | Level 5 (HD) | ||
| LO2 | An understanding of the role of accounting and financial information in the financial decisions that are necessary for business success |
Displays poor understanding of risk and return relationships to the valuation of financial assets. Fails to address the question posed. Arguments are implausible and unsubstantiated. Limited and/or irrelevant research. |
Displays some basic understanding of risk return relationships to the valuation of financial assets. Briefly answers the question posed. Arguments are generally plausible with some evidence. Basic research. |
Displays above average understanding of risk return relationships to the valuation of financial assets. Provides above average answers the question posed. Arguments are generally plausible with some evidence. Adequate research |
Displays high level understanding of risk return relationships to the valuation of financial assets. Demonstrates high standard of insight and quality. Arguments are well supported. More than adequate research |
Display extraordinary understanding of risk and return relationships to the valuation of financial assets. Demonstrates exceptionally insightful, interesting and fully supported arguments. A highly structured and comprehensive response to the task. Extensive and relevant research. |
| LO3 | Examination of trade-offs between debt and equity in the capital structure and its implications on assets and return on equity and public perception of the business entity |
Displays poor understanding of debt and equity and its implications. Fails to address the question posed. Arguments are implausible and unsubstantiated. Limited and/or irrelevant research. |
Displays some basic understanding of debt and equity and its implications. Briefly answers the question posed. Arguments are generally plausible with some evidence. Basic research. |
Displays above average understanding of debt and equity and its implications. Provides above average answers to the question posed. Arguments are generally plausible with some evidence. Adequate research |
Displays high level understanding of debt and equity and its implications. Demonstrates high standard of insight and quality. Arguments are well supported. More than adequate research |
Display extraordinary understanding of debt and equity and its implications. Demonstrates exceptionally insightful, interesting and fully supported arguments. A highly structured and comprehensive response to the task. Extensive and relevant research. |
| LO6 | Evaluation of dividend policy and working capital management |
Displays poor understanding of dividend policy and working capital management. Fails to address the question posed. Arguments are implausible and unsubstantiated. Limited and/or irrelevant research. |
Displays some basic understanding of dividend policy and working capital management, Arguments are generally plausible with some evidence. Basic research. |
Displays above average understanding of dividend policy and working capital management Arguments are generally plausible and often substantiated. Adequate research |
Displays good understanding of dividend policy and working capital management. Arguments plausible and well supported. More than adequate research |
Displays extraordinary understanding of dividend policy and working capital management. . All arguments are plausible and supported with exceptional evidence. Extensive and relevant research. |
| Report organisation (Genre, pagination, format, spacing, grammar, spelling, punctuation, referencing) |
Poorly-written with errors in spelling and grammar. Mistakes in citations. |
Written according to the academic and adheres to academic genre (e.g., with introduction, body of the text, and conclusion). Has accurate spelling, grammar and sentence construction. |
Well-written and adheres to academic genre. There are no mistakes in citation. |
Very well-written and adheres to academic genre (e.g., with introduction, body of the text, and conclusion). There are no mistakes in citation. |
Expertly written and adheres to academic genre. Extraordinarily organised presentation with respect to organisation, clarity of expression, grammar, punctuation, pagination, spacing |
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| Peer evaluation | ||||
| 1 | 2 | 3 | 4 | |
| Contributions | Rarely provides useful ideas when participating in the group and in classroom discussion. May refuse to participate. |
Sometimes provides useful ideas when participating in the group and in classroom discussion. A satisfactory group member who does what is required. |
Usually provides useful ideas when participating in the group and in classroom discussion. A strong group member who tries hard! |
Routinely provides useful ideas when participating in the group and in classroom discussion. A leader who contributes a lot of effort. |
| Problem-solving | Does not try to solve problems or help others solve problems. Let’s others do the work. |
Does not suggest or refine solution but is willing to try out solutions suggested by others. |
Refines solutions suggested by others. | Actively looks for and suggests solutions to problems. |
| Attitude | Is often publicly critical of the project or the work of other members of the group. Is often negative about the task(s). |
Is occasionally publicly critical of the project or the work of other members of the group. Usually has a positive attitude about the task(s). |
Is rarely publicly critical of the project or the work of others. Often has a positive attitude about the task(s). |
Is never publicly critical of the project or the work of others. Always has a positive attitude about the task(s). |
| Focus on the task | Rarely focuses on the task and what needs to be done. Let’s others do the work. |
Focuses on the task and what needs to be done some of the time. Other group members must sometimes nag, prod, and remind to keep this person on task. |
Focuses on the task and what needs to be done most of the time. Other group members can count on this person. |
Consistently stays focused on the task and what needs to be done. Very self directed. |
| Working with Others | Rarely listens to, shares with, and supports the efforts of others. Often is not a good team player. |
Often listens to, shares with, and supports the efforts of others, but sometimes is not a good team member. |
Usually listens to, shares, with, and supports the efforts of others. Does not cause “waves” in the group. |
Almost always listens to, shares with, and supports the efforts of others. Tries to keep people working well together. |
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