The document provides guidelines for a group assignment assessing students' understanding of business finance concepts. Students must form groups to analyze the financial performance of a publicly listed company over two years. They are required to: 1) Describe the company's operations and competitive advantages, 2) Analyze financial ratios to assess profitability and efficiency, 3) Graph share price movements and compare to market indices, 4) Calculate cost of equity, 5) Determine capital structure and weighted average cost of capital, and 6) Provide a recommendation report for an investor client. The assignment aims to examine key finance theories and metrics through a case study analysis.

1. HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
HC2091 Business Finance
Assessment Details and Submission Guidelines
Trimester T1 2019
Unit Code HC2091
Unit Title Business Finance
Assessment Type 2
Assessment Title Group Assignment
Purpose of the
assessment (with ULO
Mapping)
Students are required to form a group from 2 to 5 members to
study, undertake

2. research, analyse and conduct academic work within the areas
of business finance
covered in learning materials Topics 1 to 10 inclusive. The
assignment should examine
the main issues, including underlying theories, implement
performance measures used
and explain the firm financial performance. Your group is
strongly advised to reference
professional websites, journal articles and text books in this
assignment (case study).
Weight 30 % of the total assessments
Total Marks 30
Word limit Not more than 2500 words
Due Date Registration of groups and chosen companies: 5 pm
Friday, Week 4
Final Submission of Group Assignment: Midnight (23:59 pm.)
Sunday, Week 10
Late submission incurs penalties of 5 (five) % of the assessment
value per calendar
day unless an extension and/or special consideration has been
granted by the
lecturer prior to the assessment deadline.
Submission
Guidelines

3. along with a
completed Assignment Cover Page. Please make sure that your
group
member’s name and surname, student ID, subject name, and
code and
lecture’s name are written on the cover sheet of the submitted
assignment.
-
pt Arial font and
2 cm margins on all four sides of your page with appropriate
section headings

4. and page numbers. When you submit your assignment
electronically, please
save the file as ‘Group Assignment- your group name .doc’.
You are required
to submit the assignment at Group Assignment Final
Submission, which is
under Group Assignment and Due Dates on Black Board.
listed
appropriately at the end in a reference list using Harvard
referencing style.
Submitted work should be your original work showing your
creativity. Please
ensure the self-check for plagiarism to be done before final
submission
(plagiarism check is not over 30% of similarity, except the
cases where the
similarity is reflected by using the same format of Holmes’
assignment, the
same references or sources of data) in accordance with
SafeAssign Student
Guide in Black Board. Please note that it takes 48 hours for the
self-check

5. report to be available for your viewing.
Page 2 of 6
HC2091 Business Finance
final grade for the
Unit. Please make sure that you submit the correct file. Any
appeal relating to
submitting wrong files after the deadline will not be considered.
Assignment Specifications
ASSIGNMENT TASK
This assignment task is a written report and analysis of the
financial performance of one selected listed
company on the ASX in order to provide financial and
investment advice to a wealthy investor. This
assignment requires your group to undertake a comprehensive
examination of a firm’s financial
performance based on update financial statements of the
selected company
BACKGROUND
You’re a group of investment analysts who work for a large
investment consulting firm based in Australia.
There’s one big institutional investor from overseas that is

6. interested in investing in the Australian market.
You’ve been asked to choose a listed company in Australia (in
the industry you think will have the most
promising future for investment) then evaluate it and give your
client financial advice on whether or not
she/he should include the share of that company in her/his
investment portfolio.
REQUIREMENTS
Create your group’s “business name” under which your group
will be providing the financial advisory services.
Choose one listed company that your group will
investigate/analyse for the purposes of possible
recommendation to your client. The group should obtain all
information about the selected company from
this web site: www.asx.com.au.
Obtain a copy of the last two financial years (2016-2017 and
2017-2018) Financial Statements of the chosen
company (annual reports are accessible via company websites).
Your group can downloaded these documents
from the suggested web site using the firm’s code (example,
BHP- for BHP Billiton Company, etc.).
STAGES TO BE COMPLETED

7. 1 Description of operation and comparative advantages of the
selected company.
2 Identify and conduct a trend analyse with the two groups of
financial ratios, including profitability and
operating efficiency of the selected company
3 Analyse monthly share prices movements of the selected
company within 2 years, compare the
movement with the All-Ord-Index
4 Calculate cost of equity for the selected company
5 Identify capital structure and calculate WACC of the selected
company
6 Recommendation Letter
7 Final Submission of Complete Assignment on Blackboard
(Week 10)
http://www.asx.com.au/
http://www.asx.com.au/
http://www.asx.com.au/
http://www.asx.com.au/

8. Page 3 of 6
HC2091 Business Finance
ASSIGNMENT STRUCTURE
Assignment Structure should be as the following:
Abstract
(no more than 150 words)
I. INTRODUCTION
Briefly introduction of you work: the purpose of assignment,
the selected company, your findings and
structure of your assignment (not more than 200 words)
II. FINANCIAL ANALYSIS OF SELECTED COMPANY
2.1. Description of the company
Prepare a brief description of the selected company, outlining
the core activities, competitive advantages,
and the market in which it operates within and any factors in the
company’s history which you consider
help present a “picture” of your chosen company.
2.2. Calculation and analysis of financial ratios
Using financial data obtained from current financial statements

9. of your selected company for the given 2
years to calculate the following ratios and present them in
relevant charts or tables. As your client is
especially interested in the profitability and operating
efficiency of the company, provide analysis on the
company performance and justify your opinions using the data:
- Profitability ratios
- Operating efficiency ratios
2. 3.Graphs and comparison of share price movements
Using the information from the ASX website: www.asx.com.au
to prepare one or more graph displaying
movements in the monthly share prices over the last two years
for the chosen company that you are
investigating. Data of share price movement of the company
should be plotted against All Ordinaries
Index.
Providing an analysis to compare the movements in the
companies’ share prices to the All Ordinaries
Index. For instance, whether your selected company price trend
is more or less volatile compared to the
index? How closely it is correlated with the All Ordinaries
Index, above or below the index?
Do a research to identify the factors that affected the share
price movements of the company within 2
years.
2.4. Calculation cost of equity
Based on the data of just paid dividend, current share price and
assumption that the company will

10. maintain a constant dividend growth rate of 4% from now on,
calculate the cost of equity of your selected
company, using constant dividend growth model.
2.5. Identify the capital structure
1. Identify and discuss the capital structure of the company by
calculating the weights of debts and equity
capital (ordinary shares and preferred shares if any). Assume
that the current required rate of returns for
Page 4 of 6
HC2091 Business Finance
the industry debts (kD) is 5%, the required rate of returns for
preference shares (kP) is 10%, using your result
of calculated capital structure and cost of equity (kE), calculate
the weighted average cost of capital (WACC)
for the company. Comment on any change in the company’s
capital structure through years. Support your
comments and analysis by further research.
2.6. Consulting Report
After completion of your analysis, you need to present a well-
structured report to your client using
appropriate style and language. Structure of the Report: will
include:

11. 1. Title
2. Introduction
3. Table of Content
4. Body (in text citation: paraphrased or quotation to support
your arguments)
5. Conclusion
6. Recommendation
7. Reference lists (Harvard Style)
III. CONCLUSION
Summarize the outcomes of your works (not more than 300
words)
Marking criteria
Marking criteria Weighting
Description of the companies 3 marks
Calculation and analysis of financial ratios 5 marks
Graphs and comparison of share price movements 5 marks
Calculation cost of equity 5 marks
Identify the capital structure 5 marks
Consulting Report 5 marks
Presentation, structure and academic writing 2 marks

12. Total marks 30 marks
TOTAL Weight 30 %
Assessment Feedback to the Student:
Page 5 of 6
HC2091 Business Finance
Marking Rubric
Content Excellent

13. (80%-full marks
given)
Very Good
(70-79% marks
given)
Good
(61-69% marks
given)
Satisfactory
(50-60% marks
given)
Unsatisfactory
(0-49% marks
given)
1 Outstanding data
and information
provided to answer
the questions;
Independent and
deep analysis,
based on wide
research;
Issues and factors
are presented and
analyzed in a logical

14. interconnectedness;
Broad and credible
sources of
references in
proper referencing
style.
Very good data
and information
provided to
answer the
questions;
Very good
research
conducted;
Issues are
discussed based
on very good
research and in
relation to each
other;
Very good
references in
proper
referencing style;
Adequate data and
information
provided to answer
the questions;

15. Reasonable
research
conducted;
Issues are
discussed based on
sufficient research
and in relation to
each other;
Adequate
references in
proper referencing
style;
Satisfactorily meet
the requirements
of the assignment
but with limited
data and
information
provided to
answer the
questions;
Limited research
conducted;
Limited
references;
No specific data
and information
provided to
answer the

16. questions;
No research basis
for analysis;
Merely relying on
secondary data
from internet;
No reference.
2, 4 and
5
Calculation and
presentation are
demonstrated
clearly;
Ratios, cost of
equity, capital
structure and WACC
are derived and
justified with
exemplary analysis
that based on
current issues and
key factors;
Implications and
explanation are
provided
convincingly
Consistent 2 year

17. analysis and
properly justified
for inclusions or
exclusions.
Very good
demonstration of
calculations;
Ratios, cost of
equity, capital
structure and
WACC are
derived with very
relevant
implications and
explanation;
Justification and
assumptions are
very clear;
Very consistent 2
year analysis.
Adequate
demonstration of
calculations;
Ratios, cost of
equity, capital
structure and
WACC are derived
with relevant
implications and
explanation;

18. Justification and
assumptions are
clear;
Consistent 2 year
analysis.
Calculations are
demonstrated;
Financial ratios,
cost of equity,
capital structure
and WACC
provided but not
sufficiently;
Providing limited
analysis of the
ratios;
Time analysis is
given but limited.
Calculations are
not demonstrated
for the required
financial
fundamental
ratios, cost of
equity, capital
structure and
WACC
Proving no

19. explanation of
implications of
the ratios and
calculations;
Single year
analysis.
3 Providing well
established graphs
of the chosen
company’s share
price, which shows
obvious price trends
Providing very
well constructed
graphs of share
price of the
chosen company
Providing adequate
graphs of share
price of the chosen
company
Providing graphs
of share price but
may not in
relevant time
frame;
Providing no
graphs of share

20. price of the
chosen company
Page 6 of 6
HC2091 Business Finance
in the given time
frame
Analyzing and
comparing the
chosen share price
with All Ordinaries
Index with
exceptional good
justification and
data based analysis
Outstanding
research is
conducted with
wide based sources
and proper
referencing
Indicating clearly
the movements
of share price

21. with very good
comments and
explanation
Very good
analysis
comparison with
All Ordinaries
Index with
justification based
on reliable data
within proper
time frame;
Very good
research
conducted with
relevant
referencing
Indicating clearly
the movements of
share price
Relevant analysis
comparison with
All Ordinaries Index
with justification
based on reliable
data within proper
time frame;

22. Adequate research
conducted with
relevant
referencing
Analysis and
comparison of the
share price trend
with All Ordinaries
Index is provided
but not well
presented;
Research is
conducted, but
might be with
inadequate
referencing
No adequate
analysis and
comparison of
price trend
No relevant
research and
referencing
6
Presenting a wide
ranges of adequate
recommendations

23. that exemplarily
supported by
justification and
analysis;
Using data and
information derived
from financial
analysis completed
in an efficient,
analytical and
logical manner;
Demonstrated a
high level of
understanding and
skills of academic
writing by means of
criticism, logical
argument, and
interpretation of
data and
information.
Presenting very
sensible
recommendations
that properly
supported by
justification and
analysis;

24. Data and
information
derived from
financial analysis
are very
efficiently used to
support the
recommendations
Demonstrating
the ability to
present the ideas
in outstanding
analytical and
contextual level
Presenting
adequate
recommendations
that properly
supported by
justification and
analysis;
Data and
information
derived from
financial analysis
completed are
properly used to
support the
recommendations

25. Demonstrating the
ability to present
the ideas in proper
analytical and
contextual level
Addressing limited
recommendations;
Demonstrating
limited
justification and
analysis of the
given
recommendations;
Demonstrating
limited skills of
academic writing
in terms of
structure,
presentation,
wordings and
referencing
Providing no
recommendations
or inadequate
recommendations
for investment

26. decisions;
No relevant
justification using
data and
information
derived from the
analysis of
financial
statements;
Failing to meet
the requirements
of academic
writing in terms
of structure,
presentation,
wordings and
referencing