1 HC2091 Finance for Business Trimester 3 2.docx

1
HC2091: Finance for Business
Trimester 3 2018
Group Assignment
Assessment Value: 30%
Due Date: Sunday 23:59 pm, Week 10
Group: 2 - 5 students
Length: 3000 words ± 10%
INSTRUCTIONS
Students are required to form a group to study, undertake
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).
Tasks
This assessment task is a written report and analysis of the
financial performance of a 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 chosen companies.
Group Arrangement
This assignment must be completed IN Group. Each group can
be from 2 to maximum 5 student
members. Each group will choose 1 company and once the
company has been chosen, the other
group cannot choose the same company. First come first served
rule applies here, it means you
need to form your group, choose on company from the list of

ASX and register them with your
lecturer as soon as possible. Once your lecturer registers your
chosen company, it cannot be
chosen by any other group. Your lecturer then will put your
group on Black Board to enable you
to interact and discuss on the issues of your group assignment
using Black Board environment.
However, face to face meeting, discussion and other methods of
communication are needed to
ensure quality of group work. Each group needs to have your
own arrangement so that all the
group members will contribute equally in the group work. If
not, a Contribution Statement,
which clearly indicated individual contribution (in terms of
percentage) of each member, should
be submitted as a separate item in your assignment. Your
individual contribution then will be
assessed based on contribution statement to avoid any free
riders.
2
Submission

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.
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.
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 report to
be available for your viewing.
Always keep an electronic copy until you have received the
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.
Deadlines
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.
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 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.
Required:
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.
http://www.asx.com.au/
3
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.).
1.Description of the
companies
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.
5 marks
2.Calculation and
analysis of financial
ratios
Using financial data obtained from current financial statements
of
your selected company for the given 2 years to calculate the
following ratios and present them in relevant charts or tables.

Provide analysis on the company performance and justify your
opinions using the data:
- Liquidity ratios
- Profitability ratios
- Market value ratios
5 marks
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.
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.
5 marks
4. Calculation cost of
equity
1. Go online to http://www.reuters.com/finance/stocks/ and type
in the
code for your company into the Search Stocks field and click on
the
magnifying glass button.
http://www.reuters.com/finance/stocks/
4
What is the calculated beta (β) for your company?

If the risk free rate is 6 % and the market risk premium is 7 %,
use
the Capital Asset Pricing Model (CAPM) (SML approach) to
calculate the required rate of return for the company’s shares.
5 marks
5. Identify the capital
structure
2. Identify and discuss the capital structure of the company by
calculation capital structure ratios and weights of debts and
equity
capital. Comment on any change in the company’s capital
structure
through years. Support your comments and analysis by further
research.
5 marks
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:

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)
5 marks
Academic Writing, Referencing and Plagiarism
Presentation of written work
The report must have an academic written structure including an
introduction, body and
conclusion.
▪ Use numbers to structure body of the report (e.g., “2.5.
Research via the internet”).
▪ Provide an explanation on each of these issues (points) and
explain how they confirm the
underlying financial management theory.
▪ You are required to use Times New Roman font, size 12 with
1.5 line spacing.

▪ Please insert page numbers into your assignment and use 3 cm
margins.
A high standard of work is always expected, so poorly
presented work may be returned unmarked
with a request to re-submit.
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Referencing
When writing your assignments, a reference must be included
every time you use someone else’s
ideas or information. In-text referencing of ALL sources,
whether academic books, journal
articles, newspaper articles, material from the Internet etc.,
must be cited in the main text of the
assignment itself. Harvard Style referencing is required for this
assignment. A reference must be
included when you:
• Paraphrase (express someone else’s idea in your own words).
• Quote (express someone else’s idea in their exact words).
• Copy (financial statement, reproduce a diagram, graph or table
from someone

else’s work).
Example:
Titman, S., Martin, T., Keown, A.J., Martin, J.D, Financial
Management: principles and
applications, 7th Edition, Pearson Education, Melbourne, 2016,
Australia.
Halili, E, Saleh, A and Zeitun, R (2015), 'Governance and Long-
Term Operating
Performance of Family and Non-Family Firms in Australia',
Studies in Economics and
Finance, vol.32, no.4, pp.398-421.
History of ASX, viewed Nov 07 2017,
https://www.marketindex.com.au/history
Plagiarism, collusion and cheating
Holmes Institute regards most seriously any act of dishonesty in
assessments such as plagiarism,
collusion, cheating, re-submission of previously marked work in
different units, examination
misconduct and theft of other students’ work.
In short:
‘Plagiarism’ means to take and use another person’s ideas and
pass these off as your own by failing

to give appropriate acknowledgement, that is, not indicating by
referencing that the ideas expressed
are not your own.
‘Collusion’ (or un-authorized collaboration) means joint effort
in preparing material submitted for
assessment, between students or others, except where this has
not been approved by the lecturer in
charge of the unit.
‘Cheating’ means to obtain an unfair advantage in an
examination or in other written or practical
work required to be submitted or completed by a student for
assessment. If the passing off was
done intentionally, you have cheated; if it was unintentional,
the offence you have committed is
the academic misdemeanor of failing to reference a source
correctly.
Acts of dishonesty in assessment could result in penalties
including failure in the Unit and possible
exclusion from Holmes Institute. If you are unsure about this,
please speak to your lecturer.

6
CRITERIA FOR GROUP ASSIGNMENT ASSESSMENT
Content Unsatisfactory
(0-49% marks
given)
Limited
Demonstration
(50-60% marks
given)
Proficient
(61-79% marks
given)
Exemplary
(80%-full marks
given)

1 No specific data
and information
provided to
answer the
questions;
No research basis
for analysis;
Merely relying on
secondary data
from internet;
No reference.
Limited data and
information
provided to
answer the
questions;
Limited research
conducted;

Limited
references;
Adequate data
and information
provided to
answer the
questions;
Reasonable
research
conducted;
Issues are
discussed based
on sufficient
research and in
relation to each
other;
Adequate
references in

proper
referencing style;
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
interconnectedness;
Broad and credible
sources of

references in
proper referencing
style.
2, 4
and 5
Calculations are
not demonstrated
for the required
financial
fundamental
ratios, beta and
expected return,
Proving no
explanation of
implications of
the ratios and
calculations;
Single year

analysis.
Calculations are
limitedly
demonstrated;
Financial ratios,
beta and expected
return are
provided but not
sufficiently;
Providing limited
analysis of the
ratios;
Inconsistent time
period of analysis.
Adequate
demonstration of
calculations;
Ratios, beta,

expected returns
are derived with
relevant
implications and
explanation;
Justification and
assumptions are
clear;
Consistent 2 year
analysis.
Calculation and
presentation are
demonstrated
clearly;
Ratios, beta,
expected returns
are derived and
justified with

exemplary analysis
that based on
current issues and
key factors;
Implications and
explanation are
7
provided
convincingly
Consistent 2 year
analysis and
properly justified
for inclusions or
exclusions.
3 Providing no
graphs of share

price of the
chosen company
No adequate
analysis and
comparison of
price trend
No relevant
research and
referencing
Providing graphs
of share price but
not in relevant
time frame;
Limited analysis
and comparison of
the share price
trend with All

Ordinaries Index;
Limited research
conducted,
inadequate
referencing
Providing
adequate graphs
of share price of
the chosen
company
Indicating clearly
the movements of
share price
Relevant analysis
comparison with
All Ordinaries
Index with

justification
based on reliable
data within
proper time
frame;
Adequate
research
conducted with
relevant
referencing
Providing well
established graphs
of the chosen
company’s share
price, which shows
obvious price
trends 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
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Providing no

recommendations
or inadequate
recommendations
for investment
decisions;
Addressing
limited
recommendations;
Demonstrating
limited
justification and
Presenting
adequate
recommendations
that properly
supported by

justification and
analysis;
Presenting a wide
ranges of adequate
recommendations
that exemplarily
supported by
justification and
analysis;
8
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
analysis of the
given
recommendations;
Demonstrating
limited skills of
academic writing

in terms of
structure,
presentation,
wordings and
referencing
Data and
information
derived from
financial analysis
completed are
properly used to
support the
recommendations
Demonstrating
the ability to
present the ideas

in proper
analytical and
contextual level
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.
Discussion- 1
Chapter 29: Transforming Risk Management at Akawini Copper
1. If you were conducting interviews of the Akawini
management team so that you could draw objective conclusions
for the review described in the chapter, what questions would
you ask?
· What are some of risk assessment that needs to be implement
in the Akawini copper and how will they impact change in the
organization?
· How can one relate the risk involved with the company
objectives?
· What are some of suggested improvement that needs to be
imposed in the company to minimize some of weaknesses and
change of approach in its performance?
· As an executive leader, what are some of critical assurance
that one can give to ensure that the company lies on ISO
31000:2009 and also in clause 3 of the risk management?
1. What would you expect to see in the first year risk
management transformation plan?
What would be the typical task?
The transition plan which will define the organization in matters

of transformational and transactional gaps that align and bound
with the implementation of the first phase and suggestion made
to commit some of risk assessment.
The typical task is comparison of some of risk which are
committed in the implementation phase and moved to the
transformational plan.
1. You have been asked to advise the Akawini management team
on how they should promote and monitor the transformation of
risk management in their business. What performance measures
would you recommend they use so that they can monitor
progress and performance?
The Akawini management team needs to focus on efficiency
which will monitor some of relationship between the services
offered and resources used. In this case, the company
committee is able to compare the input and output based on the
variables that are being produced. Moreover, there is need to
consider on quality which determines the customers’
expectations. Some of the quality facts ensures that services are
timely, accurate and meet the needs of the customers. This
measures will only be reviewed if we have some internal and
external reflect from the customers as per to the services
offered and risk associated with it. Lastly, there is need to
consider both the input and output incurred in some of
implementation and enhancement plan.
Discussion- 2
Chapter 28: The Reluctant General Counsel
1. What are Jason’s option? Can he accept a risk management
program that does not involve the legal department?
Jason is able to develop some preliminary list and risk
assessment in some of software development though he has not
managed to meet with the EVP. Jason makes in different
evaluations which has some significant impact with the
enterprise risk management. Lastly, Jason is able to involve
most of its officials in its ERM in order to give a consistent

decision with some of services offered. Based on Jason
involvement with the legal department he is able to accept some
of risk management program which support his board and the
top management that he lead.
1. Do you agree with George’s arguments? Are they valid
I rarely agree with George’s argument since most of his
argument address more on participation of the legal department
and this leads to formal risk discussion but when he and his
team joins their erupts some form of informal discussion. As a
result of this highest percentage of his programs are more of
risk and this may not be valid to the executive leadership.
1. How would you proceed, if you were the risk officer?
As the risk officer, I would run the business by involving all the
parties with their risk assessment and evaluation as this will
specify the potential outcome with the BSC competitors and
preliminary programs.
Discussion- 3
Chapter 27: Nerds Galore
1. This is a relatively brief case study; yet the problems faced
are quite complex. In your workshop, how did you handle
uncertainty in the information you have been given and how
does this translate into real- world workshops where not all the
answers can necessarily be given at the table?
In regard to the information given, I managed to seek possibility
based on the loss of key business features and departures of
some vital workers. Moreover, I decided to envision on the best
by overestimating some of risks/ problems with the solution
though it had some worrying outcome with some of business
scenarios. Lastly, there was the idea of reflect on the “hindsight
bias” which trace on the illusion of the past events. This
information have changed the real- world workshops in such a
case that most of those risks/ problems have been managed and
solved and this attracts most of recent customers as they are the
first priority.

1. What were some of the risk sources that emerged repeatedly
in evaluating the risk? How is this helpful?
Increased loss of staff who had the key internal knowledge and
steady decline of customer satisfaction were some of uncertain
predicaments which erupt in NG Company. It ensures that some
of problems/risk are dealt with accordingly and with a close
follow –up and still customers are satisfied with their internal
turnover with respect to services offered.
1. How would this risk assessment aid in the decision on
whether or not to proceed with the new HR strategy?
It will help HR management to point out some of repetitive
problems and be in a position of retaining their customers.
Nevertheless, it will minimize some of risk which has some
reoccurrence in terms of customer compensation and employee
satisfaction.
Discussion- 4
1. What is your assessment of the situation?
The company needs to improve some of strategic planning as it
is the best option to attract more customers. However, some of
services needs to be improved in order to increase the revenue
and this is done with respect to the existing clientele. In matters
of persuasiveness, the Bim Consultants needs to involve the key
staff officials with a motive of providing a strong market thrust
which will ensure that exact implementation in some of earnings
is well addressed and taken with consideration.
1. What advice would you provide to the board of Bim
Consultants?
It is not advisable to involve all of the workers in some of vital
meeting and which involves transaction that certain earning of
the company but just invite executive committee in some of
negotiations.
1. What pitfalls should they be concerned with?
Involving all of the members of staff in any offer that the
consultant’s beliefs can create profit in the company. Ignoring

the customers in some of decision which is based on services
offered and increment of price to some of services offered in the
firm.
Discussion -1
Week 14 Discussion
Cybersecurity is by far the most intimidating any company must
be able to address and also be able to keep up with since it is
the one topic that makes an institution as a safe as possible
since many institutions are evolving into the adaptation of
technology. As a result of this, the threats that are concerning
the adaptation of technology and networking tend to lead to the
complications in the security levels in an institution from both
internal and external fronts (Ten, Liu, & Manimaran, 2008).
Regarding the case scenario, the best means of tackling the
challenges of having employees attack the systems of an
institution from an internal point can be solved through the
implementation of the following:
i. Establishing a communication plan
By the setting up o a clear communication plan that has direct
channels that can reach out to the top level from the bottom up,
no employee will be tempted to tarnish the organization since
their complaints will have a direct channel. This will reduce the
possible mental or emotional as well as physical challenges that
employees undergo and the management levels tend not to be
aware off since the communication channels restrict direct
contacts (Ten, Manimaran, & Liu, 2010).
i. Close management of accounts and privileges
This is a tool that can be used to ensure that all the
employees with any level of clearance that can pose as a risk to
the organization can be well monitored as well as carefully
looked into. This can be initiated by installing background
hidden applications that will follow all the activities on
company computers or devices that are connected to the systems

of the organization (Ten, Liu, & Manimaran, 2008).
i. Installation of two-factor authentication authorizations
This is a form of approval that will require the
inclusion of a second authorization that will improve the level
of security in the systems from both internal and external
attacks. This is a security protocol that will limit the extent of
the capabilities that employees have when they are connected to
the networks. This improves the levels of security as well as the
ability of the institution to prevent internal sabotages (Ten, Liu,
& Manimaran, 2008).
References
Ten, C. W., Liu, C. C., & Manimaran, G. (2008). Vulnerability
assessment of cybersecurity for SCADA systems. IEEE
Transactions on Power Systems, 23(4), 1836-1846.
Ten, C. W., Manimaran, G., & Liu, C. C. (2010). Cybersecurity
for critical infrastructures: Attack and defense
modeling. IEEE Transactions on Systems, Man, and
Cybernetics-Part A: Systems and Humans, 40(4), 853-865.
Discussion -2
SCADA
Supervisory Control and Data Acquisition (SCADA)
helps to supervise management with help in computers and
technology. It is an efficient way of keeping a check on any
disasters, risks or issues. It has many applications like in-
network and mobile application system, entertainment services
and supporting infrastructures (Amoroso, 2012). The control
system uses computers and architecture sites to control military
efficiencies and security networks. The organization faces
cyber-attack and corruption of the working process by SCADA
and takes measures to resolve them but many other steps could
have been taken to prevent this attack. The activities were very

minor and more responsible and organized laws could have done
to secure the system.
Counter measures to prevent a cyber attack
The software itself had many flaws like many
organizations uses the same network to implement SCADA in
the work zone. Connected networks are the highest threat to
cyber-attacks and could have been rectified to prevent cyber
attacks from occurring. Authentication of the control system
must have been implemented to discourage such attacks in the
future (Zhou, Guo, Zhou & Wong, 2017). The measures taken
by the company for water control was very temporary and does
not give permanent security. Many other strong measures could
have been implemented like spreading security awareness
among employees, implementing robust technologies and
amending protocols to secure networks. The perimeter must be
hardened and strengthened to stop hackers and malware from
entering the site. Just preventing access would not do many
miracles, rather putting patent and copyright would prevent
further acquisition. Water supply is a critical and basic need of
people and could have been handled more carefully by the
organization. A team could have been formed with experienced
and innovative leaders to amaze the situation efficiently without
keeping any flaws. Future reference stores must have been
formed. The work could have been organized and laws and
policies must have been implemented to punish the cyber
attackers. Limitation of services must be implemented.
Cyber attack is a problem the world is facing right now
and must be handled responsibly as the organizations run by
computer resource and merely by human infrastructure.
Protective measures have to be taken to prevent hackers from
hacking. Awareness if spread, employees will not open malware
and spam emails. Technical and legal could have been taken
like implementation and passing of bills against the hacking
procedure (Maglaras, Ferrag, Derhab, Mukherjee, Janicke &
Rallis, 2019). Counter measures like implementing protection

software and software to detect malware could have been
installed. The decisions should have been taken in less time to
prevent the fire from breaking. Regular checks must be kept in
the system and SCADA to prevent any further hacking. The
assessment team must be introduced to keep a regular check on
suspicious activities. Information technology department must
be more careful and responsible for these attacks and must be
made aware of for further risk management. The critical
components of the technology must be serviced to stop any risk
from arising. Restriction of logical access could be an important
aspect of handling network related issues. Prevention of
malware and viruses can be done by implementing laws and
regulations.

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