FIN 510 / FIN 205 Assignment

FIN 510 / FIN 205

Assignment

Marks: 30 (15% weight of total assessment)

Problem 1: Choose a publicly traded company from the Australian Securities Exchange (ASX). Provide the following information of your chosen company and what is the product or service the company produce? 02 Marks

Company Name:

Stock Ticker Symbol:

Stock Information:

Most recent price

Market capitalization

Daily volume

Number of ordinary securities published on ASX

Most recent dividend

Annual dividend yield

P/E ratio

EPS

Company Description:

How to answer this question? Choose a company from the link bellow. https://www.asx.com.au/asx/research/listedCompanies.do Click on the Key statistics and note down as required in question 1.

Problem 2:

Find the beta of the stock from January 2017 till March 2022 (download weekly price information) from the yahoo finance and write a summary of your analysis indicating the stock price trend during the analysis period.

08 Marks

How to answer this question?

Steps in downloading stock price from https://au.finance.yahoo.com/

a. Type the name of your chosen company in yahoo finance search option

b. Click on the historical data

c. Choose time for 5 years data (for example 1 January 2017 – 31 March 2022) period.

d. Show: historical price, Frequency: Weekly

e. Download the excel spread sheet and save it.

f. Keep date and Adj closing price columns and delete open, high, low and volume

columns.

g. Now go back to yahoo finance home page and click on the ASX 200 stock index. Then

click on the historical data and collect data for the same for the stated periods (weekly

data) for the ASX 200 index.

h. Download the ASX 200 index data and only choose Adj closing price. Copy Adj closing

price and past it next to your chosen company’s stock price. Follow the above two

videos to collect data for your chosen company and ASX 200 index.

https://www.youtube.com/watch?v=Byx4hQ0IRrM&t=276s i. Now arrange the data in 3 columns in you excel file. Column 1 (date), column 2 (your

chosen company’s adjusted closing price, ASX200 adjusted closing price. Now select the data in 3 columns and click data icon in you excel sheet and then click Z to A arrow sign to arrange data from 2022 to 2017 period.

j. Now compute returns (returnt = (Pt – Pt-1)/Pt-1 ) of the chosen stock and ASX 200

index for the stated (weekly data) period.

Variables Your chosen company

(1 January 2017 – 31 March 2022)

ASX 200 (1 January 2017 – 31 March 2022)

Return (most recent period)

Mean (average returns)

Variance

Standard Deviation

*Slope (Beta)

*Slope = covariance (returns of X company, returns of ASX 200)/ variance of ASX returns. You can either type (=slope (return of X, Returns of ASX 200) in excel or the above slope formula.

J. Now calculate beta by regressing the share’s returns on the returns to the index chosen. Report both excel results and regression result with beta. Your calculated slope and beta will be exactly the same. Copy the regression table from the excel sheet and paste it on your assignment word file. For regression analysis, you have to use the analysis tool pack available in excel.

Problem 3:

Now calculate the information required in Problem 2 to check the impact of COVID 19 on your chosen company from 1st March 2020 to August 2021 period and discuss the changes during the COVID 19 period only. 04 Marks

How to answer this question?

Repeat the procedure of problem 2 for the COVID 19 period (from 1st March 2020 to March 2022 period) only and then explain your analysis. You may compare the beta calculated in problem 3 with the beta of COVID 19 period. You may also include the company specific factors

(sales, export, production, supply chain etc) that has been impacted by COVID 19 and their related impact on stock price performance. Try to enrich your answer with related factors you think has had an impact on stock.

Problem 4:

Collect the 5 years period dividends information of the company from the yahoo finance website.

Calculate dividends growth rate and the return on share investment. 05 Marks

Dividends Growth Rates {(D1 – D0)/D0} Annual rate of return using Gordon Model (P0 = D1/r-g)

2022 (D6)

2021 (D5)

2020 (D4)

2019 (D3)

2018 (D2)

2017 (D1)

2016 (D0)

For stock price information (P0) check yahoo finance. You can do this section along with

question number 2

Problem 5:

Now visualize the analyses you did in solving problem 2, 3 and 4 in graphs and charts by using Microsoft power BI software. 9 Marks

How to solve:

To solve the problems, follow the solution video uploaded in Learnline.

Problem 6:

Now prepare the presentation of your assignment with a power point file with audio (maximum 5 minutes). 02 marks

Explain the result of problem 4 and 5 on power point slides (2 to 3 slides) and record your audio on power point. Now upload the recorded power point file to student media upload on Learnline.

Check the link for adding audio on your power point slides

https://support.microsoft.com/en-us/office/video-add-and-record-audio-eeac1757-5f20-4379- 95f2-0d0cd151d5b8

You are required to submit assignment files (word file, excel file, power BI file and PowerPoint with audit) by the submission deadline of 20 May, Friday, 5.00 pm (Darwin time).

Strategies for finishing the assignment on time:

1. Choose a company following the selection criteria. Once you have selected a

company, declare the company name in the FIN 510/FIN 205 forum with your student ID (in the forum write student ID and name of your selected company) so that other students do not select the same company. Before choosing a company check the FIN 510/ FIN 205 assignment forum whether your chosen company has been selected by others.

2. Read about the company from ASX and company’s website. 3. Complete assignment questions step by step and check if you are in right direction

according the requirements of the questions. Make sure you practice excel while doing this assignment.

4. Finalize word file (12 font, calibri (body), line spacing single). 5. Finalize excel file with regression results. Upload both the excel file and the

assignment file via assignment submission point. (Please keep a copy of yours excel sheet as a future reference. I might ask you to send me a copy of yours excel file).

6. Proof-read your assignment prior to the submission. 7. Submit the assignment prior to the submission deadline. Make sure you have

submitted the assignment on time, as there will be penalty for late submission. 8. Attend or listen to the recorded session on how to prepare your assignment.