ACCT1063 Management Accounting And Business Assignment – Australia.

Formatting: The report should be written in Times New Roman 12-point font single spacing minimum 3 cm margin on left and right side of paper.
1.Title
2.Executive Summary
3.Table of Content
4.Introduction (overview)
5.Data Analysis based on:
6.Capital structure policies
7.Bond Valuation and Share Valuation and dividend policies  
8.Cost of capital
9.Conclusion and Recommendations
10.References
11.Appendices
ACCT1063 Management Accounting And Business Assignment – Australia.

INSTRUCTIONS TO INDIVIDUAL ASSESSMENT
1.The business report is an open-book assessment.
2.Complete the assessment before the due date and upload the report via Turnitin
3.Please prepare your assessment as a business report and attached 5 minutes video presentation

Length:
The total word limit is 3000 words:
Business Report: 2000 words +/- 10% (22.5 marks)
5 minutes video presentation (7.5 marks)
The word count does not include the title table of content list of references and appendices.

Business Report detail requirements:
Students are required select one of following 3 companies and download company annual reports 2017 to 2021 (five-year annual reports)

In addition to company Annual reports you can access to yahoo finance for specific data such as market price of a share market capitalisation and company beta etc. for example:

Note
Marks are allocated out of 100 for the business report and it will be proportional to 22.5 marks for the course.

1.Title: Provide a title of your report followed by a Lego that represents your company.

2.Executive Summary:
An executive summary provides a condensed version of the main report in three paragraphs that discuss (1) the aim of the report methods used to analyse financial data e.g. trend analysis based on historical financial ratios (2) findings conclusion and recommendation; and (3) limitation of the report.

3.Table of Content

4.Brief company and industry overview:
What is the selected company and what industry that the selected company operates in Hint: Technology Facility any other Services or Manufacturing etc. discuss the competitive industry landscape and provide an industry outlook? What are the essential products or service in this industry? Briefly list and describe the most important ones. Who are the major operators major companies in this industry?
Who are the primary buyers or customers Hint: major markets) of the products of this industry?

5.Data Analysis

5.1 Analysis of company’s capital structure policies

Describe the capital structure considering the following criteria:

5.1.1 Why is capital structure analysis useful for a company? discuss optimal capital structure firm value why higher EPS does not always support for the optimal capital structure).
5.1.2 What does the capital structure theory say about a company’s capital structure?
5.1.3 Assess firms capital i.e. capital structure of the selected company over five-year period i. e. 2017 –2021 using the data collected from Dat Analysis Premium database. In your analysis

a. Use debt ratios debt equity ratios and Times interest earned ratios to assess the company’s current performance against its past performance i. e trend analysis and its current performance against its competitors i.e. industry analysis. Please use 5–year financial data from 2017 to 2021 please conduct performance analysis over the 2017–2021 period.
b.Based on the findings found in a what is your opinion about the company’s capital structure specifically degree of financial leverage. (HINT: Make an assessment about its firm capital structure based on these solvency ratios).

5.2 Analysis of company’s long-term debts(bonds), share valuation and dividend policies
5.2.1 Explain the relationships between bond prices and interest rates and explain why it is important for company managers as well as investors to understand the relationship.
5.2.2 What long term borrowings are available to the company e.g. bonds long term loans? Provide information on terms (e.g. coupon rates maturity period for bonds, interest rates and term period for loans.
5.2.3 Describe the types of shares held by the company. What can you say about the history of company share issues retained earnings and payment of dividends? Are they following any specific policies for these? please refer notes to the accounts in the annual reports).

5.3 Analysis of company’s cost of capital
5.3.1 (1) What is the main benefit of debt financing? How does it affect the firm’s cost of capital? (2) How do the cost of debt, the cost of equity and the weighted average cost of capital behave as the firm’s financial leverage increases from zero?
5.3.2 Discuss the importance of the knowledge of the cost of capital the selected company.
5.3.3 Calculate company cost of capital for 2017, 2018, 2019, 2020 and 2021 financial years. Compare with the required rate of return and assess the actual performance.

6.Findings Conclusion Recommendation and recommendations and Limitations of the report