1 financial management fin5fma group assignment determination 4382292

1 FINANCIAL MANAGEMENT (FIN5FMA) GROUP ASSIGNMENT DETERMINATION OF THE FINANCIAL MANAGEMENT POLICIES AND DECISION-MAKING This group assignment requires the evaluation and analysis of the 2018 Annual Report documentation, and other potentially relevant information, for one of the ASX listed companies to ascertain the nature of their overall financial management policy choice and decision-making, and to identify the potential determinants of this financial management policy structure and its impact on firm valuation. The focus of this task should be on using relevant information provided in the most recent Annual Report and the Shareholder Review documents to identify, illustrate and explain the financial management policies adopted by the company, and to demonstrate the association between the various policies adopted by the company and how they integrate to determine the accounting and share performance outcomes. Overall, the idea behind this research project is to integrate a number of topics across the subject syllabus, as a means for students to understand the dynamic relationship between the various financial management decisions that firms have to make. It also represents an example of the sort of company analysis and assessment that a research analyst or consultant might undertake when they are evaluating a firm or conducting a strategic planning exercise Requirements: Each group should choose one of the ASX200 listed company from https://www.asx200list.com/. The required tasks associated with this research project are, based on using the information within the annual report documentation and any other documentation or sources of information considered to be relevant, to identify and outline the following aspects of a chosen company’s financial management policy. 1) Annual report documents provide a range of information outlining and summarizing the recent financial and operating performance of companies, with tables of historical performance (which are normally located towards the end of annual report documents) being very informative in this regard. You can also use https://au.finance.yahoo.com/ and go to the library (Morningstar) DatAnalysis Premium and find the key information for the table below on the financial and structural information for the company for their recent Dec 30th year-ends (2018). The following table lists some of the most important figures that you may use for completing the following tasks. 2014 2015 2016 2017 2018 Issued share capital (no.) Market capitalization Share price ($mil) Price/earning ratio (times) Earnings per share ($mil) Dividends per share ($mil) 2 Dividend payout ratio (%) Return on equity (%) Total revenue (($mil) Profit before interest and tax ($mil) Profit before tax ($mil) Net profit after tax ($mil) Income tax expense ($mil) Current assets ($mil) Total assets ($mil) Current liabilities ($mil) Long-term debt ($mil) Total liabilities ($mil) Shareholders’ equity ($mil) Long-term debt to total assets (%) Total liabilities to shareholders’ equity (%) 2) Determination of the cost of the various sources of costly (interest-bearing) financing used by the firm and, based on this information, the company’s overall weighted average cost of capital (WACC). 3) The nature of the firm’s earnings distribution and dividend payout policies. This should include discussion of the type of dividend policy employed, whether the firm has a target dividend policy or payout ratio, changes in dividend payout amounts or patterns, and the consideration of taxation, dividend imputation and franking credit issues and wider elements associated with the firm’s overall earnings management and distribution practices. 4) The nature of the firm’s capital structure determination policy, including identification of specific policy adoption or usage if relevant, whether the firm appears to have target or optimal capital structure ratios, and the determinants of the firm’s capital structure choice. The due date for submission of this research project is no later than Monday 21, Oct 2019 at 6.00pm. The research project will represent 10% of the final assessment for this subject and is to be submitted through LMS online Turnitin assignment box. The research project can be completed in a group comprising three (3) to four (4) people. The research project should be a maximum of 1,500 words, including any calculations, tables and other exhibits. The completed report should be prepared in a professional manner, and include detailed presentation of information and arguments used to justify policy and decision-making conclusions drawn. Relevant calculations employed should be fully explained and be understandable and interpretable by the reader, and any important assumptions made should be clearly stated. Any resources used, besides the company’s Annual Report documents, should be appropriately identified and referenced. A signed and dated Statement of Authorship form should be submitted online with the research project, and students are advised to make themselves aware of the University policies in relation to plagiarism.


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