2.1 Fact finding of the trading on ASX Assuming your group is working for an institutional investor that is considering to trade actively on ASX in the near future. Go to the website of Australian Stock Exchange (ASX), do a fact finding to answer the following questions: (1) Identify at least 5 types of information the public companies provide on the area of Previous Trading Day Announcement. (2) How are the dividend released by the public companies listed on ASX. Briefly explain the concepts of ex-dividend date, record date, date payable, dividend franking and type of dividends by the companies listed on ASX. (3) Name 7 types of trading reports listed in ASX 24 Reports. Briefly describe the content of each report. (4) How many types of calculators available on ASX website for the usage of investors and practitioners? Name them and explain the usage of each calculator. (5) What are the questions you should ask your broker before you start trading?
2.1 Fact finding of the trading on ASX
Assuming your group is working for an institutional investor that is considering to trade
actively on ASX in the near future. Go to the website of Australian Stock Exchange (ASX), do
a fact finding to answer the following questions:
(1) Identify at least 5 types of information the public companies provide on the area of
Previous Trading Day Announcement.
(2) How are the dividend released by the public companies listed on ASX. Briefly explain
the concepts of ex-dividend date, record date, date payable, dividend franking and
type of dividends by the companies listed on ASX.
(3) Name 7 types of trading reports listed in ASX 24 Reports. Briefly describe the content
of each report.
(4) How many types of calculators available on ASX website for the usage of investors and
practitioners? Name them and explain the usage of each calculator.
(5) What are the questions you should ask your broker before you start trading?
2.2 Fact Finding of financial market regulator in Australia
Assuming after graduation you would like to apply for a position at ASIC. Go to the website
of Australian Securities and Investment Commission, do a fact finding and answer the
following questions:
(1) What are the ASIC roles?
(2) Who and what ASIC regulate?
(3) What are the powers of ASIC?
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HI5002 Finance for Business Group Assignment T2 2020
(4) If a business approaches you to ask about procedures for providing credit activities,
what kind of license you would advise them to apply for and what are the steps they
should consider to decide whether they should apply for that license?
(5) What is book up practice in Australia, briefly explain.
Part 3: Risk analysis and project evaluation
3.1 Perform a scenario analysis on the data provided
Case Study: Assume that the company, where you are working as a team in Financial
Department, is considering a potential project with a new product that is expected to sell for
an average price of $22 per unit and the company expects it can sell 650 000 unit per year at
this price for a period of 4 years. Launching this project will require purchase of a $3 500 000
equipment that has residual value in four years of $500 000 and adding $ 850 000 in working
capital which is expected to be fully retrieved at the end of the project. Other information is
available below:
Depreciation method: straight line
Variable cost per unit: $17
Cash fixed costs per year: $450 000
Discount rate: 10%
Tax Rate: 30%
Do a scenario analysis with cash flows of the assumed project to determine the sensitivity of
the project’s
each of the project’s value drivers. Please work on two scenarios corresponding to the worstand best-case outcomes for the project. You need to provide your results in (a) relevant tables:
Worst case: Unit sales decrease by 20%; price per unit decreases by 20%; variable cost per
unit increases by 20 %; cash fixed cost per year increases by $100 000
Best case: Unit sales increase by 20%; price per unit increases by 20%; variable cost per unit
decreases by 20%; cash fixed cost per year decreases by $100 000
Based on the scenario analysis outcome, draw relevant conclusion about project NPV’s
sensitivity.
3.2 Perform an NPV break-even analysis
Perform an NPV break even analysis for the case where price per unit decreases by 20 % to
identify the number of unit sales that is needed for the project to get break-even.
Trial and error method or What – If Analysis with excel spread sheet is to be used.
Conclusion
Summarize the outcomes of your group’s works (not more than 300 words)
Step by step
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