Topic - Ramsay health care
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.
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.
Obtain a copy of the last two financial years (2015-2016 and 2016-2017) 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.). Your selected company will be evaluated based on the five aspects to determine whether it is fundamentally financial healthy. The five (5) aspects include: liquidity, financial leverage, asset utilization, profitability and market value
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.
2. Calculation and analysis of performance 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 table. Provide analysis and justify your opinions using the data:
- Short term solvency (Liquidity ratios)
- Long term solvency (Financial Leverage ratios)
- Asset utilization (efficiency or turnover ratios)
- Profitability ratios
- Market value ratios
3. Graphs and comparison of share price movements Using the information from the ASX website 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?
4. Share valuation You are also required to calculate the value of selected company's stock above, using the Constant Dividend Growth Rate model. Go to www.asx.com.au and find the latest share price. Assume the company chosen above has a 4% dividend growth rate and the required rate of return is 9%. Compare the stock value you found using the model with the current stock market price. Are there any differences? Explain these differences.
5. 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)
Attachment:- Group Assignment.rar