Purpose: To allow students to apply the skills and knowledge acquired in the subject, and apply them as they would be applied in a modern accountancy or financial planning practice when giving investment advice to clients. Topic: "BHP SHARE VALUATION AND ANALYSIS." You are required to select a stock listed on the Australian Securities Exchange (ASX) which is included in the top 200 Australian stocks (by market capitalization) and advise if it is over, under or correctly valued. 2500 (+ 10%) word response in short report format Students need to address the following components and present their responses in a short report. Component 1 Analysis. Discussion and understanding of the market-wide (systematic) influences affecting the firm and its shares and their performance (e.g., the economy, government policies, the competitive environment for the industry). Discussion and understanding of the firm being analysed – this will include a descriptive analysis and the application of valuation models, such as the NTA backing, FCF, dividend discount model, earnings capitalisation model and/or CAPM. There may be others. Calculation of theoretical share values for the selected company under each valuation model identified. Component 2 Research. Extent undertaken and understanding displayed. References and referencing. Component 3 Recommendations and Conclusions. Separate sections required for each. Component 4 Presentation. Clear and concise expression, presentation, grammar, spelling and the use of graphs, charts, tables and sources You should follow the following typing conventions: • Times New Roman font (at minimum, 12 pitch) • A4 paper - 1.5 line spacing; and • Top, bottom, left and right margins to be at least 2.5 cms from the edge of the page. Presentation: 1. Report format – 2500 words (+ 10%). Count excludes the cover sheet, contents page, references, appendices and illustrations (e.g. diagrams, graphs and tables). Please stay within the assigned word limits, and indicate the word count on the cover page of the assignment. Assignments shorter than the minimum word count will be awarded a fail grade. 2. Special consideration would be given to students who demonstrate an in-depth analysis of the requirements. 3. Students who simply regurgitate their answers from the textbook or lecture notes may risk failing the assignment. 5. Your assignments should be typed double-spaced, using Times New Roman font size of either 10 point or 12 point. 6. Every page should be clearly numbered. 7. Your assignments should include the following parts: (a) Assignment title, word count. (c) Contents page. (d) Body (main contents). (e) Appendices (if any). (f) References. Before handing in your assignments: (a) Ensure you have referenced and cited all ideas, words or other intellectual property from other sources used in the completion of your assignment. (b) Develop a proper reference list, which includes acknowledgement of all sources used to complete your assignment. References must use the Harvard Style. Research Requirements – students are expected to support their analysis and recommendations with at least six suitable references, in addition to the textbook. A MINIMUM of another text and 1 academic journal article is compulsory. Other appropriate industry-valid sources should also be used. Marking Guide: Analysis 15% Research – extent and application 6% Recommendations/conclusions 4% Presentation 5% TOTAL 30%. The total mark will be presented as a mark out of 30%.