Instructions: Submissions that do not meet the requirements below will lose marks:
All assignments must be typed in a minimum 11 font size into the assignment template question sheet (available on Moodle). Additional pages may be added as needed.
There is no word limit, but be guided by the number of marks allocated for each task.
Ensure the use of correct grammar and spelling.
Show all calculations.
Include a reference list.
Adhere to LTM Policies and Procedures. Check latrobemelbourne.edu.au/policiesandprocedures
Stock Allocation
Listed Company Name Stock Code Student Name Student ID Initial to confirm that you contributed a fair share to this assignment and agree with all answers provided.
Joyce Corp Ltd JYC
Kathmandu Holdings Limited KMD
Nick Scali Ltd NCK
Oroton Group Ltd ORL
Super Retail Group Ltd SUL
Vita Group Ltd VTG
Marks Allocation
Task 1 – Table 1 (30 marks)
In Table 1, enter the date and last price of each stock, then calculate the market capitalisation, Current P/E, and Current Dividend Yield for each stock based on the last price.Show the formula used and your calculation (workings) for each stock. Round your answers to two decimal places.
Formula Used JYC KMD NCK ORL SUL VTG Mark
Date of Last Price
dd/mm/yy
N/A 6
Last Price
(AUD)
N/A 6
Shares Outstanding
(M) 27.59m 201.48m 81m 40.88m 197.03m 151.35m
Market Capitalisation
(B AUD)
Type equation here.
6
Earnings Per Share (AUD)
(TTM) $0.19 $0.09 $0.21 $0.07 $0.49 $0.17
Current P/E Ratio (TTM)
Type equation here.
6
Dividend (AUD) (TTM) $0.11 $0.09 $0.15 $0.06 $0.40 $0.16
Current Dividend Yield (%)
Type equation here.
6
Task 2 – Table 2 (10 marks)
In Table 2, provide a definition explaining the information each Data Item provides you as a potential investor in the stock. [Provide a single agreed answer per team.]
Data Item Definition/Explanation Mark
Last Price
1
Bid Price
1
Ask Price
1
Shares Outstanding
1
Market Capitalisation
1
Earnings Per Share (TTM)
2
Current P/E Ratio (TTM)
1
Dividend (TTM)
1
Current Dividend Yield (%)
1
Task 3 – Compare and Contrast (10 marks)
Compare and contrast the current market value of each stock.
Using the figures in Table 1, provide observations about the value of these stocks.(i.e. cheap or expensive?)
[Provide a single agreed answer per team.]
Case Study 2
Research for Case Study 2
Prices
Go to https://au.finance.yahoo.com and obtain the closing adjusted price for each of the six stocks on the 31st December for each year from 2009 to 2015. Enter these prices in the table below.
[Enter the stock code in the “Enter Symbol” field top left of screen. Click the “Look Up” button. Click the “Historical Prices” hyperlink in left hand margin. Click on the “Monthly” radio button. Click on the “Get Prices” button. Record the December Adjusted Price for each year.] Dividends
Go to https://au.finance.yahoo.com and obtain the dividends paid by each of the six stocks for each year from 2010 to 2015. Enter these prices in the table below.
[Enter the stock code in the “Enter Symbol” field top left of screen. Click the “Look Up” button. Click the “Historical Prices” hyperlink in left hand margin. Click on the “Dividends Only” radio button. Click on the “Get Prices” button. Record the Dividends paid in each relevant year.]
Price JYC KMD NCK ORL SUL VTG
2009
2010
(Year 0)
2011
2012
2013
2014
2015
(Year 5)
Dividends JYC KMD NCK ORL SUL VTG
2010
(Year 0)
2011
2012
2013
2014
2015
(Year 5)
Task 1 – Holding Period Return (30 marks)
Write the equation for Holding Period Return then calculate the Holding Period Return for each company for each year from 2010 to 2015. Use the price and dividend information on Page 8. Round your finalanswer to two decimal places. Show your workings.
Holding Period Return formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
2011
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
2012
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
2013
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
2014
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
5
Task 2 – Expected Return (6 marks)
Write the equation for Expected Return then calculate the Expected Return for each company for each year from 2010 to 2015. Round your final answer to two decimal places. Show your workings.
Expected Return formula:
Type equation here.
Company Expected Return Mark
JYC
Type equation here.
1
KMD
Type equation here.
1
NCK
Type equation here.
1
ORL
Type equation here.
1
SUL
Type equation here.
1
VTG
Type equation here.
1
Task 3 – Risk(6 marks)
Write down the equation for Risk then estimate the risk of each company based on your historical sample of returns. Round yourfinal answer to two decimal places. Show your workings.
Risk formula:
Type equation here.
Company Risk Mark
JYC
Type equation here.
1
KMD
Type equation here.
1
NCK
Type equation here.
1
ORL
Type equation here.
1
SUL
Type equation here.
1
VTG
Type equation here.
1
Task 4 – Five year total return to shareholders(6 marks)
Calculate the five-year Total Return to Shareholders of each company over the period from 31st December 2010 (Year 0) to 31st December 2015 (Year 5), using the formula below. Round your answer to two decimal places. Show your workings.
[(Price_(Year 5)+Dividends_(Years 1-5))/Price_(Year 0) ]^(1⁄5)-1
Company Five year total return to shareholders Mark
JYC
Type equation here.
1
KMD
Type equation here.
1
NCK
Type equation here.
1
ORL
Type equation here.
1
SUL
Type equation here.
1
VTG
Type equation here.
1
Task 5 – Compare and contrast (12 marks)
Compare and contrast the risk and return of each company. [Provide a single agreed answer per team.] [12 marks]
Case Study 3
Task 1a – Annual growth in EPS(6 marks)
From the Annual Report, find the Earnings per Share (EPS) for financial year 2010 and 2015. Enter the EPS into the table below.
Financial
Year JYC KMD NCK ORL SUL VTG
2015
(year 5)
2010
(year 0)
Calculate the annual growth in Earnings per Share over the five years to 30th June 2015, using the following formula.
[EPS_(Year 5)/EPS_(Year 0) ]^(1⁄5)-1
Company Annual growth in earnings per share Mark
JYC
Type equation here.
1
KMD
Type equation here.
1
NCK
Type equation here.
1
ORL
Type equation here.
1
SUL
Type equation here.
1
VTG
Type equation here.
1
Task 1b – Calculating Ratios (Net Profit Margin)(36 marks)
Write the equation for Net Profit Margin then calculate the Net Profit Margin for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Net Profit Margin formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
Task 1b – Calculating Ratios (Asset Turnover)(36 marks)
Write the equation for Asset Turnover then calculate the Asset Turnover for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Asset Turnover formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
Task 1b – Calculating Ratios (Leverage Ratio)(36 marks)
Write the equation for Leverage Ratio then calculate the Leverage Ratio for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Leverage Ratio formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
4
Task 1b – Calculating Ratios (Net Debt to Equity Ratio)(36 marks)
Write the equation for Net Debt to Equity Ratio then calculate the Net Debt to Equity Ratio for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Net Debt to Equity Ratio formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
3
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
3
Task 1b – Calculating Ratios (Return on Equity [ROE])(36 marks)
Write the equation for Return on Equity then calculate the Return on Equity for financial years 2010 and 2015. Round your answer to two decimal places. Show your workings.
Return on Equity formula:
Type equation here.
Year JYC KMD NCK ORL SUL VTG Mark
2010
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
3
2015
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
Type equation here.
3
Task 2 – Change (loan & PPE)(12 marks)
Demonstrate and explain what would happen to the 2014/15 Return on Equity and the Net Debt to Equity Ratios if your allocated company just prior to the end of the 2015 financial year raised an additional $50 million loan from the bank, which it invested entirely in new plant and equipment. Assume that the immediate effect on sales and net profit was zero. Show your calculations of the ratios.
Company Return on Equity in 2015
(before) Return on Equity
(after) Mark
JYC
Type equation here.
Type equation here.
1
KMD
Type equation here.
Type equation here.
1
NCK
Type equation here.
Type equation here.
1
ORL
Type equation here.
Type equation here.
1
SUL
Type equation here.
Type equation here.
1
VTG
Type equation here.
Type equation here.
1
Task 2 – Change (loan & PPE - continued)(12 marks)
Company Net Debt to Equity in 2015
(before) Net Debt to Equity
(after) Mark
JYC
Type equation here.
Type equation here.
1
KMD
Type equation here.
Type equation here.
1
NCK
Type equation here.
Type equation here.
1
ORL
Type equation here.
Type equation here.
1
SUL
Type equation here.
Type equation here.
1
VTG
Type equation here.
Type equation here.
1
Task 3 – Change(new shares and PPE) (12 marks)
Demonstrate and explain what would happen to the 2014/15 Return on Equity and the Net Debt to Equity Ratios if your allocated company just prior to the end of the 2015 financial year instead of raising the additional loan raised an additional $50 million through the sale of new shares to the public, which it used to pay for the new plant and equipment. Assume that the immediate effect on sales and net profit was zero.
Company Return on Equity in 2015
(before) Return on Equity
(after) Mark
JYC
Type equation here.
Type equation here.
1
KMD
Type equation here.
Type equation here.
1
NCK
Type equation here.
Type equation here.
1
ORL
Type equation here.
Type equation here.
1
SUL
Type equation here.
Type equation here.
1
VTG
Type equation here.
Type equation here.
1
Task 3 – Change(new shares and PPE - continued) (12 marks)
Company Net Debt to Equity in 2015
(before) Net Debt to Equity
(after) Mark
JYC
Type equation here.
Type equation here.
1
KMD
Type equation here.
Type equation here.
1
NCK
Type equation here.
Type equation here.
1
ORL
Type equation here.
Type equation here.
1
SUL
Type equation here.
Type equation here.
1
VTG
Type equation here.
Type equation here.
1
Task 4 – Compare and contrast financial performance (12 marks)
Using the ratios calculated in Task 1 of this case study, compare and contrast the financial performance of the companies over the past 5 years. [Provide a single agreed answer per team.]
Task 5 – Explain differences (12 marks)
Use your analysis of the financial performance of the companies over the past 5 years to explain any differences in the Total Return to Shareholder between the companies over the past 5 years, which you have calculated in Task 4 of Case Study 2. [Provide a single agreed answer per team.]
Reference List