FIN 510 / FIN 205 Assessment 2
Assignment
Marks: 30 (15% weight of total assessment)
Problem 1:
Choose a publicly traded company from the Australian Securities Exchange (ASX) website.
Provide the following information of your chosen company. 02 Marks
Company Name:
Stock Ticker Symbol:
Stock Information:
Most recent price
Market capitalization
Daily volume
Number of ordinary securities published
on ASX
Most recent dividend
Annual dividend yield
P/E ratio
EPS
Company Description:
How to answer this question?
Choose a company from the link bellow. https://www.asx.com.au/asx/research/listedCompanies.do Click on the Key statistics and note down as required.
Problem 2:
Find the beta of the stock from April 2016 till March 2021 (download monthly price information) from the yahoo finance and write a summary of your analysis indicating the stock price trend during the analysis period.
07 Marks
How to answer this question?
Steps in downloading stock price from https://au.finance.yahoo.com/
a. Type the name of your chosen company in yahoo finance search option
b. Click on the historical data
c. Choose time for 5 years data (1 April 2016 – 30 March 2021) period.
d. Show: historical price, Frequency: Monthly
e. Download the excel spread sheet and save it.
f. Keep date and Adj closing price columns and delete open, high, low and volume columns.
g. Now go back to yahoo finance home page and click on the ASX 200 stock index. Then click on the historical data and collect data for the same for the stated periods (weekly data) for the ASX 200 index.
h. Download the ASX 200 index data and only choose Adj closing price. Copy Adj closing price and past it next to your chosen company’s stock price. Follow the above two videos to collect data for your chosen company and ASX 200 index. https://www.youtube.com/watch?v=7LiK-qbmPsw
i. Then compute returns (returnt = (Pt – Pt-1)/Pt-1 ) of the chosen stock and ASX 200 index for the stated (weekly data) period.
Variables Your chosen company
(1 April 2016 – 30 March
2021) ASX 200
(1 April 2016 – 30 March 2021)
Return (most
recent period)
Mean (average
returns)
Variance
Standard Deviation
*Slope (Beta)
*Slope = covariance (returns of X company, returns of ASX 200)/ variance of ASX returns. You can either type (=slope (return of X, Returns of ASX 200) in excel or the above slope formula.
J. Now calculate beta by regressing the share's returns on the returns to the index chosen. Report both excel results and regression result with beta. Your calculated slope and beta will be exactly the same. Copy the regression table from the excel sheet and paste it on your assignment word file. For regression analysis, you have to use the analysis tool pack available in excel.
Problem 3:
Now calculate the information required in problem 2 to check the impact of COVID 19 on your chosen company from 1st January 2020 to March 2021 period (download daily price
information) and discuss the changes during the COVID 19 period only. 07 Marks
How to answer this question?
Download the daily price data of your chosen company from the yahoo finance website and repeat the procedure stated in problem 2 with the ASX 200 price for the COVID 19 period (check excel file with ASX 200 price).
Explain the possible reason for changes in stock price of your chosen company during COVID 19 period (1st January 2020 to March 2021).
You may compare the beta calculated in problem 2 with the beta calculated in problem 3 (COVID 19 period beta).
You may also include the impact of COVID 19 (as a market risk) on company specific factors (sales, export, production, supply chain etc) and their related impact on stock price performance. Try to enrich your answer with related issues as you think has had an impact on stock.
Problem 4:
Collect the 5 years period dividend information of the company from the yahoo finance website.
Calculate dividends growth rate and the return on share investment. 04 Marks
Dividends Growth Rates {(D1 -
D0)/D0} Annual rate of return using Gordon Model (P0 = D1/r-g)
2020 (D4)
2019 (D3)
2018 (D2)
2017 (D1)
2016 (D0
For stock price information (P0) check yahoo finance. You can do this section along with question number 2.
Problem 5:
Now visualize the analyses you did in graphs and charts by using Microsoft power BI software. 08 Marks
a) For Problem 1 - Visualize your company’s stock information
b) For Problem 2- Show last 5 years price trend and regression analysis
c) For Problem 3- Show Last 1 year price trend and regression analysis
d) For Problem 4- Draw graphs to represent dividend’s growth rate and annual rate of return.
How to answer this problem?
To solve the problems, follow the solution video uploaded in Learnline.
Problem 6:
Now prepare the presentation of your assignment with a power point file with audio
(maximum 5 minutes). 02 marks
Explain the result of problem 2 and 3 on power point slides (2 to 3 slides) and record your audio on power point. Now upload the recorded power point file to student media upload on Learnline.
Check the link for adding audio on your power point slides https://support.microsoft.com/en-us/office/video-add-and-record-audio-eeac17575f20-4379-95f2-0d0cd151d5b8
You are required to submit assignment files (word file, excel file, power BI file and PowerPoint with audio) by the submission deadline of 5.00 PM Darwin time on Friday day, 7th May, 2021.
Strategies for finishing the assignment on time:
1. Choose a company following the selection criteria. Once you have selected a company, declare the company name in the FIN 510/FIN 205 forum with your student ID (in the forum write student ID and name of your selected company) so that other students do not select the same company. Before choosing a company check the FIN 510/ FIN 205 assignment forum whether your chosen company has been selected by others.
2. Read about the company from ASX and company’s website.
3. Complete assignment questions step by step and check if you are in right direction according to the requirements of the questions. Make sure you practice excel while doing this assignment.
4. Finalize word file (12 font, calibri (body), line spacing single).
5. Finalize excel file with regression results. Upload both the excel file and the assignment file via assignment submission point. (Please keep a copy of yours excel sheet and Power BI output as a future reference. I might ask you to send me a copy of yours excel and Power BI files).
6. Proof-read your assignment prior to the submission.
7. Submit the assignment prior to the submission deadline. Make sure you have submitted the assignment on time, as there will be penalty for late submission which is 10% deduction of marks for each day.
8. Listen to the recorded session on how to prepare your assignment.