Choose any Australian or US listed firm that has 4 years of past financial reports available, is not a bank and has no preferred stock or multiple classes of stock.
Do not choose GameStop or Woolworths since these will be the examplars shown in the recorded classes.
Note that only banks tend to have preferred stock. Australian companies have only one class of common stock, but some US firms such as News Corp have multiple classes of stock and you should avoid choosing them since
it will complicate the process of finding the number of stock which is used to calculate the share price.
Try to avoid choosing the same firm as your friends. Doing so and sharing files will result in serious plagiarism problems.
Side note: If you really want to, you can pick a US firm with multiple classes of stock, just be sure to calculate the share price of the most liquid class of shares and make an adjustment to the number of shares so that your
share price is equal to the equity market cap divided by this adjusted number of shares.
Say the 1 million class A shares have 10 times the voting power and dividends as the 100 million class B most liquid shares, then each class A share should count for 10 class B shares, so the total number of shares should be 110m (=1m*10 + 100m).
You can download financial reports from the Yahoo finance website which is free and online.
Copy these financial statements into your ‘questions’ spreadsheet tab under row 115.
Re-arrange this data so that it’s in ascending date order from left to right. Try to line the dates up with the dates given at the top since this will make calculations easier to follow. But do not add, move or remove columns or rows above line 115.
You should construct pro-forma income statements and balance sheets in the ‘questions’ spreadsheet tab under line 115. This section will not be marked, but you will use this data to answer the questions.
Note that depreciation and amortisation may not be shown in the Yahoo finance data, which is a headache. You may have to look up the last year’s depreciation manually by downloading the firm’s annual report.
After this, you might try extrapolating the depreciation (and amortisation) expense into the future using, say, the ‘percent of sales’ method or ‘percent of assets’ method.
Each week during Keith’s Zoom class we’ll walk through certain technically challenging sections of how to solve the assignment, particularly those requiring advanced spreadsheet skills.
The class will be recorded and posted to online for everyone to see.
Not all questions will be discussed and answered in these classes or in the forums since we wish for you to discover (and remember!) the process yourself or with friends.
We encourage you to discuss the assignment with other students and teachers in class and in the forums. Completing the assignment is meant to be a learning process and will hopefuly promote discussion and thought.
But be very careful not to send your assignment file to any other students.
Plagiarism is looked upon as a very serious offense by the university and can result in failure of the course and a permanent record on your academic transcript.
Do not re-use assignments submitted by students in past semesters, this is plagiarism. This assignment must be your own work.
Please submit the assignment online
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
Reference for Q2c:
Fernandez, Pablo and de Apellániz, Eduardo and F. Acín, Javier, Survey: Market Risk Premium and Risk-Free Rate used for 81 countries in 2020 (March 25, 2020). Available at SSRN: https://ssrn.com/abstract=3560869