Ask Corporate Finance Expert

A great number of individual investors are now considering investing in products available through a stock exchange. There are over 2,000 companies listed on the Australian Securities Exchange.

This assignment has THREE 3 parts, all parts are compulsory. Your task is to answer the following questions:

PART 1

1. Explain the major purposes of a stock exchange.

2. Identify and explain three types of securities that can be traded by individual investors on the Australian Securities Exchange (ASX).

3. Explain how companies go about listing on the ASX.

4. Briefly explain three listing requirements that are imposed upon companies by the ASX.

5. What is the ASX profit test and asset test and why are these rules in place?

PART 2

Answer the following questions on one of the companies listed below. Your choice of company is determined by the following formula.

If your student ID number ends in a ‘1', ‘2' , ‘3' your company is Qantas Airways (Australia)

If your student ID number ends in 4' , ‘5' or a ‘6' your company is Westpac Banking Corporation (Australia)

If your student ID number ends in ‘7', ‘8', ‘9' or a ‘0' your company is Woolworths (Australia)

6. What does this company do and when did it first become listed.

7. What other companies would this firm directly compete with? Do you think your company is a market leader? Explain your answer

8. a) Outline the general trend in the company's share price over the last 6 months.

b) Outline the general trend in the S&P/ASX200 over the last 6 months.

c) Comment on the performance of this company relative to the S&P/ASX200 over the last 6 months

9. Using historical data on prices for the last 5 years from June 2007 to June 2012.

Calculate this company's expected return. Briefly explain what your result means.

10. Assess the risk that your return might not be what you expected.

PART 3

11. Explain the terms Price Earnings Ratio; Dividend Yield; Earnings Per Share.

12. Find the value of each of these indicators for your stock on 1 August 2012. What do they indicate about your stock?

13. Has this company made any announcements to the ASX in the last 6 months? If so was this announcement significant? (In your answer explain under what circumstances a company is required to make an announcement to the ASX).

14. Will this company pay a dividend in the next 12 months and if so how much?

15. Would you buy shares in this company. In your answer explain what information you have considered in making this decision and what extra information would have been of assistance.

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9495847

Have any Question?


Related Questions in Corporate Finance

Business finance case study assignment -instructions - you

BUSINESS FINANCE CASE STUDY ASSIGNMENT - Instructions - You must do Questions 1-5a, 8 and 10 on a spreadsheet. Eternal Youth Ltd (EY) is a New Zealand company which produces and sells cosmetics. Its financial year is 1 J ...

Q1 delta hedgingon sept 30th 2011 exxon mobil xom stock was

Q1 (Delta Hedging) On Sept 30th, 2011, Exxon Mobil (XOM) stock was traded at $72.63 while the December XOM put option with $75 exercise price is traded at $5.00 and the December XOM call option with $70 exercise price is ...

Q1 delta hedgingon sept 30th 2011 exxon mobil xom stock was

Q1 (Delta Hedging) On Sept 30th, 2011, Exxon Mobil (XOM) stock was traded at $72.63 while the December XOM put option with $75 exercise price is traded at $5.00 and the December XOM call option with $70 exercise price is ...

Assignment -part a - saturn petcare australia and new

Assignment - Part A - Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their firs ...

Mini case assignment -problems - use internet to identify a

Mini Case Assignment - Problems - Use internet to identify a house or condo that you may be interested in investing as a rental property for 10+ years. (Suggested price range between $250k - $1 million) 1. Estimate the a ...

Descriptionstudents are required to study undertake

Description: Students are required to study, undertake research, analyse and conduct academic work within the areas of corporate finance. The assignment should examine the main issues, including underlying theories, impl ...

Corporate finance assignment - required this assessment

Corporate Finance Assignment - Required: This assessment task is a written report and analysis of the financial performance of a selected company in order to provide financial advice to a wealthy investor. It will be bas ...

Interest swap valueabc bank has agreed to receive 3-month

Interest swap value ABC bank has agreed to receive 3-month LIBOR and pay 8% per annum on a notional principal of $100 million. The swap has a remaining life of 11 months. The LIBOR spot rates for 2-month, 5-month, 8-mont ...

Graph an event study relationshipthe event in consideration

Graph an event study relationship. The event in consideration here is: "Environmental performance, being green, clean-tech, corporate sustainability, and many other "green" issues are on the forefront of the current econ ...

Question - assume that the average firm in your companys

Question - Assume that the average firm in your company's industry is expected to grow at aconstant rate of 6 percent and its dividend yield is 7 percent. Your company is about as risky as the average firm in the industr ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As