UBFF 2083 FINANCIAL MANAGEMENT (MAY 2014)

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE
ACADEMIC YEAR 2013/ 2014
BACHELOR OF FINANCE (HONS)
YEAR 2
GROUP ASSIGNMENT (QUESTION)

Objective:
(a)

Study on the companys background, management structure and industry background.

(b)

Review the contents of Income Statement and Balance Sheet.

(c)

Calculate and apply ratios to analyze a firms performance based on the perspectives
from creditors, investors and management.

(d)

Comparing between two companies for each perspective and makes final decision which
are worth to invest.

Instructions:

Form a group of 6 members and register your group with your respective tutor
representative by Week 3.

The assignment has to be passed up BEFORE 4.00PM on 18TH JULY, 2014 (FRIDAY of
Week 8) in hard copy form and soft copy.

Standard format: Times New Roman, font size of 12, 1.5 spacing, one-inch margins,
simple staple binding, bibliography in APA citation as per attached, and use mark sheet
as provided below as the cover page of the assignment for submission.

Choose TWO (2) companies in the same sector/ industries which listed on the Bursa
Malaysia and extract its annual report for 3 financial years ending (2011 2013). The
selected companies should not be the same as another group. (First come first served
basis applied).

Hand-written assignment will not be accepted.

UBFF 2083 FINANCIAL MANAGEMENT (MAY 2014)

Topic: Analyze and Produce Report on Financial Firms Evaluation and Performance

Instructions:
a)

Write a review of the background of the TWO (2) companies that you have selected
based on their annual reports or other information found on the companies websites.

b)

Use the 5 main financial ratios (liquidity, efficiency, leverage, profitability, and market)
to analyze the TWO (2) companies financial performance, as an individual entity for
each perspective from 2011 to 2013.
i.
ii.
iii.

Creditors perspective: Liquidity and leverage

Investors perspective: Profitability and market
Managements perspective: Efficiency

c)

Compare and contrast the TWO (2) companies financial performance from 20112013.

d)

Give your recommendations as to how the overall performance of the TWO (2)
companies could be improved. Alternatively, if you feel that the TWO (2) companies are
already doing very well, state the lessons that can be learned from those companies.

e)

Provide overall conclusion with justification on the company which is worth to invest.

f)

Students can choose companies from the below; No two group are allowed to choose
the same companies, and you are required to get approval from your lecturer once you
have selected the companies.

g)

Sector consumer products

Sector plantation
Sector industrial products
Sector technology
Sector food & beverages
Sector tourism
Sector construction
Sector properties
Sector oil & gas

You are required to calculate the CAPM, required rate of return, using the following
information: - rf-risk free rate is 3%, b-beta; choose between 1.1-1.3 for company that
are more volatile to the market and choose between 0.8-0.9 for company that are less
volatile to the market. For rm-market return is 10%. Conduct stock valuation to
estimate intrinsic value of selected stocks. Show your working to support your answer.
Download the historical stock price on monthly basis for 3 years till 31st May 2014 (from
http://finance.yahoo.com/.) to calculate the expected return of the stock. Determine
whether the chosen stock is undervalued or overvalued, by comparing between the
required return and the expected return.

UBFF 2083 FINANCIAL MANAGEMENT (MAY 2014)

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE
ACADEMIC YEAR 2013/ 2014
BACHELOR OF FINANCE (HONS)
YEAR 2
GROUP ASSIGNMENT (Marking Scheme)
Topic: Analyze and Produce Report on Financial Firms Evaluation and Performance

TUTORIAL GROUP: __________

TUTOR: ________

SELECTED INDUSTRY:
SELECTED COMPANIES:
1) Company A
2) Company B
Student Name

Student ID

1)
2)
3)
4)
5)
6)
No.
(a)
(b)
(c)
(d)
(d)
(e)
(f)

Assessment

Marks Allocation

Background of the company

Calculate and interpret Financial Analysis
Ratios
Comment and compare on the TWO (2)
companies financial performance
Stock Valuation
Recommendations and/or lessons learned
Overall conclusion with justification on the
company which is worth to invest
Quality of the written assignment

Marks Obtained

10
25
25
10
15
10
Total

5
100

Overall comment:
____________________________________________________________________________
Assessed by: __________________

Date: _______

UBFF 2083 FINANCIAL MANAGEMENT (MAY 2014)

Suggested format of the assignment

Mark Sheet (Cover page)

Introduction
Give a background of the subject matter you are discussing such as what you intend to
achieve in the Main Body of Contents. Give a concise justification of the selected
industry and companies. (Max: 2 pages)
Main Body of Contents
Do use appropriate sub-headings to breakdown your content into appropriate sections
and the graph/chart/table in presenting your analysis works.
1. Ratio Analysis on individual companies
2. Compare and contracts between two companies.
3. Stock Valuation
Conclusion
Based on the analysis, and recommendation in the previous part, conclude the
assignment by giving your recommendation which selected companies are a worthwhile
investment. (Max: 2 pages)