Background: financial literacy helps you to become a better manager.

Background:

Don't use plagiarized sources. Get Your Custom Essay on
Background: financial literacy helps you to become a better manager.
Just from $13/Page
Order Essay

Financial literacy helps you to become a better manager. Understanding the financial side of the business will make you more effective on the job and will make your work life more meaningful. The two core activities of financial management are to manage profitability and manage liquidity. If either of these two activities is neglected it can lead to the demise of an organisation. Hence, these two aspects guide the decision making for any manager. Issuing bonds (debt) and/or issuing stocks (shares), enables the corporation to manage the money it needs to finance the assets of the business. Therefore, being able to value these financial securities is also an important skill to have.

Requirement:

Your task is to analyse the historical (for the last five years) performance of a listed company and present your findings in the form of a report, which will cover both qualitative and quantitative performance elements in a logical cohesive format.

Please note: If you are working for a company listed on the stock exchange, use this opportunity to complete the exercise on that company. Otherwise, feel free to value a competitor or a company that interests you. However, note that the company you select must be listed on a stock exchange and have a history of paying dividends.

The qualitative component of your discussion should include brief background information on the company including how they are placed within the industry, and a brief overview of the recent stock price movements for the company. The quantitative component should include an initial analysis of trends in the major items contained in the profit and loss statements and balance sheets, followed by an analysis of the following important ratios measuring liquidity, profitability, capital structure and market-value aspects of the company performance:

  • Liquidity: Current ratio
  • Profitability: Net profit margin ratio and Return on total assets
  • Capital structure: Debt ratio and Interest cover ratio
  • Market value: Price-earning (P/E) ratio.

Your analysis should highlight the important changes within these ratios over this period and identify the reasons for significant changes. Since these financial ratios are limited to the particular organisation, it is also useful to compare these ratios to other businesses in the same industry or by using industry averages.

You are also required to calculate the value of a stock (share) of the listed company selected above, using the Constant Dividend Growth Rate model. Go to your relevant stock exchange site (e.g. www.asx.com.au if using an Australian listed company) and find the latest share price. Assume the company chosen above has a 4% dividend growth rate and the required 

rate of return is 9%. Compare that stock value with the current stock market price. Are there any differences? You are required to explain these differences.

Analyse and interpret the ratios and the other data with reference to the theoretical concepts introduced in this subject to evaluate the company’s operations and performance. Discuss limitations if any. Taking into account the quantitative and qualitative analysis, you are then required to make a recommendation on whether to:

  1. Invest in the company
  2. Do not invest in the company.

Please note: In order to start this assignment you will need to extract the financial statements (comprising five years information) of your chosen publicly listed company.

We recommend you familiarise yourself with the IBISWorld database available under the ‘Research’ drop-down menu in the header on the student learning portal. This tool provides the financials, financial ratios and company information plus industry averages for a broad range of companies.

Include referencing so that you clearly acknowledge your sources of information. All your references must be from credible sources such as books, peer-reviewed journals, magazines, company documents and recent articles. Students are highly encouraged to use peer-reviewed journal articles as this may contribute towards a higher grade. Your assignment mark will be adversely affected if you use poor references.

Please note: Remember to submit a hyperlink to the annual reports within the reference list in your assignment.

 

Place Order
Grab 16% Discount On This Paper
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, MyEssay.Help has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At MyEssay.help, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@myessay.help.

Try it now!

Grab 16% Discount On This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

MyEssay.help has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At MyEssay.help, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.

                                                                                     Place Order macbook tamir - mersin escort - envidatoken - bahis