You are on page 1of 2

Part 4 – Response Instructions

The answer to Part 4 is to be in the form of a one page written response –
type font 11 point, single spaced, with standard borders.

Written Response to the following statement:
A current shareholder is contemplating whether or not to continue
investing in the company. The shareholder has asked you to provide a one
page written response on the profitability, liquidity, asset efficiency and
gearing of the company. The shareholder is also interested in knowing
what other information he/she may consider.
Submission Requirements:
The one page written response will consist of:
1. Introduction: purpose, scope/context, main data sources,
assumptions and limitations, plan/layout of response (concise and
2. Body: This section will provide a brief evaluation of the profitability,
liquidity, asset efficiency and gearing of the company. Reflect on the
group discussions to help yourself in your analysis. Due to the length
of the response, students will be required to summarise and respond
on the overall evaluation of the profitability, liquidity, asset efficiency,
and gearing of the company and not the individual ratio outcomes.
3. Conclusion: Draw together for the reader the main findings and
what these findings mean in relation to the analysis discussed in the
body of the response. The recommendation stated in the next section
will logically flow from these conclusions. The conclusions should be
firmly and briefly stated. Do not introduce new information.
4. Recommendation: Based on the ratio analysis and findings
discussed in the body of the response, outline whether the
shareholder should continue his/her investment in the company and
outline any other information that may be useful to help him or her
with his or her decision making.
The reference list and appendices do not form part of the written
response. There is no page restriction on the length of appendices.
Your appendices should include the following:

  Ratio results and calculations and comments Horizontal & vertical analysis of the income statement and balance  sheet Any other information you think is relevant and a brief explanation as to why it is relevant. as they are relevant to the submission requirements and marking of this piece of assessment. The response should be appropriately referenced (using APA style) and a reference list/bibliography should be provided. Students should refer to the marking rubrics on pages 16 and 17 of the Subject Guide. .