HOLMES INSTITUTE

FACULTY OF
HIGHER EDUCATION

Assessment Details and Submission Guidelines

Trimester T1 2020
Unit Code HI5002
Unit Title Finance for Business
Assessment Type Group Assignment
Assessment Title Research on Financial market and Capital Budgeting Analysis
Purpose of the Students are enrolled a group up to 4 members to study, undertake research, analyse
assessment (with and conduct academic work within the topics of financial management from week 1 to
ULO Mapping) week 9. (ULO 1, 2, 3 and 4)
Weight 40 % of the total assessments
Total Marks 40
Word limit Not more than 3,000 words
Due Date Final Submission of Group Assignment and Presentation: 11:59 pm Sunday, Week 10
Submission  All work must be submitted on Blackboard by the due date along with a completed
Guidelines assignment cover page. Make sure that your group member’s name and surname,
student ID, unit name, and code and lecture’s name are written on the cover sheet
of the submitted assignment. A table of contribution by group members into group
work is also to be provided in the cover page (please see the assignment cover page
attached).
 The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page
numbers.
 Reference sources must be cited in the text of the report, and listed appropriately
at the end in a reference list using Harvard referencing style.
 Submitted work should be your original work showing your genuine studying.
Evidence of your original work (allocation of tasks, discussion, file exchanges, drafts,
etc.) need to be presented in the records of your group work in Discussion Board,
available in Subject Tools, Black Board. Your assignment WILL NOT BE MARKED by
your lecturers if the evidence of your group work does not shown in the Discussion
Board.
 Three attempts of submission are allowed for checking similarity and final
submission. Your lecturers only mark the final submission. As a guide, a similarity
score of over 30% is considered as excessive except in the cases where the similarity
is caused by the use of template provided by the lecturers, types of assignment,
references or sources of data. Please note that it takes 48 hours for the self-check
report to be available for your viewing. Please also note that fact findings and
working at same case study project evaluation assignment like this one may yield
higher than 30% similarity. Therefore, do not panic and shower your lecturers with
emails about similarity after your submission if your work is genuine. Your lecturers
will look at details of the similarity report and ensure a proper marking without any
bias on that threshold 30%.

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 When you submit your assignment electronically, please save the file as ‘Group
Assignment- your group name.doc’. You are required to submit the assignment at
Group Assignment Final Submission, which is under Assignment and Due Dates on
Blackboard. Always keep an electronic copy until you have received the final grade
for the Unit. Please make sure that you submit the correct file in the correct format
that is readable in Black Board. ANY APPEAL RELATING TO SUBMITTING WRONG
FILES AND WRONG FORMAT AFTER THE DEADLINE WILL NOT BE CONSIDERED.

ASSIGNMENT SPECIFICATIONS
Assignment Tasks
This assignment task is a written report that include 3 parts: Part 1 is a research and fact finding on
Australian financial market. Part 2 is a fact finding of financial market regulation in Australia and Part
3 is a risk analysis and project evaluation. To complete the assignment, groups are recommended to
obtain data and information from relevant web sites, especially websites of Australia Stock Exchange:
www.asx.com.au; Australian Securities and Investment Commission: https://asic.gov.au/ and the
Australian Prudential Regulation Authority (APRA) https://www.apra.gov.au for their research and
fact finding. Using secondary data (researches done by others) for fact findings in Pat 1 and Part 2 is
NOT RECOMMENDED and will be PENALIZED. Please also note: group assignment for HI5002 is
DIFFERENT every trimester. Attempt to submit a PREVIOUS TRIMESTER ASSIGNMENT or A WRONG
ASSIGNMENT will get a ZERO (0) mark without any consideration for resubmission.

Requirements
The assignment should cover the contents described bellows.

Assignment Structure and Details of Assignment Tasks

Introduction
Briefly introduction of your group’s work: the purpose of assignment, key findings and structure of
the assignment (not more than 300 words)

Part 1. Research and fact finding of Australian financial market

1.1 Comparison of four key financial institutions: commercial banks, insurance companies,
investment banks and investment funds in Australia from the perspective of a potential
investor who would like to invest into the institutions
Criteria for comparison include: (1) classification (the group of financial institutions it belongs
to); (2) market sector of operation; (3) key business activities; and (4) main source of income.
Organize your group’s comparison in a relevant table. Your group’s research should be
supported by a fact finding of real life examples of a commercial bank, insurance company,
and investment bank and investment fund in Australia. Your group’s discussion on each
example should reflect the above mentioned criteria and the following information: (i) what
is the code of stock listed, (ii) when was the company’s stock was first listed, (iii) what is the
current market capitalization of that stock, (iv) the current total share outstanding, (v) who is
the chairman and who is the CEO of that company, (vi) a graph of five year dividend payment
for each company and (vii) next dividend date. Using ASX and ASIC websites for the fact
finding. Your group is not allowed to choose the cases I have used as examples in this
assignment instruction.

 Example: Commonwealth Bank is a commercial bank, which is categorized in the group of

Authorized Deposit-taking Institutions (ADIs) in Australia. Commonwealth Bank operates

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in banking market sector. Its key business is taking deposit from individuals as well as
businesses, and then lend those pooled savings to other individuals and businesses. Its
main source of income is the difference between the interest rates it charges the
borrowers and the interest rates it pays the depositors. The code of listed commonwealth
bank stock on Australian Stock Exchange is CBA. The stock was first listed on 12/09/1991.
The total outstanding share 1,770,239,507. As of 18 February 2020, CBA market cap is
158.37bn, Ms Catherine Livingstone is the CBA’s Chairman, Non Exec. Director and Mr
Matthew Comyn is the Managing Director, CEO, Director. The next dividend payment date
is 31 March 2020.

1.2 Analysis of three financial management questions: (i) capital budgeting, (ii) capital structure
and (ii) working capital management

Define the three financial management questions and justify your group’s analysis by
illustrating examples: Choose one or more events described by media (CNN Business,
Financial Times, Dow Jones financial news etc.) about a company who is doing one or more
activities related to the three financial management questions. Analyse that event (s)
applying the three financial management questions. Note: Each question is to be illustrated
by at least one event.

Example of an event in media that reflect one of the three financial management questions:

Commonwealth Bank’s Project Bond-i: Bonds on block chain in collaboration with World
Bank: “In August 2018 the World Bank and CommBank successfully launched Bond-i
('blockchain operated new debt instrument'). It's the world's first bond to be created,
allocated, transferred and managed through its life cycle using block chain technology”.
Source:
https://www.commbank.com.au/business/business-insights/project-bondi.html

Bond-I Project by Commonwealth Bank is an outstanding example of capital budgeting in

financial management. This is an investment decision to generate future cash flows for the
bank in providing the auxiliary financial service of issuing debt instruments. Using block-chain
technology to create, locate, transfer and manage debt instruments undoubtedly enable huge
saving of money and enhancing efficiency. However, the security risk may be a big potential
problem for this project.

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Part 2. Fact Finding of Australian financial market regulation

2.1 Fact finding of the listing on ASX
Assuming your group is working for a company that is considering to be listed on ASX in the
near future. Go to the website of Australian Stock Exchange (ASX), do a fact finding and
present an analysis of Australian Stock Exchange Listing Requirements and process. The
following questions should be addressed:
(1) What are the advantages of being a listed company on ASX?
(2) What are the problems that need to be taken in consideration for being listed
company on ASX?
(3) What are the requirements for listing on ASX?
(4) What are the steps of listing procedures on ASX?
(5) How listing fee is applied. Using ASX listing fee calculator to identify your selected
company listing fee, choosing any random number for the ranges of market cap: 10
million -50 million; 50 million-100 million; 100 million-500 million.
2.2 Fact Finding of requirements on Financial advisory service registration in Australia
Assuming after graduation you would like to work as a financial adviser. Go to the website of
Australian Securities and Investment Commission, do a fact finding and present an analysis
of financial advisor registration to identify whether you are qualified and what steps should
be taken to be a financial adviser in Australia. The following questions should be addressed:
(1) What is the ASIC’s Financial advisers register?
(2) Who should be on the Register, who are not on the Register and who updates the
register?
(3) What information should be on the Register?
(4) What are the relevant financial products for a financial advisor?
(5) What are the professional standards applied for a financial advisor.
Part 3. Risk analysis and project evaluation
Case Study: Assume that are the financial manager of a company, which is considering a
potential project with a new product that is expected to sell for an average price of $22 per
unit and the company expects it can sell 350 000 unit per year at this price for a period of 4
years. Launching this project will require purchase of a $2 000 000 equipment that has
residual value in four years of $200 000 and adding $ 600 000 in working capital which is
expected to be fully retrieved at the end of the project. Other information is available below:

Depreciation method: straight line

Variable cost per unit: $11
Cash fixed costs per year $350 000
Discount rate: 10%
Tax Rate: 30%

Do an analysis with cash flows of the project to determine the sensitivity of the project NPV
with the following changes in the value drivers and provide your results in (a) relevant
tables:
Unit sales decrease by 10%
Price per unit decreases by 10%
Variable cost per unit increases 10%
Cash fixed cost per year increases by 10%

Conclusion
Summarize the outcomes of your group’s works (not more than 300 words)
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Presentation: Your group is required to present the assignment outcomes in a video presentation.
All members need to participate in the presentation using a PowerPoint slides. The presentation is
in no more than 10 minutes. You can record each group member’s presentation and then merge
the video records in one big video for your group presentation.
The group video presentation should be uploaded to a web-based hosting platform (e.g. Youtube)
and your group is required to submit the link to the video via a separate submission link at
Blackboard.

Marking criteria
Marking criteria Weighting
1. Research on Australian financial market
1.1. Comparison of four key financial institutions 4%
1.2. Analysis of three financial management questions 4%
2. Fact Finding of Australian financial market regulation
2.1. Fact finding of the listing on ASX (1 mark each question) 5%
2.2. Fact Finding of requirements on Financial advisory service registration (1 mark each 5%
question)
3. Risk analysis and project evaluation
3.1. Perform a sensitivity analysis with data provided 10%
4. Academic writing: Presentation, structure and academic writing 2%
Total weight of written report 30%
5. Presentation:
Presentation content 7%
Presentation skill 3%
Total weight of presentation 10%
Total weight of group assignment 40%

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MARKING RUBRIC
Task Excellent Very Good Good Satisfactory Unsatisfactory
(80%-full marks (71-79% marks (61-70% marks (50-60% marks (0-49% marks
given) given) given) given) given)
1. Research on Australian financial market
1.1 Comparison Clearly identify All features of Features of four Features of four Analysis and
of four key the distinctive four key key financial key financial comparison of
financial features and financial institutions are institutions are four key
institutions differences and institutions are provided with provided with financial
alike of four key provided with adequate adequate institutions are
financial good analysis explanation and explanation and not completed
institutions, and explanation analysis analysis or sufficient
basing on given basing on the
criteria or more given criteria Comparison is Comparison is Examples are
with exceptional with good made relevantly made relevantly not provided or
good analysis and analysis but may not be provided with
explanation Four examples completed limited
Comparison is are provided information and
Comparison is provided and with adequate Four examples data
presented and organized in a information and are provided
analyzed in a, logical method data. with some
outstanding information and
logical and Three examples data.
efficient method; four key
financial
Three examples institutions are
of four key provided and
financial justified with
institutions are required
provided and information and
justified with full relevant data
information.
Efficient analysis
and reliable data
and sources
1.2 Analysis of Clearly identify Clearly identify Clearly identify Identify the Failing to
three financial the three the three the three three financial identify the
management financial financial financial management three financial
questions management management management questions with management
questions with questions with questions with some analysis questions with a
exceptional good good analysis proper analysis and explanation proper analysis
analysis and and explanation and explanation and explanation
explanation Events selected
Events selected Events selected from mass Events selected
Events selected from mass from mass media for from mass
from mass media media for media for illustration of media for
for illustration of illustration of illustration of three financial illustration of
three financial three financial three financial management three financial
management management management questions are management
questions are questions are questions are relevant questions are
exceptionally very relevant relevant with however with not relevant and
relevant with with good proper some without
outstanding explanation and explanation and incomplete explanation and
explanation and analysis analysis analysis and analysis
analysis explanation

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2. Fact Finding of Australian financial market regulation
2.1. Fact finding Efficiently using Using relevant Data and Using limited No or inadequate
of the listing on data and data and information data and using of
ASX information information derived from information secondary data
derived from derived from designated derived from and information
2.2. Fact Finding designated designated source to designated for fact finding.
of requirements source to provide source to provide a proper source to Incomplete
on Financial an excellent fact provide a good fact finding and provide a fact analysis.
advisory service finding and fact finding and analysis to finding and
registration analysis to analysis to address the analysis to
address all the address the questions. address the
questions. questions. questions.
Analysis is Analysis is
justified and justified and
presented in an presented in a
efficient, proper and
analytical and logical manner.
logical manner.
3. Risk analysis and project evaluation
Perform a Presenting a Presenting a Presenting a Presenting a No or incorrect
sensitivity correct and well- correct and correct correct sensitivity
analysis with presented well-presented sensitivity sensitivity analysis.
data provided sensitivity sensitivity analysis with analysis with
analysis with analysis with proper analysis proper analysis
proper analysis proper analysis and justification. and
and justification; and justification. justification.
However, there
Analysis is taken may be some
with exceptional incorrect
good justification calculation,
and presentation limited analysis
of data and and
calculation. explanation.
4. Academic writing
4.1 Presentation, Demonstrated a Very rational Demonstrating Demonstrating No relevant
structure and high level of demonstration the ability to limited skills of justification
academic writing understanding of the ability to present the academic using data and
and skills of present the ideas in proper writing in terms information
academic writing ideas in proper analytical and of structure, derived from the
by means of analytical and contextual level. presentation, analysis of
criticism, logical contextual level. wordings and financial
argument, and referencing. statements;
interpretation of
data and Failing to meet
information. the requirements
of academic
writing in terms
of structure,
presentation,
wordings and
referencing.

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5. Presentation
5.1 Presentation Exceptionally well Very well Adequately Basically Insufficiently
content summarised and summarized and summarized and presented presented or
presented presented good presented correct answers incorrectly
excellent answers answers for the correct answers for the group presented
for the group group for the group assignment. answers for
assignment assignment assignment Errors might group
questions questions question present but assignment
minor questions
5.2 Presentation The presentation The The presentation The The presentation
skill is cohesive& presentation is is somewhat presentation is is not cohesive
highly mostly cohesive cohesive cohesive & nor
professionally & professionally &professionally professionally professionally
presented presented presented presented at presented
times

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Faculty of Higher Education

Assignment Cover Sheet

Unit Code

Unit Name

Your Campus and Interactive

Tutorial Group Number
Your Lecturer

Is this a Group or Individual If Group, state your group number _________

assignment

Due Date

Declaration
Complete this and attach as a front cover sheet to your Blackboard submission

We certify that:
1. This assignment is our own work. We have acknowledged and disclosed any assistance received in its
preparation and cited all sources from which data, ideas, words (whether quoted directly or paraphrased) were
taken.
2. This assignment was prepared specifically for this unit only.
3. The reference list is truthful and accurate and in Harvard referencing style.
Student name/s Student number Which section(s) did each
[must be correct] person work on

HI5002 Finance for Business Group Assignment T1 2020