VBE1000 Assessment 3 Business Report – Part 1

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Why did you choose this Company?

I choose this company because my family shop here so I want to find out more about the company.

Brief Description of the Company

Instructions for completing the table below:
Based on the closing share price of your company on the 1st July of the current financial year, you will
fictionally purchase shares up to the value of $5,000.

1. Type your answer in the middle column

2. Provide a screen shot of the source for each answer, creating a separate appendix for each
screen shot. Indicate which appendix contains the relevant screen shot in the right-hand column.
(On occasions one screen shot may be the source for multiple questions.)

Informat
ion
Require
d
per work
require
ment Your Answer Appendix with supporting documentation
Name of JB HI-FI LIMITED
your JBH
company
and ASX
code

What do JB Hi-Fi was founded in

you know 1974 by Mr. John
about this Barbuto (JB), trading
company from a single store in
East Keilor, Victoria. He
has a simple philosophy:
provide a range of Hi-Fi
and music recording
 VBE1000 Assessment 3 Business Report – Part 1
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experts at Australia's
lowest prices. The
business was sold in
1983 and by 1999, nine
other stores were
opened. The Company
is a specialty retailer of
home consumer
products with particular
focus on consumer
electronics, software
(including music, games
and movies), whitegoods
and appliances.
Number $42.80 closing share
of shares price on 1st July 2020
purchase 5000 : 42.80 = 116
d up to shares
$5000
using
closing
share
price from
above
(include
calculatio
ns)
Total 116 shares $42.80 = $
amount of 4964.8
your
investmen
t as at the
nominate
d date –
Calculatio
ns need
to be
shown
Latest 6 march 2020
dividend $0.99/share
paid (date
and
amount
paid)

Using the 2019 ANNUAL RERPORT – which can be located on the Internet.
 VBE1000 Assessment 3 Business Report – Part 1
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Name of Mr Richard Murray
CEO or
Managing
Director

Salary $ 3,393,366
and
number of number of shares:
shares of 270,823
CEO or
Managing
Director

Profit/Los $ 249.8 million

s after tax
for the full
financial
year –
consolidat
e figures
 VBE1000 Assessment 3 Business Report – Part 1
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Total of 2,548.8 billion
Assets – Australian dollars
consolidat
ed figures

Number 12,500 employees

of
Employee
s

Informa
tion
Require
d
per
work
require
ment Your Answer Appendix with supporting documentation
What is $ 45
the
closing
ASX200
index on
Day 1 of
Week 1?
What The "ASX200" is a
does the benchmark index that
ASX200 was created in the
represent
year 2000
?
and consists of
the 200 largest public
 VBE1000 Assessment 3 Business Report – Part 1
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companies by market
capitalisation listed on
the ASX. As with all
indices, the ASX200 is
measured in points
and tracks the
combined movements
of all 200 stocks within
the index

From an 1. A share is a single

investor’s unit of ownership in
point of a company or
view, financial asset. A
briefly share represents an
explain: investors ‘share’ of
1. what the ownership of a
a publically listed
share company.
is
2. one 2. The right to vote on
advan company decisions
tage and the right to receive
of a share of any profits a
being company makes.
a
share 3. Risk of financial loss
holde
r and
3. one
disad
vanta
ge of
being
a
share
holde
r

Briefly 1. A share of profits is

explain called a dividend
the tax A dividend is usually
implicatio paid twice a year:
ns of The first dividend will
being a be paid in part
sharehol throughout the year,
der from: based on mid-year
1. an profits - this is called a
incom temporary dividend.
e Dividends will
point eventually be paid
 VBE1000 Assessment 3 Business Report – Part 1
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of after the profit for the
view year is determined.
and This is called the final
2. a dividend.
capita 2. Receipts from the sale
l of shares are not
gains assessable income –
tax but any capital gain on
point the shares is subject
of to capital gains tax
view.

In 1. Return on
relation Investment (ROI) is
to a performance
investing measure used to
in evaluate the
shares, efficiency of an
briefly investment or
explain: compare the
1. what efficiency of a
does number of different
the investments. 
term
Retur 2. ROI calculates the
n on success of an
Invest investment but the
ment investment doesn’t
mean have to be external.
s and Once business have
2. what calculated the
is the success of an
signifi investment business
cance can optimize to
of the improve this in the
term future.
Retur
n on
Invest
ment

Gain/Los $45.00 per share last day 27 th

s on July 2020
investme $42.80 per share day 1st July
nt in your 2020
chosen
company Gain $2.2 per share
116 shares x 2.2 = 255.2
If you
chose to
sell your The share price has increased
share on from ($42.80 ) on 1/7/2020 of
 VBE1000 Assessment 3 Business Report – Part 1
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Day 1 the tracking period to ($45) on
Week 1, 27/07/2020. Therefore the
would Proceed from the sale of the
you have share would be a gain of
made a $255.2 on my investment
profit or a
loss on
your
investme
nt?

Please
provide
your
calculatio
ns and
all
supportin
g
documen
tation.

Exel
graph –

Chart the
weekly
moveme
nts of the
ASX200
from 1st
July of
the
current
financial
year to
Day 1
Week 1.

You will
need to
attach
this in
the
appendix
.
 VBE1000 Assessment 3 Business Report – Part 1
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Explain During the monitoring period
one (from July 1 to July 27).
reolason Starting with a share price of $
for one 42.8, it began to have a
fluctuatio positive impact on its share
ns in the price rise, raising the stock
ASX200 price to $ 43.48 at 7/7/2020.
graph. but there was an immediate
You will drop from July 8 to $ 42.4
need to because trading during this
provide global pandemic caused a
supportin sharp decline in these stocks
g throughout the year. However,
documen the share market ended up
tation. rising at 27/07/2020 with share
price is $45

ASX and the Sharemarket