ACCT1063 Management Accounting and Business - Assignment Help

The submission files should be uploaded on Canvas. The submission link is available in the Assignments 2 tab on Canvas.

Please name your assignment in the following manner: your last name, your first name, and your student number, for example, Kox-Roberts3123007.

You must ensure the first page of your assignment contains: Photo of your face, your full name, student number, and your chosen company’s name.

Video recording must be included in your assessment which includes a brief introduction, findings, conclusion, and recommendations as a part of the business report. Video recording time should not be more than 5 minutes.   In the video, you must be seen doing the presentation.

It is your responsibility to ensure that you have submitted the two parts of the assignment correctly and these are available for marking via Canvas by the due date.

Length:

The total word limit for the Business Report is 2000 words +/- 10%.

The word count does not include the title, table of contents, list of references, and appendices.

Formatting:

The report should be written in Times New Roman, 12-point font, single spacing, minimum 3 cm margin on left and right side of paper. Include a space between paragraphs.

1. Title
2. Executive Summary
3. Table of Content
4. Introduction (overview)
5. Data Analysis based on:
   1. Leverage
   2. Capital structure policies
   3. Bond Valuation and Share Valuation and dividend policies  
6. Conclusion and Recommendations
7. References
8. Appendices

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References:

Full referencing (in-text citation and reference list) is required for this assignment. Please follow RMIT Harvard referencing style. You need to provide at least 5 academic references.

Penalties for Late Submission and Exceeding Word Limits:

Unless an extension has been granted, penalties will be applied for late submission.

All assignments will be marked as if submitted on time. Late submissions of assignments without special consideration or extension will be automatically penalised at a rate of 10% of the total marks available per day (or part of a day) late. For example, if an assignment is worth 30 marks and it is submitted 1 day late, a penalty of 10% or 5 marks will apply. This will be deducted from the assessed mark. Assignments will not be accepted if more than five days late unless special consideration or an extension of time has been approved.

Assessment items that exceed the word limit by more than 10% (not including references, tables, figures, and appendices) will attract a marking penalty that is 5% of the total available marks. For example, an assessment item with a word limit of 2,000 words will incur a penalty of 5% if the submission is more than 2,200 words.

Academic Integrity and Plagiarism:

Academic integrity is about honest presentation of your academic work. It means acknowledging the work of others while developing your own insights, knowledge, and ideas. Plagiarism is the presentation of the work, idea or creation of another person as though it is your own. It is a form of cheating and is a very serious academic offence that may lead to expulsion from the University.

All submitted documents will be checked by Turnitin. Please check the similarity rate once you submit your assignment, and ensure they're your own work, and that you've acknowledged the work and ideas from other sources. You should keep your similarity rate less than 15%.

If one student submits work that's completely or partly copied from another, both students can be charged with academic misconduct. And recycling your own work can be plagiarism.

RMIT’s policy on Academic Integrity can be read at:

https://www.rmit.edu.au/students/student-essentials/assessment-and-results/academic-integrity#support

Business Report detail requirements:

Students are required select one of following 3 companies and download company annual reports 2017 to 2021 (five-year annual reports)

In addition to company Annual reports, you can access yahoo finance for specific data such as market price of a share, market capitalisation and company beta etc. for example: https://au.finance.yahoo.com/quote/SE/key-statistics?p=SE

Note

Marks are allocated out of 100 for the business report and it will be proportional to 22.5 marks for the course.

1. Title: Provide a title of your report followed by a logo of your subject company.

2. Executive Summary:

An executive summary provides a condensed version of the main report in three paragraphs that discuss (1) the aim of the report, methods used to analyse financial data (e.g., trend analysis based on historical financial ratios); (2) findings; conclusion and recommendation; and (3) limitation of the report. (5 marks)

3. Table of Contents

4. Brief company and industry overview:

What is the selected company, and what industry that the selected company operates in (Hint: Technology Facility, any other Services or Manufacturing, etc.), discuss the competitive industry landscape and provide an industry outlook? What are the essential products or services in this industry? Briefly list and describe the most important ones. Who are the primary operators (leading companies) in this industry? Who are the primary buyers or customers (Hint: major markets) of the products of this industry?(5 Marks)

5. Data Analysis
   • Operating and Financial Leverages(550 words) (5 + 4 + 6+ 5 + 5 = 25 Marks)

In answering 5.1, find the relevant figures and information in Selected  Annual Reports for 2021, 2020 and 2019. These reports could be found in CANVAS under Assessment 2.
The figures are reported in Dollars / Cents. In the annual reports that you need to go to are:

-Underlying EBIT
-Revenue
-Key Metrics (key metrics are statistics which values give measures of an organization's overall health and performance).

Assumptions:

Cost of Sales (COGS) = Total variable cost

Gross Profit = Contribution Margin

Other operating cost = Fixed operating costs

Required:

• For each year from 2019 to 2021,
  Calculate for the breakeven point in Dollars for selected company. Comment on the Results.
• Define the three types of leverage and how these are calculated. What do higher values of each type of leverage mean in terms of profitability potential and risk?
• Using the Two Years Percentage Change method, calculate for selected company's

            DOL, DFL and DTL results for each year from 2019 to 2021.

• Explain how your subject company has been able to reduce their costs using one structural cost driver and one executional cost driver. Provide details and reference.

• Analysis of company’s capital structure policies (maximum 550 words) (6+6+15+3= 30 marks)

Describe the capital structure considering the following criteria:

• Why is capital structure analysis useful for a company? (Discuss optimal capital structure, firm value, why higher EPS does not always support for the optimal capital structure).
• What does the capital structure theory say about a company's capital structure?
• Assess your subject company’s capital structure over five-year period (i.e., 2017 – 2021) using the data collected from five years annual reports.

1. Use Debt ratios, Debt – equity ratios and Times interest earned ratios to assess the company’s current performance against its past performance ( i.e., trend analysis) and its current performance against two competitors (i.e., industry analysis). Please use 5–year financial data from 2017 to 2021 (please conduct performance analysis over the 2017–2021 period). You are expected to calculate for these ratios yourself rather than picking these from financial databases that may have a different definition of the ratios.
2. Based on the findings found in a, what is your opinion about the company's capital structure, specifically the degree of financial leverage. (HINT: Make an assessment about the company’s capital structure based on these solvency ratios).

• Analysis of company’s long-term debts(bonds), share valuation, and dividend policies (maximum 550 words) (5+ 5 + 15 = 25 marks)
  • Explain the relationships between bond prices and interest rates and explain why it is important for company managers as well as investors to understand the relationship.
• What long term borrowings have been availed of by your subject company (e.g., bonds, long term loans)? Provide information on terms (e.g., coupon rates, maturity period for bonds, interest rates and term period for loans).
• Describe the types of shares held by the company. What can you say about the history of company share issues, retained earnings and payment of dividends? Are they following any specific policies for these? (please refer to notes to the accounts in the annual reports).                    

6. Findings, Conclusion, Recommendation and recommendations and limitations of the report (5 marks)
7. References, minimum 6, and report format (5 marks)
8. Appendices