FINC20018 Managerial Finance T2 2021

Assessment 2 – Practical and Written Assessment
Group Assignment

Weighting: 30%
Group formation

• For on-campus students, the group means 2 students per group.
• For distant learning (FLEX) students, while a group of 1 is likely to be more practical groups of 2 are optional.

The task
• The assignment is designed to assess your understanding of business finance theories and
explores a number of areas within the course by applying your learning to a real company.
Through this project, you need to be able to demonstrate critical and analytical skills in
academic writing, various research synthesising skills and be able to communicate clearly and
effectively.
• Please note this is a finance assignment for real business, so make sure you have the appropriate
combination of quantitative and qualitative analysis.
Format and referencing
• Response to case study must be in Report Format and include an executive summary, table of
contents, introduction, body with suitable headings and sub-headings, conclusion and wide
variety of references.
• Report fonts must be either Arial or Times Roman 12 pt and 1.5 spacing for narrative, 16 pt
bold for major headings and 14 pt bold for sub-headings.
• Word count is 2,000 words maximum (excluding tables, formulae, reference list and
appendices)
• Inclusion of diagrams and tables to support the response is strongly encouraged.
• Proper referencing of all content including figures, tables and narrative using APA Reference
system.
• Demonstrations of using your initiative and supporting your answers with interesting references
to contemporary issues from newspapers, journals, professional publications, web resources i.e.
extracts from podcasts, financial institutional websites etc. Wikipedia and Investopedia are not
recommended to be used as sources.
Submission method
• Online submission, must be submitted as a word document. PDF submissions will not be
accepted.
• For on-campus students this is a group assignment, only one member of the group will submit
the assignment online by uploading to the Moodle (DO NOT use turnitin to check similarity
for the draft work, and the second person in the group submit the final assignment - this
will result in a very high similarity score and penalty will apply)
Issues that will affect your marks include:
• Create your own cover sheet with the names of the students in the group clearly indicated.
• The word limit is approximate, 5% leeway above or below is acceptable, if you exceed the word
limit significantly marks will be deducted.
• Turnitin will be used to check percentage similarity. Do not copy the questions from the
assignment instruction, as this will increase your percentage similarity.
• Where copying from other sources results in high percentage similarity, marks will be deducted.
Therefore, proper use of in-text referencing is important. Avoid direct quotes.
• Do not include any scanned picture files of your answers or those of other students as this will
be considered a plagiarism offense.
• Only provide images, pictures, figures or tables sourced from references that you are unable to
adapt or modify in MS-word for the purposes of your assessment. Make sure you reference the
sources of any images correctly.
• If percentage similarity exceeds 20%, marks will be deducted based on a progressive scale as
determined by the course co-ordinator.
• Under extreme circumstances where high % similarity indicates copying from written works of
other students in CQU, other universities or any other institutions world-wide, the assignment
will be reviewed by the academic misconduct board.
• Penalty for the late submission is 5% per calendar day including Saturday and Sunday.
Task requirements
The mining sector in Australia rewarded many investors in the good times of mining boom. One of the
popular shares in this sector was BHP Group Ltd (ASX: BHP). Apart from mining of iron ore the
company has been pumping oil and gas from the ground in the past 50 years, but now it may be the
time for them to turn off the crude taps as a result of investors’ concern over environmental risk, social
risk and corporate governance risk. On 22 July 2021, BHP announced the signing of a nickel supply
agreement with Tesla and will collaborate with the electric carmaker on lowering carbon emissions in
the battery supply chain where other large automakers are also aiming for long-term decarbonization.
The BHP share was traded at $37.50 on 22 July 2020 and closed at $51.45 on 22 July 2021,
representing 37% increase in share price plus a dividend yield of 4% fully franked.

Your task is to undertake a valuation for BHP share -
• Apply the various valuation models and relative measures taught in this course to assess
whether BHP share is correctly valued.
• Your analysis should include relevant data to help a prospective investor to decide whether he
should invest in this company.
• Your analysis should also include the company’s overall sustainability and its performance in
environmental, social, and governance aspects.
• Explain all your assumptions used in the valuations and estimations and critical discuss the
limitations of your analysis and any other risks that may affect investment decision making