ACCT6004 Finance Session 3, 2021
\nAssessment 2: Business Case Studies 1
\nDue date: 17 December 2021, 11PM (AEDT)
\nGeneral overview
\nThis assignment has a 25% weighting in your overall mark for this unit and focuses on content from
\nTopics 3, 4 and 5. It will be marked out of 25. Your assignment submission will consist of a word
\ndocument that should not exceed 1,500 words (excluding the reference list).
\nOverall, the assignment consists of:
\na. 6 (six) questions on time value of money and bond valuation (part 1);
\nb. 3 (three) tasks as part of a risk and return analysis (parts 2 and 3).
\nInstructions:
\nDo NOT include a coversheet on your assessment document. Your details are known to us because
\nyou submit electronically through your login.
\nYou have been assigned an ASX listed company as the context for this assignment. The company you
\nwill use is Bega Cheese, ASX code (BGA). You will also download a spreadsheet to Help you in
\ncompleting part 1 of the assessment. This spreadsheet can be located in the Assessment 2 folder
\nunder the Assessment Tasks and Submission tab on the unit blackboard site.
\nAll input data you need to find for calculations in part 2a of this assignment must be sourced from S&P
\nCapital IQ. This database will also provide you with useful information for general background
\nresearch on the company,
\nTo use this database, you will need to apply for a user account. Instructions and the link to the
\ndatabase can be found in the Web Links section of this unit\u2019s MySCU site. Please read those
\ninstructions carefully and set your account up early in the session.
\nAttempt each of the following sections in your assignment submission:
\n1. TVM and bond valuation questions (1 mark each, give answers to 2 decimal places):
\na. Bega Cheese (BGA) has decided to purchase a new asset necessary for a proposed expansion
\nto its business. The company has decided to speak with their bank. The bank is offering a fixed
\nrate of 2.55% APR, compounded quarterly. BGA is required to make payments quarterly as
\nshown in the spreadsheet every quarter for 10 years. What amount will BGA be required to
\nborrow?
\nb. Refer to the spreadsheet for the annual operating revenue of BGA. Assume this revenue will
\ngrow continuously at the annual rate shown in the spreadsheet. What is your prediction for
\nannual operating revenue for BGA in 5 years?
\nc. BGA wishes to invest funds and has several options available to it. The investment options are
\nX, Y and Z. All three of these options have equal risk. The interest rates (EAR) for these options
\nare given in the spreadsheet. What is the EAR of the investment option BGA should choose?
\nAssessment 2: Business Case Studies I ACCT6004 S3 2021
\n2
\nd. BGA is buying new property for the amount provided in the spreadsheet. To finance this, the
\nBGA\u2019s bank has offered an amortised loan at 2.55% APR, quarterly compounding, with 30
\nyears of quarterly payments. What quarterly payment will BGA have to make on this loan?
\nAssume that the entire property cost is financed and that payments are made at the end of
\neach period.
\ne. BGA has an issue of $1000 par value annual coupon bonds with 11 years remaining until
\nmaturity. The annual coupon rate is given in the spreadsheet, along with the current price of
\nthe bonds. What is the yield to maturity on the bonds?
\nf. BGA has an issue of $100 par value bonds that offers an annual coupon rate (located in the
\nspreadsheet) paid semi-annually. The bonds have 8 years remaining until maturity. The
\nmarket\u2019s required return on these bonds is provided in the spreadsheet. What is the amount
\nof each coupon payment?
\n2. Risk and return estimates (4 marks):
\na. Use CAPM to estimate the expected return for the shares of: i) Bega Cheese Ltd; and ii) a
\nhypothetical company called Flyaway with a beta of 1.20. To do this, use the yield to maturity
\nof a 10-year Australian Government bond on 26 November 2021 as a proxy for the risk-free
\nrate, assume the market risk premium is 3.50% and use the BGA\u2019s most recent 5-year beta.
\nb. Using the data from part 2a, estimate portfolio expected return and beta, assuming a portfolio
\nmade up of Bega Cheese and Flyaway with 40% invested in Bega Cheese Ltd and 60% invested
\nin Flyaway.
\n3. Risk and return analysis (15 marks):
\na. Interpret and discuss your risk and return measures from parts 2a and 2b.
\nMarking Criteria:
\nThe answer to each TVM and bond valuation question in part 1 will be marked as correct (1 mark) or
\nincorrect (0 marks).
\nGive your final answer to each of the 6 questions on a separate line in the first section of your
\nassignment submission. Give all answers to the nearest two decimal places. No part marks are
\nprovided so it is important that you round your decimals correctly.
\nParts 2 and 3 will be marked using the rubric that follows<\/p>\n
—<\/p>\n
2021 ACCT6004 Finance Session 3<\/p>\n
Business Case Studies 1 (Assessment 2)
\nThe deadline is December 17, 2021, at 11 p.m. (AEDT)<\/p>\n
a broad overview<\/p>\n
This assignment is worth 25% of your final grade for this course and focuses on material from<\/p>\n
3rd, 4th, and 5th topic (sample nursing essay examples by the best nursing assignment writing service)s It will be marked out of 25. Your assignment submission will consist of a word<\/p>\n
document that should not exceed 1,500 words (excluding the reference list).<\/p>\n
Overall, the assignment consists of:<\/p>\n
a. 6 (six) questions on time value of money and bond valuation (part 1);<\/p>\n
b. 3 (three) tasks as part of a risk and return analysis (parts 2 and 3).<\/p>\n
Instructions:<\/p>\n
Do NOT include a coversheet on your assessment document. Your details are known to us because<\/p>\n
you submit electronically through<\/p>\n","protected":false},"excerpt":{"rendered":"
ACCT6004 Finance Session 3, 2021 Assessment 2: Business Case Studies 1 Due date: 17 December 2021, 11PM (AEDT) General overview This assignment has a 25%\u2026<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8773,8771,8772,8770,8775,8776,7685,8774,8769],"tags":[1400,613,142,7594,1394,7598,7595,7593,7597,7599,7601,7590,7596,133,7655,7656,7591,7592],"class_list":["post-91975","post","type-post","status-publish","format-standard","hentry","category-all-assignment-help","category-assessment-help-online","category-assessment-help-online-in-australia","category-assessments-help","category-australia-assignment-help","category-instant-assignment-help","category-my-assignment-help","category-sample-assignment-help","category-thesis-help","tag-best-custom-essay-writing-services","tag-best-dissertation-writing-services-uk","tag-best-online-essay-writing-services","tag-cheap-custom-essay-writing-services","tag-custom-research-paper-writers","tag-custom-research-papers-writing-service","tag-essay-writer-websites","tag-essay-writing-service-quality-cheap","tag-free-research-paper-writing-service","tag-help-me-write-a-research-paper","tag-i-need-help-with-my-dissertation","tag-professional-dissertation-writing-service","tag-quick-essay-writing-service","tag-research-paper-writing-service-cheap","tag-service-writing-my-essay-write-custom","tag-someone-to-write-my-paper","tag-top-rated-dissertation-writing-services","tag-top-uk-dissertation-writing-services"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/91975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=91975"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/91975\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=91975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=91975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=91975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}