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Choose 2 local companies listed on the Stock market and extract 3 years of data. For each of the companies chosen, carry out an analysis

  1. Choose 2 local companies listed on the Stock market and extract 3 years of data.

For each of the companies chosen, carry out an analysis of how their decisions or actions over these years include/portray the existence of the any of the two of the six principles of finance that we have looked at; namely:

  • Time value of money
  • Risk versus return
  • Diversification of risk
  • Financial markets are efficient
  • Management versus owner objectives
  • Reputation matters

  • You have to look closely at your choice of these two principles of finance and analyse its importance towards the companys investment decisions.

  • Provide proper calculations/trend analysis to justify the application/existence of each of these two principles.

  • To obtain your other variables, which may not be available in the statements, you may use either the RBF documents, financial intermediaries releases or particular indexes, for your calculations. These needs to be referenced properly and where possible a copy needs to be placed in the appendix section. (Do not use unrealistic date ie. exaggerated rates, maturity and other data).

  • Where calculation is not feasible then use press releases and other reports to support your ideas/explanation.

  • Compare and contrast the results obtained of the two different companies.

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