FINA6000 Managing Finance Assessment Assessment 3 - Case Analysis Individual/Group Using Eagers Automotive LTD. and Appen LTD, pair of companies listed on the Australian Securities Exchange (ASX) from yahoo finance.

1.

(a) Compare financial performance of the two companies using the latest annual reports. You are required to use measures such as changes in Revenue, Return on Assets, Return on Equity, Earnings Per Share and Dividends Per Share using the last two years annual reports

(b) Using daily stock market prices and the ASX300 index values, determine the daily stock returns, daily market index returns, arithmetic mean and geometric mean of the daily stock returns and index returns using data for the period 4 January 2021 to 30 June 2022. Please ensure that your chosen indexes are not what are called "accumulation indexes" as these include dividends.

(c) Using the Capital Asset Pricing Model (CAPM), determine the cost of equity (also called the

required return to equity) of the two companies allocated to you.

(d) Using the latest Balance Sheets of the two companies, determine the capital structures of the two companies and make a well-reasoned argument for similarities or differences in the capital structures of the two companies. In your discussion you are expected to refer to the industries that they belong to and also to other factors that influence capital structures. (e) Having determined the capital structure of the two companies, using other relevant information, calculate the weighted average cost of capital (WACC) of the two companies and explain why the two companies have different WACCs.

(f) Based on the calculations in Part (a) and Part (b), provide reasons why there could have been differences in performance between the two companies. You are expected to refer to company and industry factors.

(g) Critically evaluate the use of capital budgeting techniques in Asia Pacific countries and in your answer you should also explain whether the techniques are used to the same extent in the major countries of the region. (10 marks) Consider the following as you work on this assignment:

Data sources are annual reports, yahoo finance (au.finance.yahoo.com) and any other relevant sources You are expected to do calculations on an Excel Spreadsheet but the Assessment will be presented in a report format in a Word document.