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General:   This assignment requires students to apply concepts covered in the course in order to analyse JB Hi-Fi Limited, a listed Australian company

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General:   This assignment requires students to apply concepts covered in the course in order to analyse JB Hi-Fi Limited, a listed Australian company.

 

Preparation and Assessment of the Assignment

 

1. This is a group assignment.

Students are expected to form groups of no more than 5 people. You can join a group on Blackboard, using the groups function under Assessment>Groups.

The deadline to finalise the groups is 5.00pm, Wednesday 3 June 2020. After this date, any student not in a group will be randomly placed in a group.

Group selection and management are entirely the responsibility of the group itself.

 

2. This assignment will contribute 25% towards your final mark for the course.

 

3. The assignment has a word limit of 2,000 words.  Assignments that exceed the word limit by more than 10% will be penalised. The finished assignment should be in the form of a report, therefore a table of contents, an executive summary, appropriate diagrams, charts and tables and a logical progression through the submission should all be components of the submitted work. 

 

4. The due date for the written component is 5.00pm Wednesday 22 July (week 11). Check the Course Outline for penalty for late submissions.

 

5. Allocation of marks.  Individually every member will have to submit the Self and Peer Group Assessment by 00 pm Thursday 23 July 2020. The mark awarded will be applied to the team members according to the Self and Peer Group Assessment. You are encouraged to discuss the assignment with other groups, however you should ensure that any collaboration does not extend to the written content or calculations contained in your assignments.

 

6. Presentation of the report will be held in class on Wednesday 29 July 2020. All members of a group must present. Length of presentation: 15 minutes per group.

 

7. Requests for extensions must be made in writing (not via email) to the Course Coordinator at least 48 hours prior to the submission date.  The request must also contain documentation satisfactorily supporting the request. 

 

8. It is a requirement that your group will consult a wide number of sources in completing this assignment, considerably further than just the company’s website. Those groups accessing wider sources of information are likely to achieve a better mark than those that simply rely upon financial reports. Correct referencing is required, documenting the sources for any information used in your assignment.  Any text taken directly from another source must be clearly identified and referenced correctly.

 

9. All formula and calculation expectations are dealt with in the text for this course. Where you need to invoke a theory or calculation which you have yet to study within the unit, you are expected to consult the text or alternate sources for information as required. Some helpful sources may include the following, however your research should not be limited to these:

 

 

• Company websites (usually under “investor relations”)
• Yahoo finance http://au.finance.yahoo.com/  (company profile, downloadable share price data)
• Australian Securities Exchange  www.asx.com.au  (Company profile, ASX announcements)
• Reserve Bank of Australia www.rba.gov.au (Government bonds and interest rates)
• AFR market tools  http://afr.com/markettools/  (share market data including dividend information)
• IBIS World www.ibisworld.com.au  (industry, market and company research)
• Other data bases available at UON library (DatAnalysis).

 

10. The format and presentation of all documents will be assessed.  Your assignment should be prepared as though it were for presentation in a professional environment.  A high standard of presentation is expected of your work, including:

• the structure and formatting of the assignment
• the expression, punctuation and spelling.

 

 

The Assignment:

 

In addressing the requirements below, each group should review the financial and annual reports of JB Hi-Fi Limited (ASX code: JBH). Assignment requirements are:

 

1. Provide a brief historical overview of JBH (5%)

 

2. Describe the current business activities of the company (5%)

 

3. Describe the company’s capital structure. This should include a discussion of the recent financial history and the identification and description of any changes in the capital structure that have occurred, or which are planned, preferably linking these to the discussion in parts 1 and 2 above.  (5%)

 

4. What were the major debt and equity instruments that the company had outstanding for the past five financial years (2015-2019)? Describe their key terms of issues.  (7.5%)

 

5. Analyse the past and present dividend policy of the company for the last five years (2015-2019).  (7.5%)        

 

6. Use the Capital Asset Pricing Model (CAPM) to estimate the cost of ordinary equity for the company. Explain any assumptions you make and identify the source(s) of any other information used in your calculations. (10%)

 

7. Calculate the company’s Weighted Average Cost of Capital (WACC).  Explain any assumptions you make and identify the source(s) of any other information used in your calculations.    (10%)

 

 

Checklist
coversheet completed
word limit (+/- 10%)
appropriately referenced (consistent)
carefully proof read
format and presentation reviewed
	table of contents
	executive summary
	page numbers
	consistent font/headings etc
	charts/graphs etc clear

 

Assessment criteria (note: these are not equally weighted):

 

• The scope, depth and relevance of analysis and research
• Accuracy and up-to-date information used
• For Questions 6 and 7, reasonableness of assumptions made and quality of support including referencing the sources of information for assumptions will be considered.
• Application of appropriate techniques
• The timeliness of the submission
• The extent to which the specific requirements have been met
• In relation to the structure, formatting, presentation, expression, punctuation and spelling:
  • • Consistency of formatting
    • How clear and easy to follow the submission is for the reader
    • How the various parts of the assignment have been prioritised and integrated
    • Aesthetic impact (i.e.: how good it looks!)
    • Clarity of expression
    • A high standard is expected in terms of spelling and grammar (use of the spell check function and a careful proof read should minimise any problems in this regard).