200488 Financial Analysis Assignment Sample

Subject Code : 200488
University : Western Sydney University My Assignment Services is not sponsored or endorsed by this college or university.
Subject Name : Corporate Financial Management

Table of Contents

Answer to part A and B.

Answers to C.

Answers to D..

Answers to E.

Answers to F.

Answers to G..

Corporate Financial Management - Answer to Part A and B

Period 1

Date	S & P Data	Company data	Share Price return ( Rj)	Market Return (Rm)	Risk Free Rate ( Rf)	( Rj-Rf)	(Rm-Rf)
01/02/2014	1859.45	28.28	0.012	0.007	0.335	-0.323	-0.328
01/03/2014	1872.34	28.62	-0.001	0.006	0.330	-0.330	-0.324
01/04/2014	1883.95	28.60	0.001	0.021	0.310	-0.309	-0.289
01/05/2014	1923.57	28.63	0.006	0.019	0.303	-0.297	-0.284
01/06/2014	1960.23	28.80	0.008	-0.015	0.285	-0.276	-0.300
01/07/2014	1930.67	29.04	-0.001	0.038	0.280	-0.280	-0.242
01/08/2014	2003.37	29.02	-0.005	-0.016	0.291	-0.296	-0.307
01/09/2014	1972.29	28.87	0.011	0.023	0.273	-0.262	-0.249
01/10/2014	2018.05	29.18	-0.014	0.025	0.268	-0.282	-0.243
01/11/2014	2067.56	28.77	-0.005	-0.004	0.243	-0.249	-0.248
01/12/2014	2058.90	28.62	0.009	-0.031	0.217	-0.208	-0.248
01/01/2015	1994.99	28.87	0.004	0.055	0.206	-0.202	-0.151
01/02/2015	2104.50	28.98	-0.013	-0.017	0.204	-0.217	-0.222
01/03/2015	2067.89	28.60	0.010	0.009	0.199	-0.189	-0.190
01/04/2015	2085.51	28.87	-0.006	0.010	0.237	-0.243	-0.226
01/05/2015	2107.39	28.70	-0.001	-0.021	0.245	-0.246	-0.266
01/06/2015	2063.11	28.66	0.019	0.020	0.239	-0.220	-0.219
01/07/2015	2103.84	29.20	-0.003	-0.063	0.224	-0.227	-0.286
01/08/2015	1972.18	29.11	-0.014	-0.026	0.222	-0.236	-0.249
01/09/2015	1920.03	28.71	0.003	0.083	0.216	-0.212	-0.133
01/10/2015	2079.36	28.81	-0.003	0.001	0.234	-0.237	-0.234
01/11/2015	2080.41	28.74	0.001	-0.018	0.234	-0.233	-0.252
01/12/2015	2043.94	28.77	0.006	-0.051	0.225	-0.219	-0.275
01/01/2016	1940.24	28.95	0.002	-1.000	0.204	-0.202	-1.204

Period 2

Date	S & P Data	Company data	Share Price return ( Rj)	Market Return (Rm)	Risk Free Rate ( Rf)	( Rj-Rf)	(Rm-Rf)
01/02/2018	2713.83	24.35	0.076	-0.027	0.235	-0.159	-0.262
01/03/2018	2640.87	26.21	0.022	0.003	0.224	-0.202	-0.221
01/04/2018	2648.05	26.78	0.072	0.022	0.226	-0.153	-0.204
01/05/2018	2705.27	28.71	-0.014	0.005	0.230	-0.244	-0.225
01/06/2018	2718.37	28.31	-0.059	0.036	0.222	-0.282	-0.186
01/07/2018	2816.29	26.63	-0.008	0.030	0.217	-0.225	-0.187
01/08/2018	2901.52	26.42	0.031	0.004	0.213	-0.183	-0.209
01/09/2018	2913.98	27.23	0.017	-0.069	0.217	-0.199	-0.286
01/10/2018	2711.74	27.70	0.017	0.018	0.221	-0.203	-0.203
01/11/2018	2760.17	28.17	-0.002	-0.092	0.221	-0.222	-0.312
01/12/2018	2506.85	28.13	-0.024	0.079	0.200	-0.224	-0.122
01/01/2019	2704.10	27.46	0.077	0.030	0.187	-0.110	-0.157
01/02/2019	2784.49	29.57	0.048	0.018	0.176	-0.128	-0.158
01/03/2019	2834.40	30.98	-0.015	0.039	0.162	-0.177	-0.123
01/04/2019	2945.83	30.52	0.059	-0.066	0.154	-0.094	-0.219
01/05/2019	2752.06	32.33	0.072	0.069	0.136	-0.065	-0.068
01/06/2019	2941.76	34.65	0.060	0.013	0.114	-0.054	-0.101
01/07/2019	2980.38	36.74	-0.013	-0.018	0.109	-0.121	-0.127
01/08/2019	2926.46	36.27	0.017	0.017	0.079	-0.062	-0.062
01/09/2019	2976.74	36.87	0.065	0.020	0.085	-0.020	-0.065
01/10/2019	3037.56	39.28	-0.091	0.034	0.085	-0.176	-0.051
01/11/2019	3140.98	35.72	0.157	0.029	0.095	0.062	-0.067
01/12/2019	3230.78	41.33	0.126	0.035	0.099	0.027	-0.065

(Yahoo Finance, 2020)

Corporate Financial Management - Answer to Part C

Period 1

Particular	( Rj-Rf)	(Rm-Rf)
Mean	-0.252	-0.251
Standard Deviation	0.04	0.05
Variance	0.00	0.00
correlation coefficient	0.75
Beta	0.133

(Yahoo Finance, 2020)

Period 2

Particular	( Rj-Rf)	(Rm-Rf)
Mean	-0.140	-0.160
Standard Deviation	0.09	0.08
Variance	0.01	0.01
correlation coefficient	0.65
Beta	-0.002

(Yahoo Finance, 2020)

Result Analysis

The period-1 mean of the data reveals that the Rf-RM is having the -.252 and .251 which is interlink to each other. The standard deviation of the period is also .04 which reflects the company has less variation in its share price which is based on the marketing factors. The correlation co-efficient is showing .745 points which is showing the positive indicator as company is having good outcomes. The correlation of coefficient of second period is also showing the .65 points which is showing the less variation in the share price as compared to the industry market rate (Yahoo Finance, 2020).

Corporate Financial Management - Answer to Part D

Period 1

Regression Statistics
Multiple R	0.005340645
R Square	2.85225E-05
Adjusted R Square	-0.045424726
Standard Error	0.211736756
Observations	24

(Yahoo Finance, 2020)

	Df	SS	MS	F	Significance F
Regression	1	2.81329E-05	2.81329E-05	0.000627513	0.980240756
Residual	22	0.986313984	0.044832454
Total	23	0.986342117

	Coefficients	Standard Error
Intercept	-0.03955233	0.043607034
X Variable 1 Beta	0.133332904	5.322628236

(Yahoo Finance, 2020)

Period 2

Regression Statistics
Multiple R	0.003317
R Square	1.1E-05
Adjusted R Square	-0.04761
Standard Error	0.042067
Observations	23

(Yahoo Finance, 2020)

	Df	SS	MS	F	Significance F
Regression	1	4.09E-07	4.09E-07	0.000231	0.988015
Residual	21	0.037162	0.00177
Total	22	0.037162

	Coefficients	Standard Error
Intercept	0.010004	0.009975
X Variable 1 Beta	-0.0024	0.157979

Corporate Financial Management - Answer to Part E

Explanation to Beta Value

Beta is the measure of the market volatility that has been influenced through the various factor such as Micro and macroeconomic factors. If the stock price move to more than 1 then stock beta is more than 1.From the above beta value of period one 0.133 it can be observed that if the market change by 1 then stock price will affect by 0.13 time positively. From the period two beta value is -0.0024 and can be observe that if the beta value is negative then stock price will move to reduction by 0.0024 (Yahoo Finance, 2020).

Corporate Financial Management - Answer to Part F

Company Profile

Woolworth group limited operate in the retails store across the world. This company is having 180 supermarket of retails store and also engage in whole sale business. This company is also having the hotel segment which offer the hospitality service including food, drinks and casino in Australia. Woolworth group limited is having the revenue of $ 59984000 with net profit of $ 2693000. It was founded in 1924 based in Bella Vista, Australia (Yahoo Finance, 2020).

Corporate Financial Management - Answer to Part G

Reason for Different Beta of Two Period

The main reason of difference of the beta of the two companies is related to the changing share price of the company marketing return index related to the particular period. The factors affecting share price of company in the particular period is changed differently in both the time period. However, the environmental factors, profitably and market sluggish changes may impact the business which eventually impact the share price. The changes in share price will also negatively impact the beta of the company in the two particular period (Yahoo Finance, 2020).

References for Corporate Financial Management

Yahoo Finance, (2020), Yahoo finance, share price data and market analysis, retrieved form https://finance.yahoo.com/quote/WOW.AX/profile?p=WOW.AX

Woolworths, (2020), yahoo finance, share data finance, retrieved from https://www.woolworthsgroup.com.au/page/investors/our-performance/reports/Reports/Annual_Reports

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Financial Management Assignment Help