To evaluate the performance of a firm and its share’s value a financial analyst must be able to analyse
the firm’s financial statements. When analysing these statements, the analyst must focus on cash flows
of the firm because ultimately it is changes in the cash flows of the firm that determines its value. This
is also a market consensus. Hence understanding how and why cash flows change is an indispensable
component of valuation of securities.
The objectives of this assignment are:
1. To equip you with a good understanding of the financial statements of the firm;
2. To build up your analytical skills in the area of cash flows analysis;
3. To apply the methods of valuation to value a real world company.
In addition to developing your knowledge of financial statements and valuation of security, the
assignment aims to develop the ability to work in groups: learning how to coordinate with and learn
from peers as well as how to deal with any negative issues that may arise in the group process. As such,
the assignment submission will include an evaluation of the group process. The group evaluation will
not attract any marks; however the rest of the assignment will not be marked without a group
evaluation. To assist in the smooth running of groups some guidelines are included with the assignment
instructions. These are to be used as a guide only. Groups have their own personalities, so it is
important to establish your group norms and plans in a way that best suits your group.
Please ensure that group process problems are discussed and resolved as they arise. If your group
encounters any problems that it cannot resolve you can ask your course coordinator to join the group
for advice or mediation. Do not leave this to the last minute. Your course coordinator will require all
group records to have been kept so that an objective record of proceedings is available.
As professionals, you are required to design your own evaluation form for your group
assignment. The evaluation should assess whether your group has achieved your stated goals
in completing the assignment.
Assignment groups will be formed in week 2, week commencing August 5
. It is your
responsibility to ensure you are a member of a group. The group assignment can be done
in groups of 3 or 4. The assignment takes the form of case studies or research projects.
Each group member will provide all other group members with contact details, either phone number or
email address. A date and time within the next 7 days will be set for the first group meeting.