Assume you are a newly employed financial market analyst with an established bank. You are tasked...

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Assume you are a newly employed financial market analyst with an established bank. You are tasked to research into potential investment opportunities for a new client who has recently emigrated to Singapore. The new client who is in his early-40s has inherited a million dollars from his family and is looking to grow his wealth in the city state. You are required to identify 2 public listed companies in the same industry and analyze their consolidated financial statements for the last two financial years. You can access the SGX website to locate the consolidated financial statements that are found in the annual reports of the companies listed. Required: Based on the financial reports of your identified companies for the last two financial years, answer all the following questions: 1. Calculate the following financial ratios? to assess the performance of the two companies for the last three financial years (20marks). a. Price-Earnings: Market price per share/Earnings per share b. Dividend yield: Dividend per share/Market Price per share c. Earnings per share: Net Income/Average Number of Outstanding Ordinary Shares Return on Equity: Net Income/Average Equity d. Net Profit Margin: Net Income/Net Sales Revenue e. f. Cash Ratio: Cash and Cash Equivalents/Current Liabilities Debt to Equity: Total liabilities/Total equity g. All percentages and ratios are to be rounded to the nearest 2 decimal places. All dollar amounts are to be rounded off to nearest thousand and all other numerical units may be rounded to nearest whole number. When the computation of a financial ratio involves a share price, the closing share price of the companies as at the financial year should be used. You may state your assumptions where relevant. 2. Using the annual reports and publicly available information, provide reasons for significant fluctuations in the financial ratios for the last two financial years (40marks). 3. Based on the financial ratios and the analysis in your report, state which company's shares you will recommend the new client to invest and justify your recommendation. (40marks). Assume you are a newly employed financial market analyst with an established bank. You are tasked to research into potential investment opportunities for a new client who has recently emigrated to Singapore. The new client who is in his early-40s has inherited a million dollars from his family and is looking to grow his wealth in the city state. You are required to identify 2 public listed companies in the same industry and analyze their consolidated financial statements for the last two financial years. You can access the SGX website to locate the consolidated financial statements that are found in the annual reports of the companies listed. Required: Based on the financial reports of your identified companies for the last two financial years, answer all the following questions: 1. Calculate the following financial ratios? to assess the performance of the two companies for the last three financial years (20marks). a. Price-Earnings: Market price per share/Earnings per share b. Dividend yield: Dividend per share/Market Price per share c. Earnings per share: Net Income/Average Number of Outstanding Ordinary Shares Return on Equity: Net Income/Average Equity d. Net Profit Margin: Net Income/Net Sales Revenue e. f. Cash Ratio: Cash and Cash Equivalents/Current Liabilities Debt to Equity: Total liabilities/Total equity g. All percentages and ratios are to be rounded to the nearest 2 decimal places. All dollar amounts are to be rounded off to nearest thousand and all other numerical units may be rounded to nearest whole number. When the computation of a financial ratio involves a share price, the closing share price of the companies as at the financial year should be used. You may state your assumptions where relevant. 2. Using the annual reports and publicly available information, provide reasons for significant fluctuations in the financial ratios for the last two financial years (40marks). 3. Based on the financial ratios and the analysis in your report, state which company's shares you will recommend the new client to invest and justify your recommendation. (40marks).

Answer rating: 100% (QA)

To complete your task follow these steps 1 Identify two public listed companies in the same industry Research companies listed on the SGX in the desired industry Look for the companies annual reports ... View the full answer