Expected to be about $15-20$ pages long.

Selected companies: Woolworth$$s and Coles

Should have computations$/$solutions

The term report should include the following sections:

$1.$ Introduction

$-$ Provide a clear statement of objectives and an outline of the structure of the report.

$2.$ Environment, Industry and Strategy Analyses

$-$ Describe the core business of this company.

$-$ Discuss the industrial environment in which this company operates.

$-$ Discuss the competitiveness of this company and challenge it faces.

$-$ Summarize the financial ratio analyses you performed in unit preparation report and comment on the company$$s condition.

$3.$ Accounting Analysis

$-$ Identify the company$$s one key accounting policy.

$-$ Discuss how this accounting policy relates to the company$$s business operation

$-$ Identify areas that require the use of management judgment when applying this accounting policy and provide explanations.

$-$ Comment on the appropriateness of the application of this accounting policy.

$4.$ Capital Structure and Payout Policy Analysis

$-$ Discuss type and amount of the financial securities this firm issued for financing $($e$.$g$.$ common shares, preference shares, corporate bond, bank loan, etc.$)$

$-$ Discuss amount and form of the pay out this company made $($e$.$g$.$ cash dividend and share repurchase$).$

$-$ Comment on the appropriateness of the company$$s capital structure and payout policies.

$5.$ Equity Valuation

$-$ Perform equity valuation using Discounted Cash Flow Model

$-$ Perform equity valuation using Abnormal Earnings Model

$-$ Perform equity valuation using Price Multiple Model

$-$ Perform sensitivity tests and comment on the robustness of your valuations

$-$ Compare your valuation with the current market share price and make recommendation