The University of Sydney Business School

Finance Discipline
FINC 2011 Corporate Finance 1
Maor !ssi"n#ent
Due Date$ %p# &ed 22 'ct 201%
!S() listed Co#pany *aluation +eport
This report requires you to undertake a valuation exercise on an Australian Securities
Exchange (ASX) listed company. You are required to use the models presented in
the course to calculate a share price or the company and then critically evaluate the
value you have determined.
+e,uired$
!. Select a pu"licly#listed company on the ASX that has previously made dividend
payments. The selected company should not "e classiied "y the ASX as a
$%inancial&' $(etals and (ining& or $)tilities& company.
*. )sing appropriate historical data calculate a "eta or the company you have
selected. +ompare your "eta to those pu"lished "y research houses (ie (orningstar
etc) or your chosen company. Are the values dierent, -hy,
.. )sing the +A/( model determine an appropriate discount rate or your company.
)se a market risk premium o 0.12 p.a. in your calculations..
3. )sing a constant gro4th rate o 52 pa. (commencing immediately) in the constant
dividend gro4th model' determine a current stock price or your company.).
1. Suppose that the previous dividend gro4th rate 4as only expected to apply or 1
years "eore reverting to a long#term gro4th rate consistent 4ith the orecast inlation
rate. 6emonstrate the impact this 4ould have upon your stock valuation.
0. 7o4 disregard the previous gro4th orecasts. )sing your o4n varia"les' determine
a current stock price or the company that you think might represent something close
to its air value. -hy do you "elieve the varia"les you have chosen give a more
appropriate value than those used in questions 3 and 1, 6iscuss.
For#attin" and -resentation$
a. The assignment should "e no more than !* pages' 4ith !.1 line spacing and si8e
!* Times 7e4 9oman or Arial %ont. (arks 4ill "e reduced "y !:2 or each page that
the assignment exceeds !* pages. ;ence your mark 4ill "e reduced to 8ero i the
assignment exceeds ** pages. <revity and conciseness are key ingredients o a
highly successul report. You 4ill "e penalised or inappropriate ormatting..
". (ake sure you use proper reerencing in your assignment. All essays must include
a list o reerences in academic orm using the author # date (;arvard) citation style.
You 4ill "e penalised i you use inappropriate reerencing..
c. /ay particular attention to presentation. A signiicant component o your mark 4ill
"e "ased on presentation. Avoid overdoing ormatting' and ensure that the
assignment is very clear' logical and proessional. /ay attention to grammar. +lear
and logical presentation is a ma=or challenge in assignment preparation. /reparing a
concise assignment is another ma=or challenge. Every part o the assignment should
someho4 add to the end result other4ise it is superluous and distracting. /age limit
or the assignment > !* pages

-hat&s included in the !* page limit,
# Executive summary
# Assignment "ody
# Ta"les
# 6iagrams
-hat&s excluded rom the !* page limit,
# Title page
# 9eerences
# Appendices