Corporate Finance (BAFI1059) S2 2020 Page 1 of 9
School of Economics, Finance and Marketing
Master of Finance
BAFI 1059 – Corporate Finance
PROJECT (GROUP ASSIGNMENT)
Semester 2 – 2020
Marks
• This assignment is marked out of 100 and contributes 40% to the overall assessments.
Category: Accounting Assignment Project
CASELET 1F
SEMESTER 2
A.Y. 2019-2020
STRATEGIC COST MANAGEMENT
Jerald James G. Montgomery, CPA
If you need help, please chat with us by the Chat Box.
1 | P a g e
Pathway: International Year 1 – Business
Module title: Business Accounting
Assessment 1 – 2019/2020
Module Aims: Aims to focus on
Basic financial statements: from interpretation to analysis
The usefulness of these statements to aid management decisions
Techniques used for costing and pricing decisions
Some significant effort, generally organized and communicated well but with significant
Resources ACC320 Assignment – Report (Literature Review) Resources and Checklist There is a Powerpoint to help you get started on the assignment in Blackboard (BB): Assessment: Task 2 – Report (literature Review) Getting started on the Research Assignment A
ACC320 Contemporary Accounting Issues Assignment – Rubric
Categories
pricing
QUESTION9 (b)
To fund these payments the fund manager must invest in the four bonds described in QUESTION 8. Assume that she is trying to minimize transaction costs;use the figures in QUESTION 8 to write the equations that would need to be satisfied to immunize the annuity described in this question. Note that the fund manager is concerned that the application of these conditions could result in only one or two different types of bonds being held. As this is considered risky she introduces a diversification condition whereby she must hold a minimum of five of each of B1,B2,B3 and B4. Note; these conditios will need to be considered in your equations.
ACCT2288:Assignment–Semester1,2019
ThisassignmentrequiresyoutodevelopandpresentacompliantStatementofAdvice(SOA)basedonthe
casestudyprovided.
Youarerequiredtoreadcarefullytheassignment(CaseStudy),whichrequiresthe
preparationandsubmissionofacompliantStatementofAdvice(SOA)andaddressthequestionsand
tasksrelatingtothekeycaseissues,theclients’goalsandobjectives,theimpactofnewfinancialplanning
legislation,preparationofarisktolerancequestionnaireandclientquestionnaire.
YouwillneedtosubmityourassignmentthroughTURNITINbefore11:00PM(AustralianEastern
StandardTime)ontheduedateofMonday,13May2019.
CASESTUDY
YouareaCertifiedFinancialPlanner(CFP)whohasbeenapproachedbyamarriedcoupleseekingadvice
withregardtotheirpre-retirementplanning.
RichardandRenukaBRADLEYhaveneverpreviouslyengagedtheservicesofafinancialplanner,butnow
thattheyintendtoretireinaround5-6years,theyfeelthattheyshouldseekprofessionalguidance.They
havetoldyouthatuponretirement,theywouldliketocontinuelivingintheircurrenthomeforaslongas
theycanpracticallyaffordtodoso.Giventhatneitherofthemhasanyhealthissues,theyfeelthattheycan
liveintheircurrenthomeformanyyearsintothefuture.
RichardandRenukaalsoownaninvestmentproperty,currentlyworth$400,000,andwithamortgageof
$185,000onaninterestonlyloan.TheyacquiredtheinvestmentpropertyinNovember2003,afterattending
apropertyinvestmentseminar.Overall,theyhavebeensatisfiedwiththeirinvestmentpropertyinvestment,
andrealizethatinretirementthattherentcouldprovideusefulincomeforthem.However,theyhave
indicatedtoyouthatifyouhavesomeotherrecommendationofinvestmenttotaketheplaceofthe
investmentproperty,theyarehappytoconsiderthatalternativerecommendation.Inanycase,theywishto
commenceretirementfreeofanymortgage,andseekyouradvice.
DetailsoftheircircumstancesaresetoutintheClientDataFormintheattacheddocument.
REQUIREMENTS
YouarerequiredtoprepareandpresentacompliantStatementofAdvicecontainingyourrecommendations
toRichardandRenuka.
Asthisisafictionalcasestudy,youmaymakereasonableassumptionstocompletethedetailsofthe
clients’situation,butyoushouldnotalteranyoftheinformationprovidedinthecasestudy.
Inmakingassumptions,theyshouldbeREASONABLEassumptionsandtheyshouldbeconsistentwith
theinformationalreadyprovided.Thereistobeno“frontendloading”withassumptionstomakean
outcomemoreachievable,thatis,DONOTmakeassumptionsaboutwindfallssuchaslotterywinsor
inheritances(apartfromthe$275,000inheritancethatRenukaistoreceiveshortlyasalreadydetailed
intheClientDataForm).
YourassignmentsubmissionshouldincludealistofALLassumptionsthatyouhaveincorporated 2
Manystudentswillnotethatthiscasestudyhasmanysimilaritiestothecasestudyassignmentthatyou
mayhaveundertakeninBAFI2075/FNP21–Superannuation&RetirementPlanning.Youarefreeto
applyrecommendationsfromthatearlierassignmentasthebasisofyourrecommendationsinthis
currentassignment.Theemphasisinthiscurrentassignmentistheproductionofaproperlydrafted
SOA.Sowhileyourrecommendationstotheclientareaveryimportantelement,markingwillalso
focusonthestructureoftheSOA.(Amarkingguideisincludedasthefinalpageofthisdocument.)
YourSOAshouldincludethefollowingasaminimum:
AcompliantSOAcoverpage,incorporatingallASICrequirements
Anexecutivesummarycoveringnomorethan2pages
Cashflowsandbalancesheet–BEFOREandAFTERrecommendations
Recommendations(Shouldbeatleastthree)
Anticipatedoutcomes–Howitplacestheclientinabetterposition
Appropriatedisclosuresanddisclaimers,includingdetailsofyourremuneration
ActiontoProceed
AuthoritytoProceed
NOTE:Giventhattheemphasisonthiscasestudyisonpre-retirementplanning,itisacceptable,ifyou
choose,toadviseyourclientsthatyouwillintroducethemtoanotherspecialistprofessionalifthereisa
needforthemtohaveanyinsurance.However,itisveryimportantthatifyouidentifyanyinsuranceneeds
aspartofdevelopingyourrecommendationsthatyouexplainthoseinsuranceneedsinyourSOAandthe
type/sofinsurancesrequiredbeforethenofferingthemareferral.
GUIDE:Whilstthereisnowordlimitorpagelimitonyoursubmission,tobeaneffectiveSOA,itis
expectedthatmostsubmissionswillhaveapagecountof15-20pages,withupto6additionalpagesas
appendicesifrequired.PleaseDONOTsubmitanyinvestmentproductsheetsorProductDisclosure
Statementswithyourassignment,eventhoughthatisarequirementwithSOAsinreallifecircumstances.
Submissionswhichsignificantlyexceedthisguidemaybeconsideredtobenot“clear,conciseand
effective”andwillaccordinglysuffersignificantmarkingpenalties.
Basedonthiscasestudy,studentsarerequiredtosubmitacompliantStatementofAdvice.Itisimportant
thatalllegalandprofessionalrequirementsandexpectedstandardsmustbefollowed.Thisisthecapstone
courseinFinancialPlanningandaveryhighstandardisrequiredandyouwillneedtoattainan
advancedlevelofdetailinyourStatementofAdviceinordertopassthiscourse.Youareexpectedtodemonstrateyoureffectivecommunicationskillsandtechnicalknowledgeby
presentingacomprehensiveSOAthatisfocusedonclientneedsandinlinewithethical,professional
andlegalexpectationsandrequirements.
YourSOAwillbeassessednotonlyfromclientandcomplianceperspectives,butalsoinlinewiththe
expectedstandardsandcourseguidelines,whicharedetailedintheCourseProfile.Althoughyouare
requiredtoprepareacomplyingdocument,youneedtobeawarethatyourfinalassignmentmustalsomeet
theveryhighexpectationsofthiscapstonecourse.PleaseusetaxrulesandratesasappliesfortheFinancial
Year2018-2019.
Toachieveapasslevel,youwillneedtoattainanadvancedlevelofdetailwhenwritingyourcomprehensive
SOA.StudentsareexpectedtodevotesufficienttimetothepreparationofaStatementofAdvicewhich
encompassesboth,theessentialelementsandstructuralelements,coveredthroughoutthecoursework
modules.Youareexpectedtoproduceanoriginalassignmentofahighacademicstandard.Remember
thatclearandconcisewritingwillberewarded,andpenaltiesapplyforpoorpresentation,and
spelling,grammarandpunctuationerrors.
WORKINTEGRATEDLEARNING:FeedbackfromaFinancialPlanner(Advisor)
YouarerequiredtocontactalicensedFinancialPlannerwhoiswillingtospendupto1½hourswithyou.
Youaretoprovidetheplannerwithacopyofyourreport,presentyourStatementofAdvice(including
yourrecommendation)tothePlannerandseekhis/herfeedbackonboth,thetechnicalqualityofyour
presentationandyourpresentationskills.Afeedbacksheetisprovidedforthispurpose.AletterfromRMIT
isprovidedtoassistinfacilitatingthismeeting.Thepresentationworksbestwhentheadviseradoptsthe
roleofyourclients.
ThisisaWIL(WorkIntegratedLearning)requirementforRG146complianceandmustbecompleted–
pleaseseeassignmenttipsforfindinganadviser.Youarerequiredtosubmitthefinancialplanner’s
feedbacksheetformifyouhaveusedit.Alternatively,youcouldeitherprovidedetailsofthefinancial
planner(advisor)youhavesolicitedafeedbackfrominyourassignment.Allthesedocumentsshouldbe
submittedontheduedateonthecoursewebsite.Yourassignmentandotherformsmustbesubmittedonline.
Thisassignmentisworth50%ofyourfinalmarks(theassignmentismarkedoutof100andscaledback
to50%).
Pleasespendsometimeonthedetailedmarkingguideprovidedtoyouwithinthisdocument.
International Finance
Part 1: Currency Forecasting and Investment Project
INTRODUCTION: