Australian Securities Exchange (ASX).

This assignment requires you to reflect upon what you have learnt during the course about the theory
investors respond to the release of announcements by publicly listed companies. Furthermore, you will
be required to undertake some empirical calculations to test that theory.
For this task your group is required to select ONE (1) company listed on the Australian Securities
Exchange (ASX). The company chosen by your group must have been listed on the ASX for a period
of not less than six years.
Once your group has chosen a suitable company you are then required to undertake the following tasks.

Required:
1. Identify FOUR (4) public announcements made by your chosen company within the period 30
June 2018 through to 30 June 2019. The announcements should be ones that would be expected
to have an impact upon the company’s share price following the release of the information.
Provide a brief summary of key content of each of those announcements and explain why you
think each announcement should have an impact upon the company’s share price.
2. Using data from your company calculate its beta. Using suitable academic literature, justify your
data choices with respect to time horizon, measurement interval, measurement of returns, and
market index.
3. Using the beta value you have calculated, apply the Capital Asset Pricing Model (CAPM) to
determine the daily abnormal returns for a period of THREE (3) days before and FIVE (5) days
after each of your chosen company announcements.
4. Analyse the response of the market to the release of these announcements with reference to the
efficient market hypothesis. Do the results indicate the information contained in the
announcements has been swiftly incorporated into the share price? Ensure you support your
conclusions with reference to appropriate academic literature.

FINC 5001 Capital Markets and Corporate Finance
Additional Requirement
Your report MUST include a sample of the data you have used in your calculations together with a
copy of the spreadsheet with the formulas rather than the values on the cells. These must be in the
appendix of the assignment.
Assessment Criteria
1. Conforming with instructions (e.g. word length, font, other instructions)
2. Presentation, communication & style (written)
3. Clarity of expression (incl. accuracy, spelling, grammar, punctuation)
4. Referencing
5. Use of literature/ Knowledge of theory
6. Data/information gathering/processing
7. Conclusions
8. Analysis
9. Problem solving
10. Originality
Your assignment is heavily weighted towards research into relevant academic literature. Ensure that
you refer to the source documents to justify selection of variables and in your discussion of the corporate
announcements.

 

Formative Feedback
To give you some early feedback on how your group is proceeding in the assessment task, you will
be given the opportunity to submit your group’s response to part ONE (1) of the report on Friday 11
October 2019. Your stream lecturer will then provide you with feedback about whether the events you
have chosen and your explanation of the likely impact of each announcement is reasonable. Please
note this submission is not going to be MARKED. Only the final report will be allocated a grade. The
goal of this feedback is to help you address any major problems that have arisen in your assignment
and suggest possible areas of improvement. You will also have an opportunity to reflect upon the
effectiveness of your group dynamic using Sparkplus.

FINC 5001 Capital Markets and Corporate Finance
Formatting and Presentation:
1. The assignment should be no more than 12 pages, with 1.5 line spacing and size 12 Times New
Roman or Arial Font. Please number the pages of your report. Marks will be reduced by 10% for
each page you exceed the page limit. Hence your mark will be reduced to zero if the assignment
exceeds 20 pages. Brevity and conciseness are key ingredients of a highly successful report.
You will be penalised for inappropriate formatting.
2. Make sure you use proper referencing in your assignment. All assignments must include a list of
references in academic form using the APA method. The APA referencing style can be found
here: https://libguides.library.usyd.edu.au/c.php?g=508212&p=3476096. You will be penalised
if you use inappropriate referencing.
3. Pay particular attention to presentation. A component of your mark will be based on presentation.
Avoid overdoing formatting, and ensure that the assignment is very clear, logical and
professional. Pay attention to grammar. Clear and logical presentation is a major challenge in
assignment preparation. Preparing a concise assignment is another major challenge. Every part
of the assignment should somehow add to the end result – determining an appropriate share
price – otherwise it is superfluous and distracting.
4. The report must be submitted as a PDF document. You must submit the report electronically via
the Turnitin link on canvas.
Page limit for assignment – 12 pages

What’s included in the 12-page limit?
– Assignment body
– Tables
– Diagrams
What’s excluded from the 12-page limit?
– Executive summary
– Title page
– Table of contents
– Reference List
– Appendices