FINM7403代做、Python，Java程序代写

日期：2024-01-10 09:17

FINM7403 Portfolio Management

Business School, The University of Queensland

Project Task Document

Project Title: Valuation of Stocks in High-Emission Industries

Summer Semester

January- February 2024

Submission Due: 22 January 2024 at 17:00 [Brisbane Time, AEST]

This project has a total mark of 25. It contributes 25% to your final grade.

This project is to be completed and submitted individually. Students must complete tasks in

Parts A and B of this task sheet. A guide for students then follows the project tasks. Lastly, a

grading rubric for the project is presented at the end of this document. [7 pages in total]

Part A. As an equity security analyst, your current task is to estimate the fair value of an

Australian stock in operation as of January 2024.

Stock selection criteria: 1. The stock must be a constituent of the ASX200 index; 2.

the firm should operate in high carbon emission industries, such as companies of fossil

fuel, mining, steel, aluminum, cement, fertilizer manufacturing, or in the

transportation sector.

[Note: You can select one stock that meets the criteria, except for Qantas and BHP.]

Approach: You have decided to use a Free Cash Flow to the Firm (FCFF) model and a

Multiples-based approach, and then assign a different weight for each model result to

determine the stock  s intrinsic value.

Source of data: Capital IQ and additional resources, including the respective

company  s website.

For the FCFF approach, you agree with the annual consensus forecasts (e.g., earnings, free

cash flows) for the chosen stock over the next three (or four) fiscal years in Capital IQ.

Beyond this time, you will derive estimates of long-term growth rates. Use the Capital

Asset Pricing Model to estimate the equity cost of capital. Assume a risk-free rate of

4.38% and a market risk premium of 5.99%.

For the Multiples-based approach, you will select a multiple for your stock and its

comparable stocks (at least two) and justify your choices of multiples as well as

comparables.

Requirement: In your written report to the fund manager, you are expected to incorporate the

following:

1. Describe the valuation process for each method so one can replicate the analysis.

2. Justify your primary considerations for valuation.

3. Report your valuation results and provide an investment recommendation (buy, sell,

or hold) based on your analysis.

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Part B. Several days after handing in the report in Part A, your fund manager requests that

you revise the FCFF stock valuation by considering his predicted early introduction of a

carbon tax on Scope 1 emissions (priced by per ton of greenhouse gas). The revision involves

several key considerations for your FCFF valuation, including a. projections of sales revenue

and operating costs, b. capital expenditures (including Research and development expenses),

c. taxation, and d. cost of capital.

Requirements: Based on the firm  s environmental performance disclosures, write a response

to discuss the above aspects and potential directional impacts on your stock valuation

recommendation and support your analysis with evidence and relevant references.

Guide for students

Capital IQ access: Students could register with your UQ email address to access

Capital IQ (e.g., s1234567@student.uq.edu.au, replacing   1234567   with your student

ID). Important: Avoid postponing this task to the last minute, as account registration

approvals for online access may require a day or two.

Write and cite: Read the information contained in this link. Write, cite, and submit -

Library - University of Queensland (uq.edu.au). APA, Chicago, or Harvard

referencing style is acceptable.

Word limit: 1500 words (Parts A and B). The word count excludes footnotes, tables,

figures, references, and appendixes.

Appendix: Include your main tables within the main body of the report. If you wish to

attach Excel files to show your work, please copy and paste them into the WORD

document  s Appendix.

Formatting: Include a title page in your submission file. Your project title page must

indicate the project name (e.g., FINM7403 Project) with your name and student ID

number.

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Your documents should be typed in Times New Roman font, size 12. The project

should be 1.5 lines spaced. Type the course code and your student number on each

page of your submission file using the Header. Insert the page number in the Footer.

Submit for grading:

Ensure that the entire document, Appendix included, is successfully converted into a

single PDF file before submission.

SAVE YOUR TITLE PAGE, PARTS A AND B (with Appendix if any) AS ONE

PDF FILE before clicking on the relevant link to upload your project to the portal of

Assessment ? Assessment task 2: Project ? FINM7403 Project Submission for

Grading on Blackboard. Although the project can be submitted up to five times to

the portal, only the last submission before the due date will be graded. If you are not

familiar with the submission process, please visit this link before submission.

Other instructions: Teaching staff will not answer any questions regarding the project,

as this gives students an unfair advantage over others. However, you may post any

questions to the  Discussion Board  on Blackboard; such questions will be answered if

appropriate.