FINC3600 财务简报

FINC3600 Finance in Practice S1 2023Project 1: Corporate Finance Brief

1.Project Learning Objectives

By completing this assignment you will:Learn to apply corporate finance concepts and techniques from past finance courses in arealistic businesssetting.Communicate complex financial reasoning to a diverse audience, both in writing and inperson.Gain insight into how corporate finance teams work and the effective operation ofcollaboration and peer review in a team environment. Gain insight into synthesising corporate finance theory and analysis of market data intocorporate finance advice.Work effectively in an online environment.Project Learning ActivitiesBy completing this project, you will:Integrate corporate finance theory with corporate finance practice.Work in a project setting with team members in a cooperative and collaborativefashion.Develop and peer review financial models. Develop and peer review executive briefing reports.Develop and peer review board level written presentations.Present and communicate in senior executive and board settings.

2.Unit Learning Outcomes

At the completion of this unit you should be able to:LO1. demonstrate and integrate finance knowledge, concepts, and principles in a range ofbusiness contexts.
LO2. identify, analyse, and solve business challenges reaching conclusions usingfundamental concepts,principles and knowledge from the finance arena. LO3. communicate effectively and professionally using a range of communication modes inbusiness contexts. LO4. recognise the need for, locate, evaluate and use information effectively. LO5. use different strategies to explore opportunities and construct new ideas, solutions, orproducts.LO6. evaluate issues relating to business ethics, sustainability and social responsibility inaddressing business challenges.LO7. make a positive contribution to a team-based structure. 2023 The University of Sydney Business School 3Groups
This assignment is a group activity. Students will beasked to form teams through Canvas (see Canvasannouncements for details and updates). These teams will be confirmed during the Week 3workshop. You will work in this group for the remainder of the semester (Weeks 3 through 12).RoleYou are performing the role of an independent external corporate finance advisory team whoseclient is the CFO of the company that you have selected to be the subject of this project.Task
Your task is to provide corporate finance advice to a public company board. You will be applying yourjudgement and knowledge of corporate finance theory to live market data to provide the board withinsights andrecommendations.It is recognised that you do not have the hands-on experience of corporate finance advice, but youshould use the case study to explore the experience of developing such advice. Please remember thatthe corporate board deals with substantial issues and that your analysis and communication shouldreflect this.
Your task has been broken down into the followingsteps:Steps When Assessment1 You will begin researching an assigned publicly listedcompany. Review and complete the Preliminary ResearchChecklist document available on Canvas. You will find theresources on the Researching Companies and relatedCanvas pages helpful. This allows for effective participationin a "brain storming" session with your team as assigned /confirmed in the Week 3 workshop.Week 22 Review the project brief and the Persuasive CommunicationHandout. Complete / finalize the Preliminary ResearchChecklist document available on Canvas to allow effectiveparticipation in "brain storming" in the workshops in Weeks3 and 4. Be sure that you have thoroughly reviewed theCanvas support materials and videos for each brief topic.Weeks 2,3,4
3 Team assignments are finalized. Select comparablecompanies as a team. Allocate topics / issues covered by thebrief to team members.
Weeks 3,4 Individual4 Develop and maintain a project plan. Weeks 3-7 Individual5 Analyse and evaluate the areas discussed in the project brief. Weeks 4,5 Individual? 2023 The University of Sydney Business School 46 Prepare team and individual CFO briefing papers in line withsuggested formats. Depending on team size you will eachindividually cover one of the five specific areas where advicehas been requested as well as collectively cover therequested advice on the group collective topic.? Group collective task: The group must undertake a teamanalysis of the scope of the company’s operations (Topic1). This team topic report is submitted by the group.? Individual member task: Each group member selects justone of the remaining topic issues and takes primaryresponsibility for that CFO brief. This individual topicreport is submitted individually.? Group involvement: Participate in the initialbrainstorming meeting and peer review of all CFO briefingcontent prior to submission. The scope of operationsreview is done (and submitted) as a team.Due Monday7 Based on your group’s six CFO briefs and revisiting youranalysis using the feedback you received, identify your mostimportant findings and recommendations to be presented tothe board. To the extent that recommendations are made,the broader corporate finance implications should beexplained (for example if a divestment were recommended,how would the realised funds be used and what are theimplications for capital structure, payout and debt policy?)Week 7 Individual8 Prepare the slides and appendices for the boardpresentation which summarises the most important findingsof your work including recommendations for future action.Due 09:00 am? 2023 The University of Sydney Business School 5

3.Task Assessment

Your task will be assessed as follows (given as a percent of the total unit marks):Participation CFO BriefingPaper
Slides for BoardIndividual 5.0% 5.0% 5.0% 15.0%Group 5.0% 3.0% 7.0% 15.0%Total 5.0% 10.0% 3.0% 12.0% 30.0%
Participation (team contributions) is 5% per project and will be reviewed and assessed by facilitatorsduring project workshops using the following scale:Did not contributeBased on the categories above you are allocated 0, 1, 2, or 3 points in the relevant meetings. Theseare then summed over the relevant weeks and scaled to an overall mark out of 5 points for projectparticipation.
For those teams working online, it is very important that you keep your video on and yourmicrophone live (mute only as needed). This makes it easier to engage effectively with your teammembers. It also means that the facilitators are aware of your engagement and contribution. Failureto have your camera turned on may mean that the facilitator is unable to recognize fully yourcontribution to the class session.Some things you can do to benefit your team and aid in your assessment when working withfacilitators are:? Ensuring that you are an active contributor? Asking insightful questions? Encouraging participation by others? Summing up key discussion points as appropriateWeek (USYD Number and
Commencement date)1,2Activities Updates / Assessments2 27/02/23 ? Please sign up for your teamensuring all members are1 In S1 2023 most of the workshops/streams will be delivered strictly in “on campus” (CC) mode while arrangements willexist to facilitate eligible offshore students to participate in remote/online (RE) mode. For those workshops/streamsthat delivered in RE mode, students will meet online through Zoom at the regular, scheduled times. Once formed,teams will be working in Zoom using breakout rooms. You will be moved to your breakout room at the start of eachZoom session as required.2 You might want to download the University’s Student Wall Calendar to help manage these dates.? 2023 The University of Sydney Business School 7
List of CompaniesThe following companies will be used for the case study in this semester.ASX Code Company Name GICS Sector Broker ResearchSTO Santos Energy MQG; BarrenjoeyEDV Endeavour Group Consumer Staples MQG; BarrenjoeyALL Aristocrat Consumer Discretionary MQG; BarrenjoeyREH Reece Industrials MQG; BarrenjoeySHL Sonic Healthcare Health Care MQG; Barrenjoey*
In Week 2 you will be tentatively allocated a company to begin to study and to complete thePreliminary Research Checklist.In Week 3 your selected team allocation will be confirmed before the class meeting. In anticipationof this team meeting all team members should ensure that (before the Week 3 workshop) they havereviewed and completed the Preliminary Research Checklist document available on Canvas so thatthey can participate fully in initial brainstorming. You will also be working with your team on assigningresponsibility for topic sections of the CFO brief.We are grateful to Macquarie Group (MQG) and Barrenjoey Markets for providing research regarding thecompanies listed above. Please note that these research reports have been provided for the requestededucational purpose only. They are ‘historical’ in nature and should not in any way be viewed as entailing theprovision of advice and ‘current’ research that students may look to trade on. Please refer to importantdisclosures at the end of the reports. All copying, redistribution, retransmission, republication and anyother unauthorized dissemination or use of the contents of the report are prohibited.* Please note the following specific disclaimer underscored by Barrenjoey: “These research reports havebeen produced by Barrenjoey Markets Pty Limited, ABN 66 636 976 059 (“Barrenjoey Markets”) and isprovided to the University of Sydney for educational use only and specifically for use by students enrolled inFINC3600. Content of the reports is not to be shared in whole or in part by any student or University ofSydney representative outside of the unit of study. Representatives of Barrenjoey Markets are not to becontacted in relation to these research reports.”It is 1 March 2023. Your team was approached by the CFO of the selected ASX listed company toprovide corporate finance advice. The advice is sought ahead of the company’s annual strategymeeting where a range of initiatives will be discussed by senior management and the board.The CFO has emphasized the importance of this advice being independent and hence your team waschosen in preference to a number of full-service investment banks who have traditionally providedtransaction and debt related services to the company. The CFO has also explicitly noted that youranalysis must be of material and consequential issues. While you are not expected to performdetailed capital budgeting analysis you are expected to provide some initial, prospective estimatesof the costs and benefits of your recommendations.It is anticipated that the strategy meeting will review the current scope of the company’s operationsand, in particular, consider the potential for divestments and/or acquisitions. However, the CFOrealises that there are a number of strategic issues facing the company at this time. Hence, the CFOis concerned that any future restructuring be considered in the context of a rigorous framework andhence has requested your team provide detailed advice on several key corporate finance topics:1. Scope of company’s operations (potential divestments and acquisitions) – team analysis2. WACC for the main business activity3. Environmental, social and governance (ESG)4. Capital structureCompare and contrast to three-to-five comparable companies whereappropriate.You should discuss your company’s leverage and liquidity position in the following context:? You should relate all elements of this analysis to the primary strategic recommendation(s)for your company.? Is the current term structure of debt and the quantum of debt appropriate given yourcompany’s operations?? Based on the primary strategic recommendation(s) for your company, how will the debtstructure of your company change?? Will any additional funding be required to execute your primary recommendation? If so,how and where would you complete this funding? How much would be required?? How will proceeds from any disposals be used?? Will excess liquidity be distributed to shareholders? If so, how?Corporate finance topic 6 – Payout policy (individual brief)? 2023 The University of Sydney Business School 13To consider future payout policy (i.e. the distribution of post-tax profits by way of dividends orbuybacks), the company wants you to provide summarised advice in relation to the following points:? Based on academic theory and the specific characteristics of the company, what are the keyfactors that should be considered in setting future payout policy (and the mix of dividendsand buybacks)?? How does the historical dividend and buyback policy of the company compare to its peercompanies? Using three to five comparable companies provide analysis of:? Dividend as a percentage of post-tax profit? Buybacks as a percentage post-tax profit? Broad factors other than post tax-profit, which appear to have driven share buybacks (e.g.distribution of asset sale proceeds)? Extent of franking of dividends (Australian comparables only)? What major insights does the above comparable analysis provide in relation to the futurepayout policy of the company?? Based on the above analysis, what is your brief recommendation in relation to the futurepayout policy of the company?Rules and Guidelines
You may assume the current date is 1 March 2023. Advice should be based on financial statementsas based on the most recent annual or interim report and publicly available information – includingASX announcements – up to 1 Marcgh 2023.Kick-starting your projectPrior to the first workshop, it is essential that every team member performs preliminary research ontheir selected company, so they can contribute fully to the group brainstorming sessions in Weeks 3and 4. Please review and follow the Preliminary Research Checklist document available on Canvas.CFO briefing paperIn preparing for each of the CFO briefing paper, please be aware of the following:? The CFO briefing papers should be in portrait PDF format.? The CFO briefing papers must be at most two pages. No more than one page of text (e.g.bullet points) and at most one page of clearly presented supporting charts and tables,including references. Do not provide any appendices. The report should have a minimum fontsize of 12 with standard spacing as has been used in this project brief.? All CFO briefing papers need to be submitted through Canvas by 9:00 am Monday 27/03/2023(Week 6). The individual topic reports are to be submitted on an individual basis. The groupsummary document is to be submitted by the nominated group contact person on behalf ofthe entire team. Hence, there will be 6 documents submitted from a team of 5 persons.? 2023 The University of Sydney Business School
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