Recent Question/Assignment

You need to answer the following questions:
(a) Using five latest annual reports up to 31 December 2019 perform a comparative financial statement analysis of the two allocated companies based on determining the following financial ratios: Return on Equity (ROE), Return on Assets (ROA), Debt equity ratio, Debt ratio, Earnings per share (EPS), Dividend per share (DPS), Didvidend Payout ratio and market to book
value (on Balance Sheet date). (12 marks)
(b) For the period 2 January 2020 to 30 September 2020, collect daily closing stock prices of the two companies you were allocated. Using this data and any other relevant data determine,
(i) the beta of the two companies. (5 marks)
(ii) the standard deviation of the stock returns of the companies for the period 2 January
2020 to 30 September 2020. (5 marks)
(iii) the cost of equity of the two firms using the Captal Asset Pricing Model (CAPM) (5 marks)