THE COUNCIL OF COMMUNITY COLLEGES OF JAMAICA

 

BACHELOR’S DEGREE COURSEWORK

 

SEMESTER II – JANUARY 2022

 

 

PROGRAMME: BUSINESS ADMINISTRATION
   
COURSE NAME: FINANCIAL MARKET ANALYSIS
CODE: ACCT3602
YEAR GROUP: FOUR
DUE DATE:

 

APRIL 21, 2022
UNIT:

 

2 – 3
ASSESSMENT TYPE: COURSEWORK ASSIGNMENT – REPORT (15%)

 

 

 

INSTRUCTION:

 

1. This is an individual assignment.

 

2. A hard copy MUST be presented to the lecturer on the due date.

 

3. The APA format MUST be maintained, and a declaration of authorship must be made.

 

4. This assignment represents 15% of final grade

 

 

 

 

 

You are a Financial Analyst that has been appointed to lead a team in the production of a report to some potential investors regarding participating in the financial market. In teams of FOUR

(4), you are required to provide information on the following sections:

 

 

Section A – These companies currently listed on the Jamaica Stock Exchange (JSE) to conduct an analysis.

NOTE : Unit four (4) has the calculations/formula

 

Salada Foods Ltd and Seprod Ltd

 

The analysis will include the following : A brief overview of the companies selected. (5 marks)

· Daily recordings of the trade volume, opening and closing price, percentage change in price and whether the stock advance, decline or traded firm for each company over a two

week period, beginning March 14 – 25, 2022. (20 marks)

 

· Use the prices recorded to form an index for each company, then construct the following:

· A price-weighted index for the two stocks and compute the percentage changes in the index for period 1 (Week 1) and period 2 (Week 2

· A value-weighted index for the two stocks and compute the percentage changes in the index for period 1 (Week 1) and period 2 (Week 2)

· Explain the factors that you believe may have affected the share prices on the market for both companies during period 1 and 2 for example, impact on share price, inflation. Interest rate.

 

 

Section B– Financial Viability Unit three (3)

Assess the financial viability of the two companies given above by performing a company and security analysis to determine if the stocks are over-valued or under-valued based on information gathered from:

 

a) The stock’s price-earnings ratio (5 marks)

b) The Price-Earnings Growth ratio (10 marks)

c) The interest rate of the country (5 marks)

d) Market capitalization to GDP

Note: What is the market capitalization of Jamaica stock exchange as it is now. If you cannot find information on 2022 use the near year. Research what is the GDP of Jamaica to do the calculations.

Formula for calculation: Market capitalization divided by Jamaica GDP.

e) The company’s activities, and revenues and profits generated.

NOTE: Review the company’s earning per shares. Indicate what is happening in each company’s generated revenue

 

 

(Total 100 marks)

 

2021/2022- Semester 2

Financial Market Analysis

2021/2022- Semester 2

Financial Market Analysis

2021/2022- Semester 2

Financial Market Analysis