o Describe the change;
o Explain why you think this has happened, and/or describe what you think is happening to the company?
o Do you think this trend is good or bad? Say why.
2. TREND ANALYSIS 10 Marks
From the Trend Analysis above; identify and comment on any significant trends you can identify between 2014 and 2016 for EACH COMPANY SEPARATELY. (For example – has any item in the Income Statement of a company shown an upward or downward trend? Why have balances or certain types of inflows or outflows in the Cash Flow Statement been increasing or decreasing?) . For the changes you identify:
o Describe the change;
o Explain why you think this has happened, and/or describe what you think is happening to the company?
o Do you think this trend is good or bad? Say why.
Don’t forget: You can use Internet research or IBISWorld etc for both your vertical and trend analyses to try to explain what happened to the Companies and help to explain trends and movements. You can also examine the Non-financial and other information in the annual reports to see if you can identify and explain some of the trends. Good research will be rewarded in the marking.
3. RATIO ANALYSIS 9 Marks
Based on your calculations of the ratios above for both companies comment on the trends between 2014 and 2016 for EACH ratio for
• NETWORK TEN, and then
• NINE ENTERTAINMENT CO.
(i.e is the ratio better or worse in 2016 than it was in 2015 and/or 2014 for each company separately?; briefly explain what you think this means based on the definition of the ratio you included above)
4. YOUR INVESTMENT RECOMMENDATION: COMPARE THE TWO COMPANIES
Using the Vertical, Trend and Ratio Analyses above, prepare a strong argument for a potential investor recommending that they invest in EITHER Network Ten OR Nine Entertainment Co. Ensure you clearly support your recommendation with facts from your analyses above.
10 Marks
TASK NUMBER 3 – USE RESEARCH TO DEVELOP RECOMMENDATIONS (Maximum Words for this part – 500 words)
Examine the financial reports and any other financial information relevant to Network 10 and Nine Entertainment Co. for the time period since their 2016 annual reports were prepared (ie between 2015 and October 2016). You will need to use your research skills to find information that represents the financial performance of both companies since 2016 (eg Share price movements; business press reports, information available from share analysts; performance graphs etc), and answer the following question:
Previous answers to this question
This is a preview of an assignment submitted on our website by a student. If you need help with this question or any assignment help, click on the order button below and get started. We guarantee authentic, quality, 100% plagiarism free work or your money back.