MAA103 - Accounting for Decision Making Video Presentation
- Subject Code :
MAA103
- University :
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SCENARIO
- You are a financial advisor working for MacPac Bank.
- Your client, Mark, just received a significant bonus from his employer and now wants to invest in one of the two companies he considers promising. He has exactly $15,000 to invest in shares.
Company 1 Company 1 is a multibillion-dollar Australian retailer that sells electronics, as well as major and small appliances. The business has 315 stores in Australia, New Zealand, and Asia. With the current climate that encourages people to work from home and stay at home, the business is reaping benefits from selling home electronics for work and entertainment.
The share price as of 30 June 2021 was $42.69, and now it is trading between $51 and $54.
Company 2 Company 2 is a multibillion-dollar Australian supermarket, retail, and consumer services chain. It specialises in groceries (vegetables, fruit, meat, packaged foods, etc.), but also sells health and beauty products, homeware products, pet supplies, and stationery.
The share price as of 30 June 2021 was $37.28. It is currently trading between $42 and $43.
Mark is seeking your advice as to which company you consider to be the better investment, and why.
- Your group will need to provide ratio analysis for both companies and advise which company is performing better financially along with any other relevant factors.
- This assignment can be done in a group or individually.
