10 Jun 7-Eleven Malaysia Holding Berhad’s annual report for the fiscal year ending 2021 is available at https://www.7eleven.com.my/financial-reports. (At least two ye
Question 1 (50 marks)
7-Eleven Malaysia Holding Berhad's annual report for the fiscal year ending 2021 is available at https://www.7eleven.com.my/financial-reports. (At least two years of comparable financial statements are required.)
a) Assess 7-Eleven’s financial position for year 2020 and 2021 according to
i) liquidity position, and how the liquidity position has changed over time from 2020 to 2021. (6 marks)
ii) asset management position, and how its asset management efficiency has changed over time. (6 marks)
iii) debt management position, and how its debt management has changed over time. (6 marks)
iv) profitability ratios, and how its profitability position has changed over time. (6 marks)
v) market value ratios, and how its valuation has changed over time. (6 marks)
b) Calculate 7-Eleven’s ROE as well as the industry average ROE, using the DuPont equation. From this analysis, how does 7-Eleven’s financial position. (10 marks)
c) Write your opinion on what you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold. No calculations are necessary. Think about which ratios would be affected by changes in these two accounts (10 marks)
QUESTION 2 (25 MARKS)
Explain whether the following instruments are examples of money market or capital market securities. (25 marks)
a) Malaysian Treasury Bills (MTB)
b) Safura Berhad corporate bonds
c) AM Fujiya Berhad Common stocks
d) AEON CO (M) Berhad Preferred stocks
e) Bank Negara Monetary Notes-i
BBF201/03 Introduction to Financial Management Assignment 1
1
May 2022 Semester
ASSIGNMENT 1 (25%)
BBF201/03 INTRODUCTION TO FINANCIAL MANAGEMENT
Instructions:
1. Assignment 1 contains ONE (1) section and you are required to answer ALL
questions in each section.
2. The assignment should be typed using ARIAL, font size 12 and 1.5 spacing.
3. The deadline for the submission of Assignment 1 is 11 Jun 2022 11:59:00
PM. A softcopy should be submitted via Online Assignment Submission
System.
4. Students are highly encouraged to passage their Assignment to the Turnitin
system before submission, to encourage honest academic writing and it is not
mandatory except for Project courses.
5. Students will be required to use the “TMA Declaration form” (T-DF) as the cover
page of TMAs submission.
BBF201/03 Introduction to Financial Management Assignment 1
2
Part A (100 Marks)
Answer ALL questions in answer book.
QUESTION 1 (50 MARKS)
7-Eleven Malaysia Holding Berhad's annual report for the fiscal year ending 2021 is
available at https://www.7eleven.com.my/financial-reports. (At least two years of
comparable financial statements are required.)
a) Assess 7-Eleven’s financial position for year 2020 and 2021 according to
i) liquidity position, and how the liquidity position has changed over time from
2020 to 2021.
(6 marks)
ii) asset management position, and how its asset management efficiency has
changed over time.
(6 marks)
iii) debt management position, and how its debt management has changed
over time.
(6 marks)
iv) profitability ratios, and how its profitability position has changed over time.
(6 marks)
v) market value ratios, and how its valuation has changed over time.
(6 marks)
BBF201/03 Introduction to Financial Management Assignment 1
3
b) Calculate 7-Eleven’s ROE as well as the industry average ROE, using the
DuPont equation. From this analysis, how does 7-Eleven’s financial position.
(10 marks)
c) Write your opinion on what you think would happen to its ratios if the company
initiated cost-cutting measures that allowed it to hold lower levels of inventory
and substantially decreased the cost of goods sold. No calculations are
necessary. Think about which ratios would be affected by changes in these two
accounts.
(10 marks)
QUESTION 2 (25 MARKS)
Explain whether the following instruments are examples of money market or capital
market securities.
a) Malaysian Treasury Bills (MTB)
b) Safura Berhad corporate bonds
c) AM Fujiya Berhad Common stocks
d) AEON CO (M) Berhad Preferred stocks
e) Bank Negara Monetary Notes-i
(25 marks)
BBF201/03 Introduction to Financial Management Assignment 1
4
QUESTION 3 (25 MARKS)
a) Elaborate the importance of financial management to all managers.
(5 marks)
b) Explain three (3) advantages of the organisational forms a company might have
as it evolves from a start-up to a major corporation.
(6 marks)
c) Justify your position on what managers' primary goal should be.
(Hint: your response should centre on these three dimensions.)
a. Do businesses have any societal responsibilities?
b. Is stock price maximisation beneficial or detrimental to society?
c. Should businesses act ethically?
(11 marks)
d) Elaborate the three aspects of cash flows affect the value of any investment.
(3 marks)
END OF ASSIGNMENT 1
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