Task
An overseas institutional investor has approached your investment advisory firm seeking to invest AUD280 million in one of the big local bank’s ordinary shares. Your Chief Investment Officer has done some preliminary research on the seven banks financial returns and current financial position that has helped her to narrow the choices down to two banks. You have been given the assignment to analyse and prepare a report as to which of the two banks’ ordinary shares is better value for investment.
Based on your market research (qualitative and quantitative) on BENDIGO AND ADELAIDE BANK and SUNCORP GROUP LIMITED, you are required to prepare a report with your recommendation to the Chief Investment Officer, as to which of the companies’ ordinary shares is better value for investment. The overseas investor desires high returns and growth and is looking to park the funds for long term i.e. 10 years. In your report, include all the calculations and market information on which your recommendation is based.
Show all your calculations on the annexure. Limit your report between 1,500 to 2,000 words using financial theory and concepts.
