Monash University Department of Banking and Finance BFF1001: Foundations of Finance Team Business Report Two key skills to your future career success are the ability to … 1) Work well in a team 2) Communicate your ideas and interact effectively in business and workplace meetings. To draw your attention to and emphasise the importance of these skills, students will be forming teams and, ideally, in the same team, perform two team-based assignments; the first was a Business Presentation, the second is this Business Report. The Business Report is where your team will learn how to conduct market research and prepare a formal business report for clients. Task details Team Size: 3-4 students only; the same team (and team number) as for your Business Presentation. Forming and management of teams is the sole responsibility of students and has been set out since week 1 in the Team Formation Instruction. The first part of the assessment is that students can demonstrate the social ability to communicate and interact with their classmates to form teams of their making and to optimise the teams they work with. Assessment Weight: 13% (calculated as a product of a staff member-awarded mark and peer assessment ratio) Learning objectives assessed: Objectives 1, 2 and 3 Due Date: Due in by 4.30pm (AEST) Monday 9 May 2022. Early submissions are permissible. Penalties for late lodgement: An assessment is late if it is submitted after the due date, or after the extended due date if an extension has been granted. A late penalty of 10% of the assessment total will be deducted for each late day or part thereof. Assessment Limits: Business report: 1,000 words with a 10% allowance. Cover/Title page, references, table of contents, list of figures/tables, bibliography, graphs and appendices are not counted in the word limit. The executive summary and conclusion are counted. Reports over or under the word limit allowance will be penalised -2 marks. Format & Referencing: Use the Business Report format, including Table of Contents, Executive Summary and Conclusion sections. Follow the formatting, structure, referencing styles outlined in the Q Manual. https://www.monash.edu/__data/assets/pdf_file/0005/506345/qmanual.pdf Referencing is not counted in the word limit. Beyond financial product websites used which need to be referenced by footnotes or endnotes to demonstrate required market research (otherwise – 4-mark penalty), there is minimal other referencing required unless financial media articles are used to support your recommendations. Coversheet: The business report is to be submitted with a Team Assignment Coversheet as the 1st page, signed by all group members. A copy is available to download in the Team Business Report section of Moodle. Coversheet conditions: ● Completed in full and signed by ALL members of the group (electronic signatures are accepted). ● The first student on the coversheet is to be the group representative. ● For digital submissions of assignments online, a signed copy of the cover sheet is to be used and inserted as the first page of the assignment document. As per Faculty policy, assignments with no coversheet or an incomplete/incorrect cover sheet are considered incomplete and will not markable. Assignments of a team size exceeding the limits will not be marked. The assignment is not considered submitted till the accompanying coversheet is received. Should the coversheet be received late, a late penalty will apply from the date of submission until the coversheet is received. Submission of coversheets separately to the assignment will be penalised by 10% per day late. Mode of submission: Via Moodle Assignment Upload link Assignment Submission located in the Team Business Report section of Moodle. Only one submission is allowed per team. Only the Team Representative will submit the assignment. The file format for submission is a pdf or Word document only. Submissions in any other formats will not be marked. Any file submission that is corrupt or not readable in Monash University computers (which run Windows) will not be marked. MAC submissions are not recommended for this reason, for the risk of incompatibility with markers’ PCs. Only the Team Representative will be able to submit the business report electronically via upload to Moodle using the Assignment Submission link. Should a file format be discovered as unmarkable, the marker will inform the team via email on the date of discovery. The team will email a markable file to the marker. A late penalty of 10% per late day from when the marker informs the team of an unmarkable assignment until when the team submits a markable assignment will be applied. Peer review submission: To incentivise responsible and professional behaviour in teamwork, all students must complete a peer assessment of all team members for the assignment. All peer assessment is anonymous. Failure to submit a complete and correct peer assessment for all your team members will result in the forfeit of all peer assessment awarded to you for the assignment. The due date to submit your peer review is 4.30pm (AEST) Monday 9 May 2022. The Peer Review task, which contains instructions on completion, is available for completion in the Team Assessment section of Moodle. Not submitting a peer review by the due date will incur a penalty of -25% (3.25 marks out of 13). Students who receive a 0 peer review mark from all team members will get a 0 mark for the team report. Peer reviews are anonymous, and students may see staff in consultation after results are released to find out how they performed in the peer review. Mark Calculation The overall score for each team assignment (13%) consists of a staff member-awarded component – maximum of 9.75 (75%) and a peer review component – maximum of 3.25 (25%) The contribution of your mark out of 13 to unit assessment will be calculated as follows: × . + × . Example: A team receive a staff member-awarded mark of 15 out of 20. ● Team member 1 receives an average of 8 out of 10 for peer review. Their mark is calculated as: Staff member awarded mark = 15/20*9.75=7.31 Peer review mark = 8/10*3.25 = 2.6 Total Score= 9.91 out of 13 ● Team member 2 receives an average of 6 out of 10 for peer review. Their mark is calculated as: Staff member awarded mark = 15/20*9.75=7.31 Peer review mark = 6/10*3.25 = 1.95 Total Score= 9.26 out of 13 ● Team member 3 does not contribute to the assessment and receives 0 out of 10 for peer review. Their mark is 0 due to non-contribution. ● Team member 4 does not submit a peer review. Their mark is calculated as: Staff member awarded mark = 15/20*9.75=7.31 Peer review mark = 0 Total Score= 7.31 out of 13 The assessment for each team assignment is calculated as staff member-awarded mark * peer review ratio Distribution of Team data: Every team will have a unique set of Assignment data that specifies the numbers and conditions to be used in your report. The numbers and conditions are randomly generated so that no teams will receive the same dataset. Team data have been emailed to the team representative after your team registration is completed. Using another Team’s Data is considered plagiarism and will result in a 0 mark. A description of the dataset is provided in the relevant section below. Generic assignment topic: Over the next two pages is the generic assignment topic. Special Consideration: All special consideration is handed externally to the unit and centrally by Business School student services. All information, eligibility criteria and link to apply for special consideration is available at … http://www.monash.edu/exams/changes/special-consideration It is strongly suggested that students see unit executives in consultation to make staff aware of their impending application and implications on assessment. The outcome of an application for special consideration should not be assumed. Any special consideration application not submitted through the above link is automatically invalid. Any student who has submitted a special consideration application for this assessment but submits the assessment anyway will void their special consideration application. Assessment Clarification: Students who seek further clarification about this assessment are encouraged to ask staff directly in class or to see staff during consultation. Email queries sent to the central subject email about this assessment will simply be directed back to this Unit Guide, Assignment Moodle documentation and to see staff in consultation if questions persist. Estimated return date: Week 12 start Feedback: General assignment feedback will be provided after the results are released. Students will be able to book a consultation for specific feedback during SWOTVAC consultation only. Feedback over email is not provided. Feedback for all within-semester assessments finishes at the end of SWOTVAC. Any queries about issues regarding within-semester assessment must be made by SWOTVAC end. No further inquiries about within-semester assessment can be made thereafter. Generic Assignment Topic Mr and Mrs Monash have hired your team of financial planners to consult on their intention to buy their next home. The time frame and house price are specified in your team data. Task 1: Find and present in a business report the cheapest (lowest interest rate) home loan in the market that meets Mr and Mrs Monash’s conditions specified in your team data. You are required to show evidence of your comparison. No evidence nor sourcing of the comparison will result in a -4 mark penalty. The requirement for evidence would be providing screenshots either in the main assignment body or in an appendix, comparing your recommended product with at least two other loan products that match all the conditions stated in your team data. Any screenshots are to be referenced by footnotes or endnotes. a) Applying their desired LVR, Calculate the amount Mr and Mrs Monash has to borrow. b) Calculate the deposit Mr and Mrs Monash must contribute in the future. c) Apply financial math to calculate the periodic loan repayment Mr and Mrs Monash must pay. (show your formula, substitution and working, missing financial math will result in a penalty of -3 marks) d) Assuming Mr and Mrs Monash’s income changes by the current rate of annual inflation, will they be able to afford the periodic loan repayment needed for the loan If not, by what nominal annual percentage will they have to grow their disposable income available to service the loan in the future when they buy their house If their future income is greater than the loan repayment required, by what percentage is their income greater than the loan payment required Task 2: Given the deposit Mr and Mrs Monash must pay in the future, they also task you with finding a good investment to help them save. Find and present in your business report the best (highest interest rate) term deposit available in the market that meets Mr and Mrs Monash’s conditions specified in your team data. You are required to show evidence of your comparison. No evidence nor sourcing of the comparison will result in a -4 mark penalty. The requirement for evidence would be providing screenshots either in the main assignment body or in an appendix, comparing your recommended product with at least two other term deposit products that match all the conditions stated in your team data. Any screenshots are to be referenced by footnotes or endnotes. a) Given what Mr and Mrs Monash have to invest today, apply financial math and calculate the future value of investing in your recommended term deposit today, for when Mr and Mrs Monash need to buy their house. (show your formula, substitution and working, missing financial math will result in a penalty of -1.5 marks) b) Do Mr. and Mrs. have enough now to pay for their deposit in the future If yes, by what percentage are they over their deposit. If not, with the term deposit investment, will they saved enough to pay for their deposit in the future If not, by what percentage are they under their deposit. Teams need to present the results of both tasks in a Business Report format to Mr and Mrs Monash. Team data description The data will provide you with the following information: 1. Mr and Mrs Monash’s house purchasing plan in terms of timing and house price “In ___ years time, Mr and Mrs Monash intend to buy a 3-bedroom house in Caulfield to live in. They intend to spend $_____ to buy their house.” 2. Mr and Mrs Monash’s conditions and needs of the loan: ● Financial Institution: “The loan has to be from a___________” Your team can be given one of the following institutions in your data: i. A non-bank financial institution: any lender that is neither in APRA’s register of ADIs (https://www.apra.gov.au/register-authorised-deposit-taking-institutions) nor a subsidiary of the Big Four banks. Do market research to identify subsidiaries of the Big Four banks. ii. A Credit Union, Building Society or Mutual Bank: any customer-owned financial institution listed on the APRAs register of ADIs (http://www.customerownedbanking.asn.au/). iii. A non-Big Four bank: any ADI listed on the APRAs register that is not a Credit Union, Building Society, Mutual Bank. A non-big 4 bank is not CBA, ANZ, Westpac or NAB. Subsidiaries of the Big Four like St George, Bank of Melbourne, BankWest are allowed in this category. Markers will check the websites of the institutions provided in the reference to ensure compliance with this requirement. ● Loan facility: “The loan has to have________facilities.” You can be given either the Offset facility or the Redraw facility in your data. ● Repayment frequency: “Mr and Mrs Monash wish to make________repayments” You can be given weekly or fortnightly, or monthly repayments in your data. ● The loan term: “They wish to borrow money for _________ years.” You can be given 20 years or 25 years, or 30 years in your data. ● All loans are fully amortising. ● Fixed or Variable rate: “They are interested in a______loan” You can be given a 3-year fixed-rate loan or a 5-year fixed-rate loan, or a variable rate loan in your data. ● LVR ratio: “Mr and Mrs Monash desire an LVR (Loan-to-value Ratio) of__________” The LVR can be 80% or 85% or 90% in your data. 3. Mr and Mrs Monash’s disposable income: “Today, Mr and Mrs Monash have $_______ of disposable income to pay for the loan repayment each period.” 4. Mr and Mrs Monash’s conditions and needs of the term deposit: ● Financial Institution: “The term deposit is to be from a___________” Your team can be given one of the following institutions in your data: i. A Credit Union, Building Society or Mutual Bank: any customer-owned financial institution listed on the APRAs register of ADIs (http://www.customerownedbanking.asn.au/). ii. A non-Big Four bank: any ADI listed on the APRAs register that is not a Credit Union, Building Society, Mutual Bank. A non-big 4 bank is not CBA, ANZ, Westpac or NAB. Subsidiaries of the Big Four like St George, Bank of Melbourne, BankWest are allowed in this category. Markers will check the websites of the institutions provided in the reference to ensure compliance with this requirement. ● The term of the deposit matures when they purchase the house in the future. ● Interest compounding frequency: “They require interest to be calculated and paid_______.” You can be given semi-annually, quarterly or monthly in your data. ● Mr and Mrs Monash’s investment today: “Mr and Mrs Monash have $_______ to invest today. How to start, Assignment Tips and Guidelines ● This assignment is an extension of your Applications of Finance PBL, where you were introduced to financial product comparison websites such as https://www.canstar.com.au/ ● Financial product research for the two Assignment Tasks can be found by entering “canstar home loans” and “canstar term deposits” into any search engine. ● It is up to students to then explore the filters on the right-hand margin of each product comparison engine to satisfy the terms and conditions required by Mr and Mrs Monash. Examples of the home loan filters are as follows… ● Important Note: Students can only use financial comparison and financial product websites to conduct their research. You are not allowed to contact actual industry participants such as lending officers of financial institutions or mortgage brokers about research for your assignment. Any complaint to Monash University will result in a penalty of -15 marks. Students are very welcome to see staff in consultation about advice relating to any part of this assessment and any part of the below marking rubric. The staff, however, will not read drafts of the assignment nor confirm whether calculations or conclusions drawn are correct. Marking Rubric To help guide students, the Marking Rubric of the Team Business Report is provided below: Marker Name: Team Number: Assessment Criteria Mark Use of correct Team Data Y = Yes, continue marking, N = No, 0 marks. Business Report Presentation Proper Report format used Clarity of presentation, structure, font and language used. / 3 Task 1 Market Research (5 marks) Appropriate product recommended All product conditions correctly applied and adhered to Research evidence shown Calculation (3 marks) All sub-tasks (a – d) answered Correct financial math shown Recommendation (2 marks) Correct conclusion drawn Appropriate financial advice made / 10 Task 2 Market Research (3.5 marks) Appropriate product recommended All product conditions correctly applied and adhered to Research evidence shown Calculation (1.5 marks) All sub-tasks (a – b) answered Correct financial math shown Recommendation (2 marks) Correct conclusion drawn Appropriate financial advice made / 7 The contribution to unit assessment will be 20 9.75% + 3.25% Total / 20
