Case study – Harvey Norman (1990 words maximum)
This assignment has a 50% weighting in your overall mark for this unit and focuses on content from Weeks 4, 5 and 6. The assignment will be marked out of 50. It consists of two main tasks and marks will be allocated for each task as indicated in the rubric at the end of this document. Your total assignment submission should not exceed 2000 words (excluding Task 2 appendix showing cash flow details and an assignment reference list).
Task1: Capital Structure and Payout Policy Analysis (20marks total)
For this task, you are required to describe and evaluate the capital structure and payout policies of your case study company (chosen for Case Study 1). For each policy area, use the following broad approach:
1.Describe the policy (which may or may not be explicit) based on historical annual data.
2.Evaluate the policy, drawing on theory and practical considerations covered in the unit and applied to the company’s current characteristics and situation. Your analysis will be mostly qualitative, but some basic quantitative measures should be used in describing the company’s policies. Marks for this task will be awarded as per the Task 1 rubric (see below).
Task2: Capital Budgeting Task (30 marks total) This task is based on the case information below.