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Compare financial performance of Eagers automotive limited and Appen Limited listed in the Australia Stock Exchange (ASX) from Yahoo Finance:

(a) Compare financial performance of the two companies using the latest annual reports. You are required to use measures such as changes in Revenue, Return on Assets, Return on Equity, Earnings Per Share and Dividends Per Share using the last two years annual reports

(b) Using daily stock market prices and the ASX300 index values, determine the daily stock returns, daily market index returns, arithmetic mean and geometric mean of the daily stock returns and index returns using data for the period 4 January 2021 to 30 June 2022. Please ensure that your chosen indexes are not what are called "accumulation indexes" as these include dividends.

c) Using the Capital Asset Pricing Model (CAPM), determine the cost of equity (also called the required return to equity) of the two companies allocated to you.

(d) Using the latest Balance Sheets of the two companies, determine the capital structures of the two companies and make a well-reasoned argument for similarities or differences in the capital structures of the two companies. In your discussion you are expected to refer to the industries that they belong to and also to other factors that influence capital structures.

e) Having determined the capital structure of the two companies, using other relevant information, calculate the weighted average cost of capital (WACC) of the two companies and explain why the two companies have different WACCs.

(f) Based on the calculations in Part (a) and Part (b), provide reasons why there could have been differences in performance between the two companies. You are expected to refer to company and industry factors.

(g) Critically evaluate the use of capital budgeting techniques in Asia Pacific countries and in your answer you should also explain whether the techniques are used to the same extent in the major countries of the region.

Note:

Consider the following as you work on this assignment: Data sources are annual reports, yahoo finance (au.finance.yahoo.com) and any other relevant sources You are expected to do calculations on an Excel Spreadsheet but the Assessment will be presented in a report format in a Word document. (See instructions below of how to embed an EXCEL file into a WORD document) Remember to cite the sources of information used. Put the list of references at the bottom of the report You will be assessed on how well you address the key questions in the assessments and how well you write the report. Ensure you strictly follow the Report Format and ensure you include an Executive Summary, Introduction and Conclusion that are properly written

	Adjusted Closing	Adjusted Closing
Date	Share Price	Index	Ri	(1+Ri)	Rm	(1 + Rm)
31/12/2019	0.96796	6802.40
2/01/2020	0.93073	6810.00	-0.03846	0.9615	0.0011	1.0011
3/01/2020	1.11688	6855.20	0.20000	1.2000	0.0066	1.0066
6/01/2020	0.96796	6857.40	-0.13334	0.8667	0.0003	1.0003
7/01/2020	0.85628	6943.60	-0.11538	0.8846	0.0126	1.0126
8/01/2020	0.78182	6930.10	-0.08696	0.9130	-0.0019	0.9981
9/01/2020	1.15411	6991.40	0.47618	1.4762	0.0088	1.0088
10/01/2020	1.37749	7041.90	0.19355	1.1936	0.0072	1.0072
13/01/2020	1.19134	7020.20	-0.13514	0.8649	-0.0031	0.9969
14/01/2020	1.07965	7078.00	-0.09375	0.9062	0.0082	1.0082
15/01/2020	0.93073	7113.50	-0.13793	0.8621	0.0050	1.0050
16/01/2020	0.93073	7158.60	0.00000	1.0000	0.0063	1.0063
17/01/2020	0.89351	7180.30	-0.03999	0.9600	0.0030	1.0030
21/01/2020	1.04242	7196.30	0.16666	1.1667	0.0022	1.0022
22/01/2020	0.96796	7180.50	-0.07143	0.9286	-0.0022	0.9978
23/01/2020	0.93073	7249.00	-0.03846	0.9615	0.0095	1.0095
24/01/2020	0.85628	7199.00	-0.07999	0.9200	-0.0069	0.9931
27/01/2020	0.74459	7203.20	-0.13044	0.8696	0.0006	1.0006
28/01/2020	0.78182	7129.30	0.05000	1.0500	-0.0103	0.9897
29/01/2020	0.73714	7135.90	-0.05715	0.9429	0.0009	1.0009
30/01/2020	0.70736	7108.60	-0.04040	0.9596	-0.0038	0.9962
31/01/2020	0.68502	7121.20	-0.03158	0.9684	0.0018	1.0018
3/02/2020	0.69247	7019.90	0.01088	1.0109	-0.0142	0.9858
4/02/2020	0.69247	7047.60	0.00000	1.0000	0.0039	1.0039
5/02/2020	0.67013	7080.90	-0.03226	0.9677	0.0047	1.0047
6/02/2020	0.67013	7146.50	0.00000	1.0000	0.0093	1.0093
7/02/2020	0.66268	7121.40	-0.01112	0.9889	-0.0035	0.9965
10/02/2020	0.78182	7108.00	0.17979	1.1798	-0.0019	0.9981
11/02/2020	0.85628	7181.50	0.09524	1.0952	0.0103	1.0103
12/02/2020	0.96796	7185.30	0.13042	1.1304	0.0005	1.0005
13/02/2020	1.15411	7204.60	0.19231	1.1923	0.0027	1.0027
14/02/2020	1.15411	7227.10	0.00000	1.0000	0.0031	1.0031
18/02/2020	1.07965	7221.20	-0.06452	0.9355	-0.0008	0.9992
19/02/2020	1.07965	7208.30	0.00000	1.0000	-0.0018	0.9982
20/02/2020	1.11964	7237.40	0.03704	1.0370	0.0040	1.0040
21/02/2020	0.135	7255.20	-0.87943	0.1206	0.0025	1.0025
24/02/2020	1.03966	7230.40	6.70119	7.7012	-0.0034	0.9966
25/02/2020	0.95969	7065.40	-0.07692	0.9231	-0.0228	0.9772
26/02/2020	0.79174	6953.80	-0.17500	0.8250	-0.0158	0.9842
27/02/2020	0.73576	6790.70	-0.07071	0.9293	-0.0235	0.9765
28/02/2020	0.66379	6737.40	-0.09782	0.9022	-0.0078	0.9922
2/03/2020	0.56782	6511.50	-0.14458	0.8554	-0.0335	0.9665
3/03/2020	0.59181	6461.10	0.04225	1.0422	-0.0077	0.9923
4/03/2020	0.6078	6511.60	0.02702	1.0270	0.0078	1.0078
5/03/2020	0.52783	6398.50	-0.13157	0.8684	-0.0174	0.9826
6/03/2020	0.59981	6472.40	0.13637	1.1364	0.0115	1.0115
9/03/2020	0.54382	6287.50	-0.09335	0.9067	-0.0286	0.9714
10/03/2020	0.51983	5822.40	-0.04411	0.9559	-0.0740	0.9260
11/03/2020	0.6158	5995.80	0.18462	1.1846	0.0298	1.0298
12/03/2020	0.6078	5789.30	-0.01299	0.9870	-0.0344	0.9656
13/03/2020	0.55982	5370.90	-0.07894	0.9211	-0.0723	0.9277
16/03/2020	0.50384	5590.70	-0.10000	0.9000	0.0409	1.0409
17/03/2020	0.47585	5058.20	-0.05555	0.9444	-0.0952	0.9048
18/03/2020	0.50384	5332.80	0.05882	1.0588	0.0543	1.0543
19/03/2020	0.48784	4998.80	-0.03176	0.9682	-0.0626	0.9374
20/03/2020	0.46385	4809.40	-0.04918	0.9508	-0.0379	0.9621
23/03/2020	0.52783	4854.30	0.13793	1.1379	0.0093	1.0093
24/03/2020	0.44786	4564.10	-0.15151	0.8485	-0.0598	0.9402
25/03/2020	0.47985	4753.30	0.07143	1.0714	0.0415	1.0415
26/03/2020	0.44786	5006.20	-0.06667	0.9333	0.0532	1.0532
27/03/2020	0.51983	5135.20	0.16070	1.1607	0.0258	1.0258

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