Bus8407 Financial Analysis|Financial Concepts Assessment Answer

Learning Outcomes Assessed​:●Apply advanced financial concepts including time value of money, risk-returncharacteristics, interest rates, bond prices and stock valuation●Apply short-term financial decision-making techniques including working capital, current asset management, and current liability managementAssessment Topic:Short-run financial decision making of the firm(SPK & BGP)Select any two NZ Stock Exchange-listed firms belonging to NZX50 Index andanalyse their working capital showing how the change in their working capitalimpacts their risk-return characteristics. Also, discuss how findings from such ananalysis can be used by the stakeholders (managers, creditors, and shareholders) tomake informed ​short-run financial decisions. ​You may select a sample period of 3-5years and refer to their annual reports for the requisite data. (Spark New ZealandLtd. and Briscoe   Group Ltd.)• Your assessment includes ​data analysis ​using Excel Spreadsheets andreport writing (600 words​).• ​When conducting your analysis, focus on the followingi. Is the firm’s working capital positive or negative?ii. Does a negative working capital imply a negative sign for the firm?iii. Using the change in working capital, answer the question whetherthe firm generates more cash as its business grows or the firm requiresadditional cash to grow. (Which Short-Term Financial Policy should tochoose)iv. Show how interest rate change and the time value of money(passage of time affecting liquidity) become important considerations inworking capital management affecting firm value in bond and equitymarkets. (Suppose the profitability caused by borrowing)v. How does the change in working capital help the stakeholders tomake short-run financial decisions?