BUS301 Business Finance Assignment Help

BUS301 Business Finance Assignment Help

BUS301 Business Finance Assignment Help

Introduction

Companies are the complex set of activities and its shares are the utmost required factors to generate funds from the market either money market or capital market. Australian stock exchange is a portal where all the securities and scripter’s are traded throughout the time. In this topic we would be discussing two companies named Telstra and One. Tel ‘share price movement and it is also considered that how the fluctuation in their share price brings the positive and negative value of the companies in the long run. In this report we will share our thoughts on the company’s share price movement and risk involved in the fluctuation of price and how these trends could be depicted with the help of graphs and diagrams. In addition to this we will be showcasing the relation between risk and return that come across due to the up and down in the share price in mean time.

BUS301 Business Finance AssignmentBody context

Part-B

Share prices of One.Tel and Telstra are the most common factors to evaluate company’s performance respectively. In this report we will be answering following two questions given as below.

Collection of weekly share price over the 5 weeks period and showcase the results in the graph and diagram with the changes occurred and trends of Share prices throughout the time?

Risk and return concept are the most common factors which are used to interrelate with the investor’s perception and its return expectation with the particular investment. Here we have been given share price of two companies and how they make movement within 5 weeks. In this analysis and with the complete watch over the companies share prices it was seen that companies share prices are not stable and giving high amount of ups and downs that results into low credibility to the investors. But it is also the fact that company    in the time duration of 5 Sep to 21st October2016 week has brought up its share prices very well ­­­­­­­­­. The share price movement of One.Tel Tel and Telstra has been taken into consideration and this changes movement has depicted company’s value in terms of its earning and the risk involving activities in the given projects.  There is seen that on 6 Sep Company was having $ 199.02 share price which was increased to $ 205.99. The company’s share value has been increased this much due to the following reasons given as below (Telecom, 2016).

Company’s good performance
Employee’s efficiency
Product quality
Brand image
Value added services
Company Board of Directors

Company Board of Directors

Particular

Opening Price ( $)

Closing Price ($)

22 Sep, 2016

206.4

203

21 Sep, 2016

206.37

201.56

20 Sep, 2016

206.85

203.91

19 Sep, 2016

207

205

16 Sep, 2016

200.42

199

15 Sep, 2016

196.49

196.4

14 Sep, 2016

195.75

194.86

13 Sep, 2016

197.06

193.45

12 Sep, 2016

195

194.1

9 Sep, 2016

199.09

193.7

8 Sep, 2016

199.55

196.36

7 Sep, 2016

205.5

200.71

 

199.02

199

Company share prices have been changed very positively and showcased that investors are earning very good amount of return. As it is given that company was portraying 205.05 open share prices on the 7 Sep and closing price of the same day provides 200. 71 cut rate those results into loss of $ 5.5 per share price. This result provides that in the short term Telstra was not giving good amount of profit to its investors in addition to these investors was seeing positive results in the long run as share price of Telstra increased to 206.04 per share. The percentage changes in the price of the share since 7 Sep 2016 to 22 Sep, 2016 are 3 %. 

Share price movement

Share price movement of One.Tel has been described in the below graph. This company has been running its business in telecommunication business. Modulation of share price is showcasing that the market value of the shares in the market is accompanied with high risk and depicting that share price of market is not stable that results into loss to several investors throughout the time. Opening share price of the company on 5 Sep 2016 was $ 195 which was fluctuated throughout the time that results into losses to several investors. In addition to this closing price of the One.Tel was increased to 206.55 on 21st Sep 2106. This share price movement of One.Tel Tel has been resulted due to the following factors such as (Telstra gathers suppliers for in-depth network review", 2016).

Company’s earning capacity
Brand image
Political changes
Technology development and advancement in economy.

Technology development and advancement in economy.

Particular

Opening Price ( $)

Closing Price ($)

21Oct, 2016

206.55

204

30 Sep, 2016

202.37

200.56

20 Sep, 2016

206.85

203.91

20 Sep, 2016

205

205

16 Sep, 2016

201.42

199

15 Sep, 2016

196.49

196.4

14 Sep, 2016

195.75

194.86

11 Sep, 2016

197.06

193.45

10 Sep, 2016

194

194.1

9 Sep, 2016

199.09

193.7

8 Sep, 2016

199.55

196.36

5 Sep, 2016

205.5

200.71

 

199.02

199

   

 

 

 

 

 

 

 

 

 

 

Analysis upon the risk and return concept on the selected shares

In this report we have selected the share price movement of two companies named Telstra and One.Tel Ltd. Both companies has been running there business in telecommunication sectors and showcasing wide range of changes throughout the time. High level of changes and up and down found in both the stock share prices have depicted the high risk involved to the investors’ investment in the companies. In addition to this company has provided clear prices effects on its annual return that could also be used by several investors to come up with their effective decision making. It is observed that share price of one. Tel on 5 Sep 2016 was 199.02 open prices and closed on the same day at a loss of .2. Afterward companies have seen that share price was increased to 206.55 on 21st Oct 2016 that has provided very good amount of return to the investors. But the unstable price range has reduced shareholders credibility and there is there likely behavior to not to invest more money in the same portfolio. In case of Telstra changes in the share prices are not that much unstable and companies share price has been gradually increased due to its high earning capacity and more incredibility to the investors at large. There has been seen 3 % increment changes in its share price which has provided good and stable retune to its investors. In addition to this due to the less negative changes in price has resulted into more investor’s credibility with the company’s working system. There are mostly three types of investors are found in the market who could be described in context with the risk such as

1. Investors who are not even ready to take any kind of risk will be better off to invest their investment in the movement securities at risk free return rate.
2. Investors who are ready to take mild risk will better off to make their investment in Telstra and One. Tel Company
3. Company who is high risk taker and makes aggressive investment then makes their investment in newly ventures giving return (Liang, 2016).

With the classification of investors in context with their risk observing capabilities it could be said that in order to make investment in both companies they should be in a condition to take care of little risk. Furthermore it is also observed that company has been running their business in telecommunication sectors which is at the booming stage. Therefore it is clear to understand that company will be generating high amount of profit in the near future (ElKelish & Hassan, 2015).

Investment advice

One.Tel and Telstra both companies have been operating their business in telecommunication services and has made high amount of investment in its research and development department to make its product digitally accepted by this fourth generation products. With the clear grasp of this it is advisable that investors should make their investment in both companies to earn more return.

Conclusion

One.Tel and Telstra Lt is the telecommunication services provider and has been using several tactics to make more return to the investors. In this report we have observed changes occurred in the share price of both companies from 5th Sep to 21st cot.  This has provided me how companies share price fluctuate through the time and how shareholders faces losses due to this several changes. It is also found that investors should be having long term perspective with their investment in order to avoided losses. As in the short term there will be always losses to investors but if the companies are performing well then on the suitable investment there will be profit to the investors. Now I would like to conclude my report by saying that share prices are the most indicators of the company’s value in the market.

References

"Telstra gathers suppliers for in-depth network review", 2016, Total Telecom Onlin"SK

ElKelish, W.W. & Hassan, M.K. 2015, "Corporate governance disclosure and share price accuracy", Journal of Applied Accounting Research, vol. 16, no. 2, pp. 265-286.

Liang, W. 2016, "Sensitivity to investor sentiment and stock performance of open market share repurchases", Journal of Banking & Finance, vol. 71, pp. 75-94

Muravyev, A. 2013, "Investor Protection and the Value of Shares: Evidence from Statutory Rules Governing Variations of Shareholders' Class Rights in an Emerging Market”, Journal of Law Economics & Organization, vol. 29, no. 6, pp. 1344.

Telecom shares LTE-A Pro plans", 2016, Total Telecom Online,