need capm, gordon model, stock market
Coursework 1 Assignment Brief, Assignment
Guidelines and Rubric Assignment Brief
Weighting Coursework 1 40% Anonymous marking Yes
Submission Date and Time See Blackboard submission link 23:59:00 Expected return of feedback and marked work 14 working days from the deadline
Procedure Electronically via
Word Count 2500
Assignment Title Equity Valuation and Market Efficiency Report
1. Demonstrate knowledge of the purpose and functions of global financial markets
2. Analyse the role of financial market data in supporting business decisions
3. Critically evaluate the impact of the global financial markets on the business environment
4. Demonstrate the ability to analyse and present quantitative data to support an argument.
5. Use information technology to analyse and communicate financial data
This assignment is the form of a group coursework event analysis report based on Bio-Techne Corporation, USA. Detailed information of BioTechne’s inclusion in the S&P 500 Index is widely available in the internet.
The purpose is to use relevant Excel templates to provide valuation and interpret price impacts following the event.
On 24 August 2021, a press release from S&P Dow Jones Indices, a Division of S&P Global announced that Bio-Techne Corporation, an American developer, manufacturer, and seller of life science and clinical diagnostics reagents, instruments and services for the research, diagnostics, and bioprocessing markets. The press release announced that the Minneapolisbased company will join the S&P 500 index on 30 August 2021.
You are to perform the following tasks:
• Conduct in-depth background research to enhance the analysis of Bio-Techne’s inclusion in the S&P 500 Index event. Such research should demonstrate in-depth understanding and impact on the S&P 500 index as well as the life sciences and healthcare segment of the US market. You should set up a timeline (see Section below) to reflect the chronicle of events and key dates prior to the announcement by S&P Global. (20%)
• Conduct a comprehensive valuation on Bio-Techne Corporation prior to the announcement. Your valuation should use relevant valuation technique(s) to arrive at an appropriately discounted present value (per share). Your valuation must be supported by realistic assumptions (not based on information from stock market analysts). (40%)
• Evaluate the extent of price impacts on Bio-Techne Corporation following the news announcement. Does the movement of share price reflect the insights from Efficient Market Hypothesis (EMH)? (40%)
You have been asked to produce a report. It should contain the following:
• Appropriate coversheet (as attached in this document – please ensure appropriate coversheet is attached to your assessment brief)
• Title Page, including the given title in full.
• Contents Page
• Main body, which should also be organised under appropriate headings.
• Appendices, which should be numbered.
• Make sure you refer your reader to them as required.
Your work should be word processed in accordance with the following:
• Font style, Arial, font size 12
• 1.5 line spacing.
• The page orientation should be ‘portrait’
• Margins on both sides of the page should be no less than 2.5 cm
• Pages should be numbered
• Your name [should/should not - delete as required] appear on the script.
• Your student number should be included on every page.
Read the financial information from the website of Bio-Techne Corporation (https://www.biotechne.com/), USA and download its annual reports for past three years for financial analysis and valuation. You should also gather the daily price data and information on Bio-Techne, Dow Jones Index and industrial sector index from news agencies like Yahoo Finance, Bloomberg, Reuter, Marketwatch, etc. In addition, you should also be kept abreast of the current and global news on Bio-Techne Corporation, USA and its competitors which might influence on the share price movements of Bio-Techne Corporation.