Jimma University College of Business & Economics Department of Accounting & Finance
INVESTMENT MANAGEMENT (Acct 711)
Project Assignment Guideline
Submission Dates: TO BE ANNOUNCED
As per the objectives of this course, candidates are required to apply the theoretical knowledge of
investment management to real life practical environment. Once candidates are familiar with the
fundamental concepts of investment management, they are expected to conduct a project
assignment during the semester. Security Analysis, thus, is carefully chosen as topic of the project.
The class will be divided into different groups. Each group, then, selects a share company
operating in Ethiopia, preferably in Jimma town. The name of the selected company should be
submitted before starting the project. Under no circumstance, two groups can conduct the project
on the same company and/or industry. Candidates are advised to sufficiently understand the
theoretical concepts of security analysis. Besides, they ought to be sure on the availability of data
prior to selecting a company.
Every member of a group is strongly recommended to actively participate in the overall project
work though specific tasks may be assigned to each individual. Mode of evaluation is based on the
final group report and presentation of the project in class. Therefore, each member is required to
defend his/her group work during the presentation session.
Format of Reporting the Project
The major components of the report (introduction, analysis, conclusions and recommendations)
must be presented in the manner as depicted hereunder uniformly. The project report should
contain at least, but not limited to, the following particular elements under the major
components.
Chapter 1: Prologue/ Introduction (5%)
Background of share companies in Ethiopia
Legal Framework for Organizing, Operating, and Liquidating a share company in Ethiopia
Global Economic Assessment (optional)
Chapter 2: Analysis (85%)
Macroeconomic/ Market Analysis (20%)
The Global Economy
The Domestic Macro-economy
Demand and Supply Shocks
Federal Government Policies
Business Cycles
Forecasting Changes in the Market
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Jimma University College of Business & Economics Department of Accounting & Finance
Industry Analysis (25%)
Defining the Industry
Sensitivity to the Business Cycle
Industry Life Cycles
Analyzing Industries
Qualitative Aspects of Industry Analysis
Industry Structure and Performance
Evaluating Future Industry Prospects
Company Analysis (40%) (the data should extend at least from 5 years ago to date and the
forecast should cover at least 5 years from now)
Balance Sheet Valuation Methods
Dividend Discount Models
Price-Earnings Ratio (use fictitious prices where applicable, in case if you cannot find
price data)
Inflation and Equity Valuation
Financial Statement Analysis
Chapter 3: Epilogue/ Conclusions and Recommendation (10%)
Conclusions (5%)
Sustainability and viability of the current prevailing conditions in the future
Impacts of the economy and the industry on the company’s growth prospect, and
Long-term profitability of the economy, industry, and company (precisely conclude on
the major improving and/or deteriorating factors)
Recommendations (5%)
With sound justifications from the analysis and conclusions, suggest on the:
Investment’s worthiness
Timing of the Investment
Magnitude of stake to be devoted
Duration of the investment (holding period)
Considerations of holding the investment in a portfolio context
Strategies to be adopted in case of changes in the underlying expected conditions
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