Individual assignment
Weighting – 100% of the marks for this module
This is an individual assignment of about 2,500 – 3,000 words.
The hand in date is:
Requirements:
You are the financial manager of Lakes plc (Please note: this is not a real company), a listed manufacturing company, which has divisions in a number of countries and trades globally.
You have decided to try and address deficiencies in the Board of Directors knowledge of the financial management systems of the company. You have identified key areas for discussion which you feel the directors need to have a greater understanding of when making strategic decisions.
The areas you have decided to focus upon are:-
1. The relative merits and limitations of the different sources of capital, both debt and equity, available for large, long term projects. This should include a discussion of the potential importance of gearing when raising new finance. (60%)
2. Three key methods of investment appraisal and the extent to which they can aid project selection and improve shareholder wealth. (40%)
You are required to produce a report to the board of directors which discusses the key principles and concepts regarding the above areas.
The report should include critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you propose to adopt.
The University policy on cheating collusion and plagiarism will be applied to this piece of work.
Guidance:
Students are encouraged to be innovative in their approach as to what should be included in this report the following may be of some use in providing guidance to a possible approach
The aim of the assignment is to help you understand how key areas of financial management are demonstrated in practice by a large, international company. This will include investigating the relevant topics from throughout the course linked to the above issues. Some of the principles, concepts and models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the report and may concentrate on different areas within the topics.
Numerical example for illustrative purposes may be of use but should not be the only element of the work; discussion and evaluation of models and concepts are also required.
Please avoid relying too heavily on descriptive sections reproducing information available from the set material. It is your own logical, evaluation of the topics, the interpretation of course material and presentation, with critical analysis, of a coherent strategic report that will attract high marks.
Marking Guide
The learning outcomes for this module assessed by this piece of work are
Knowledge and Understanding
1. Examined and critically evaluated the key strategic decisions that a business may have to make and appreciated how accounting and finance can assist in making and evaluating those decisions.
2. A critical understanding of specific analytical skills in key decision areas within strategy and finance at local and international level
3. A critical understanding of the limitations of the current state of financial theory in making strategic business decisions
Skills
4. Applied the key valuation concepts and methodologies of financial decision making in order to contribute to the wider decision making of the organisation
