Assignment Brief

 

Module Code and Title: FIN7A1 Corporate Finance

 

 

Assignment Number & Title:

Assessment 1, 50% of TMM, Group Assignment Project

 

 

Assessment Type: Group Case Study Based Project

 

 

Weighting of assessment (%TMM) :50% Assessment Learning Outcomes

Upon successful completion of this assessment the students will be able to:

 

A2: Demonstrate a command of relevant investment analysis, corporate finance and risk management techniques and methodologies applicable to problem solving, evaluation and strategy formulation in the global financial, trading and investment context.

 

A3: Provide a comprehensive understanding of the interaction of finance, economics and technology with the trading and investment sectors.

 

A5: Critically evaluate markets and organisations’ financial positions, carry out the risk assessment process and develop an investment decision making strategy that acknowledges ethical and diversity dilemmas of financial markets.

 

 

Module Leader: Nikos Nitsas Internal Reviewer:

External Examiner:

Submission Details

 

Submission Deadline: Week 13 28/12/2020 23.59 via Blackboard

 

Release of Feedback: 15/01/2021

 

Completing Your Assignment

What am I required to do in this assignment?

 

You are an equity investment analyst in a major investment bank in the city of London. As part of your job at the bank, you regularly carry out financial and operational performance analysis of companies listed on the London and Global Stock.

Requirements

Carry out a detailed analysis on two listed companies operating in the same sector/industry. The companies should be publicly traded and have at least a couple of years of trading history and two sets of annual financial statements. The companies can be listed in any market.

The period of analysis should be for the last few years. Try to avoid a)Financial service firms (banks, insurance companies,investment banks) b) Money losing companies c) Companies with large capital arms (GE and the auto companies) d) Real estate investment trusts

 

Your report should include

 

I.  Corporate Governance Analysis

Is there a separation between management and ownership within your chosen companies? If so, how responsive is management to stockholders?

What are the other potential conflicts of interest that you see in those firms?

How do the firms interact with financial markets? How do markets get information on the firm? How do the firms view their social obligations and manage their social image ?

 

II.  Risk and Return ¨

What is the risk profile of your companies? How much overall risk is there in those firms? Where is this risk coming from (market, firm, industry or currency)? How is the risk profile changing?

What return would you have earned investing in either company’s stock? Would you have under or outperformed the market? How much of the performance can be attributed to management? ¨

How risky is each company’s equity? What is its cost of equity? How risky is each company’s debt? What is its cost of debt?

What is each company’s current cost of capital?

 

III.   Measuring Investment Returns

Is there a typical project for either of your firms? If so, what does it look like in terms of life (long term or short term), investment needs and cash flow patterns?

How good are the projects that the companies have on their books currently? Are the projects in the future likely to look like the projects in the past?

Is there a size limit? 3,000 words plus or minus 10%.

What do I need to do to pass?

 

You must demonstrate the ability to meet learning outcomes, Answer most the questions above correctly

You should show evidence that you have clear capacity to analyse the corporate finance decision and strategies of real companies

 

You must show evidence that you can apply theories and models in practice using real data You must demonstrate an ability to critically analyse financial data

Demonstrate ability to understand market conditions

 

Show clear evidence of deep understanding, analytical skills and engagement independent learning.

 

Even though the assignment or report may be the product of a group, each individual member of the group is responsible for a given specific element/task. This shows the accountability of each group member for the work delivered by the group. A mark will be given to each individual student for the element of the task that he/she has completed. The task selection for each student will be noted in advance.

How do I produce high quality work that merits a 70% or above grade?

 

You should follow closely the below mentioned requirements:

70%+ means: Overall excellent report, all aspects of brief addressed in full, insightful analysis and reflection throughout. Logical and insightful recommendations included which logically follow from the main body of the report.

How does assignment relate to what we are doing in the scheduled sessions?

 

The group project is based on corporate finance theory and models discussed throughout the semester. It follows in practice the scheduled sessions. This means, you will apply the taught methods and techniques every single week within the context of context of real market conditions. The process is scaffolded and each week you should incorporate the models and techniques that have been covered in the teaching and learning according to module outline. Hence, the projects follow 100% the learning outcomes and the teaching material.

How will I receive formative feedback for this assignment?

 

In week 9 you will have to produce a draft with summary of the outcomes

Formative feedback is provided to all students on submission of the draft.

How will my assignment be marked?

Criteria                                                                                                         %        1       2           3              4          5                                                                                                                      Mark

Task 1                                                                                                                         25

Task 2                                                                                                                         25

Task 3                                                                                                                         25

Appropriate links with the literature and accurate referencing        5

including a bibliography/reports of relevant issues

Appropriate presentation, structure and sequencing of                       5

context, including clear tables and charts where appropriate, accurate analysis, justification and interpretation of findings

Capacity of critical thinking and effective independent learning     15

and use of required technology

Your assignment will be marked according to the threshold expectations above and the marking criteria below. You can use them to evaluate your own work and estimate your grade before you submit.

 

Marking Criteria Table

 

FIN7C5 Investment and Portfolio Management (Assessment 2)

Note: 1 – Poor, 2 – Satisfactory, 3 – Good, 4 –Very good, 5- Excellent

*Please refer to the following page for the detail description of each rating.

 

 

70%+ Excellent report, all aspects of brief addressed in full, insightful analysis and reflection throughout. Logical  and insightful recommendations included which logically follow from the main body of the report.

 

60-69%: Very good report, most aspects of brief addressed in full, clear analysis and reflection throughout. A good level of insight demonstrated through the development of the recommendations which are clearly informed by the main body of the report.

 

50-59%: Generally, a good report, most aspects of brief addressed with evidence of analysis and reflection. Recommendations included which follow, but not always from the main body of the report.

 

45-49%: A marginally fail report, most aspects of brief addressed but with omissions. Evidence of limited analysis and reflection. 30-39%: Little evidence of reflection. Tasks are not adequately addressed with a largely descriptive

approach adopted. Recommendations are underdeveloped, requiring further development.

<44%: Very poor report with little of substance. Little evidence of reflection. Tasks are not adequately addressed

Total                                                                 100