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
