BU7403 Finance for Managers Assignment Brief | University of Chester
Assessment Task
You are employed as the Financial Director in the finance division of a corporation that is registered in the FTSE 100 of the London Stock Exchange (https://www.londonstockexchange.com/indices/ftse-100/constituents/table). The Board of Directors has asked you to write a business report of 4,000 words on the company covering the following issues:
- Financial analysis and interpretation of company reports:
- Using financial analysis tools (including horizontal, vertical, trend and ratio analyses) as well as relevant academic literature, critically
- analyse how well the company is financially performing over time, acknowledging any limitations associated with your financial analysis.
- Performance measurement analysis & Strategic and stakeholder analysis:
- Critically discuss the limitations associated with fixed budgeting and identify the main advantages of benchmarking. Include comments on how various types of benchmarking can help your chosen company achieve its strategic objectives.
- Your company is seeking to invest in a company registered in a FTSE 250 company. Choose two unique companies from the FTSE 250 (The link: https://www.londonstockexchange.com/indices/ftse-250/constituents/table). Evaluate the two companies using the payback period and the net present value.
Critically discuss both methods as capital investment appraisal tools. Assume the following: –
- Initial investment equals to 20% of most recent market capitalisation of each company.
- Cash inflows are cash generated from (used in) operations for the past 10 years in the cash flow statements of each company.
- The cost of capital equals to each company’s ROCE.
- For the two companies selected as investment opportunities,
- Analyse the two chosen companies’ long-term debt sources of finance that they are using to fund their operations, identifying the advantages and disadvantages of these sources.
- Discuss the main risks that the two chosen companies are facing and how they are managing these risks, critically evaluating their risk
- Identify and critically evaluate the dividend policy of two chosen companies including discussion of the factors that their management needs to consider in formulating their dividend policies.
(4,000 words)
Learning Outcomes
This assignment will show that you are able to:
1. Critically assess the theoretical basis of accounting and finance theories.
2. Deploy accounting theory and tools to the critical evaluation and interpretation of company reports.
3. Critically assess and evaluate strategic and stakeholder analysis using appropriate accounting theory and tools.
4. Deploy appropriate accounting theory and techniques to the evaluation and analysis of performance measurement.
Key Resources.
Textbooks:
– Berk, J. & DeMarzo, P. (2024) Corporate Finance, Global Edition, 6th edition, Pearson Education.
– Mishkin, F.S. & Eakins, S.G. (2024) Financial Markets and Institutions, Global Edition, 10th edition, Pearson.
– Bodie, Z., Kane, A. & Marcus, A.J. (2024) Investments, 13th edition, McGraw-Hill.
– Mishkin, F.S. (2024) The Economics of Money, Banking and Financial Markets, 13th edition, Pearson Global Edition.
– Ross, S.A., Westerfield. R.W., Jaffe, J.F. & Jordan, B.D. (2024) Corporate Finance Core Principles and Applications, International Edition, 7th edition, McGraw-Hill.
– Hull, J.C. (2023) Risk Management and Financial Institutions, 6th edition, Wiley.
– Vernimmen, P., Quiry, P., & Le Fur, Y. (2022) Corporate Finance Theory and
Practice, 6th edition, Wiley.
– Brealey, R.A. & Myers, S.C. (2022) Principles of Corporate Finance, 14th edition, McGraw-Hill.
– Fabozzi, F.J., Modigliani, F. & Jones, F.J. (2013) Foundations of Financial Markets and Institutions, 4th edition, Pearson International Edition.
-Boakes, K. (2010) Reading and Understanding the Financial Times Updated for 2010-2011, 2nd
edition, Financial Times Prentice Hall.
– Nobes, C. & Parker, R. (2010) Comparative International Accounting, 11th edition, Financial Times
Prentice Hall.
– Watson, D. & Head, A. (2010) Corporate Finance Principles & Practice, 5th Edition, Financial Times
Prentice Hall.
– McLaney, E. (2009) Business Finance, 9th edition, McGraw-Hill
Journals and Databases:-
– ABI/INFORM Global: Journals; Research reports; Newspapers
– Business Source Premier (EBSCO database containing MarketLine Reports): Journals; Company & Industry Information; Business Case Studies; Market Research reports; Conference papers
– Emerald Insight: Journals; Case studies
– FAME (Financial Analysis Made Easy): Market intelligence; Company information; Research reports
– Financial Times (with one month’s embargo): Newspaper articles; Company information
– Gale Business Insights: News; Articles; Trade Journals
– GlobalData Explorer (contains Marketline Advantage content): Market intelligence; Case Studies; Company information – IBISWorld: Market intelligence; Case studies; Company information
– Statista: Statistics; Reports; Market Insights