Corporate Financial Management

Instructions on Assessment:

Select a multinational company of your choice from the FTSE 100 index. You may use the “Investor Relations” section of the company website to download annual statements covering the most recent 5-year period. The report structure should be as follows:

1. Evaluate and discuss the financial performance of the company over the period of analysis. As a minimum you must cover the following:
   a. General review of the income statements
   b. Working capital management policy
   c. Payout policy
   d. Historical share price performance

(20 Marks)

2. Estimate the share price of the company by means of the Dividend Discount model and utilising Asset Pricing Model(s). For this task use the sensitivity analysis in relation to the variables which are hard to predict and/or accurately estimate. Relate the obtained result to the market estimate of the share price and comment on the reasons behind possible differences citing relevant theories.

(40 Marks)

3. Discuss the capital structure of the company using the company’s balance sheet in the context of the Modigliani and Miller theories on capital structure and prepare a constructive critique of these theories. Your discussion should involve various balance sheet items such total equity, total debt, and other relevant information.

(40 marks)
(Total 100 Marks)
Mapping to Programme Goals and Objectives

This assessment will contribute directly to the following Postgraduate programme goals and objectives.

Goal One: Be independent, reflective critical thinkers.

1. Demonstrate awareness of their personal strengths and weaknesses through critical reflective practice.
2. Understand and challenge personal patterns of thinking and behaving.

Goal Two: Be culturally and ethically aware.

1. Demonstrate their ability to work in diverse groups and teams.
2. Reflect on their own ethical values.

Goal Three: Have developed leadership and management capability.

1. Demonstrate their personal contribution to team effectiveness.
2. Communicate complex issues effectively.
3. Demonstrate decision making and problem-solving skills.
4. Carry out presentations and lead discussions.

Goal Four: Have developed and applied knowledge of international business and management theory.

1. Acquire, interpret, and apply knowledge of international business, management, and organisational functions.

Goal Five: Have developed a range of research skills and project capabilities.

1. Plan and complete a major individual piece of research on a contemporary business, management, or leadership topic of their choice.
2. Demonstrate skills of analysis and synthesis in the application of research methods to the exploration of contemporary business issues.

Goal Six: Have developed specialist knowledge about the theory and practice of your programme of study.

1. Demonstrate specialist functional knowledge in relation to your programme of study.

Module Specific Assessment Criteria and Rubric

Trait 0
Fail 1 – 39
Fail 40 – 49
Fail 50 – 54
Pass 55 – 59
Pass 60 – 69
Commendation 70 – 100
Distinction
Critical Appraisal Students work fails to demonstrate even the most basic levels of the ability to appraise. Inarticulate and lacks coherence, students work lacks evidence of even a crude level of appraisal Crude and lacking application to vignette, students work gives an overview of theory without demonstrating ability to appraise the issues in application. Appraisal of the vignette demonstrates an ability to interpret the application of theory to a real world company, highlighting (in a perhaps superficial way) differences and divergences well. Appraisal demonstrates a good ability to go beyond the obvious implications and conclusions. Clear, coherent and importantly cohesive as an appraisal. Well-structured demonstrating the ability to form a well-considered argument. Demonstrates independent thought and reflection, thinking around the issues, and going beyond a simple application of theory.
Coming to rational judgments, logic and strength of reasoning
Students work lacks evidence of a basic ability to form evidence based judgments. Judgments made, but evidence and reasoning not always clear and/or coherent. Judgments are based on evidence and clear reasoning with student demonstrating a clear linkage between logical lines of thought to come to their conclusions. Outstanding evidence of a well-considered and weighted judgment with the students calibration of the evidence and reasoning being exceptional.

ASSESSMENT REGULATIONS

You are advised to read the guidance for students regarding assessment policies. They are available online here.

Academic Misconduct

The Assessment Regulations for Taught Awards (ARTA) contain the Regulations and procedures applying to cheating, plagiarism, the use of Artificial Intelligence (AI) Systems, and other forms of academic misconduct.

The full policy is available here

You are reminded that plagiarism, collusion, the use of Artificial Intelligence (AI) Systems, and other forms of academic misconduct, as referred to in the Academic Misconduct procedure of the assessment regulations, are taken very seriously. Assignments in which evidence of plagiarism or other forms of academic misconduct is found may receive a mark of zero.

Late submission of work

Where coursework is submitted without approval, after the published hand-in deadline, the following penalties will apply. For coursework submitted up to 1 working day (24 hours) after the published hand-in deadline without approval, 10% of the total marks available for the assessment (i.e.100%) shall be deducted from the assessment mark.

For clarity: a late piece of work that would have scored 65%, 55% or 45% had it been handed in on time will be awarded 55%, 45% or 35% respectively as 10% of the total available marks will have been deducted.

The Penalty does not apply to Pass/Fail Modules, i.e. there will be no penalty for late submission if assessments on Pass/Fail are submitted up to 1 working day (24 hours) after the published hand-in deadline.

Coursework submitted more than 1 day (24 hours) after the published hand-in deadline without approval will be marked as zero but will be eligible for referral. The reassessment should where appropriate, and as determined by the Module Leader, be the same method (e.g. essay) but maybe with a different task (e.g. different essay title) or with the same task (e.g. the same essay title) as indicated in the Module handbook.
In modules where there is more than one assessment component, Students are not required to complete all assessment components if an overall Pass Mark (40% UG, 50% PGT) has been achieved.

The only permitted exception will be in cases where the University is prevented from doing so by a PSRB requirement. In the case of PSRB requirements, a variation order will be required from the regulations.

In modules, where there is more than one assessment component and an overall pass mark has not been achieved, Students will be eligible for a referral* in the individual failed module and/or not attempted component(s) of assessment.

These provisions apply to all assessments, including those assessed on a Pass/Fail basis.

The full policy can be found here

Word limits

The word count is to be declared on the front page of your assignment and the assignment cover sheet. The word count does not include:

• Title and Contents page • Reference list • Appendices • Appropriate tables, figures and illustrations
• Glossary • Bibliography • Quotes from interviews and focus groups.

Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count.

If this word count is falsified, students are reminded that under ARTA this will be regarded as academic misconduct.

For those assessments where students are required to keep to the word limit, it is proposed that they should be informed that the marker will stop reading at the point when they judge that the word limit exceeds the recommended word count by more than 10%. The marker will indicate the point at which they stop reading on the text.