Learning Outcomes -
Define, analyse, synthesise, critically discuss and interpret financial accounting reports and strategies and key concepts and comparative models, and their relationship to financial strategy and decision making within businesses and organizations.
Identify, analyse and evaluate financial business and enterprise positioning within the contexts of corporate investment, asset management, decision making and strategy, and economic, legal and tax environments.
Question One-
You have been asked to advise an International listed company within the textbook publishing industry on how to improve shareholders' wealth by considering the relevant concepts of financial management related to a new product investment proposal. You will prepare an investment proposal for 6 years for the new product line using one of the discounted cash flow techniques as well as one traditional technique. Marks will be awarded for originality of approach, relevant quotations and references from financial management theorists and all relevant supporting business research documentation.
Within your report include a critical response to the following:
- Why is the investment appraisal process so important?
- The concept of relevance applicable to the determination of the project's cash flows stating all assumptions made.
- What are the criticisms of the methods used in the investment appraisal process?
- A critical review of the logic behind the decision making process.
Assessment Presentation Requirements:
- Each student is required to provide documentation within a stipulated word limit of 3000 words for each assignment.
- The content of the documentation produced by each student is required to be within the maximum word lengths (in brackets) and to cover the specific categories listed.
1. Provide an executive summary of their personal and individual research and work undertaken for the topic set. It is required in the form of an Executive Report standard format.
2. Indicate and identify the key areas of research and sources which the student has had to identify and undertake and their key sources of research/references/literature search sources related to the topic set (correctly referenced as an appendix).
3. A summary of key theoretical positions from the evidence identified by the individual student related to the topic set.
4. An indication of the individual key conclusions and findings related to the theoretical positions and the practical issues related to the topic set.
5. The key critical observations and commentary identified by the individual student within the module topic-subject set.
6. Identification of the key topic/subject issues/conclusions which the student has learned as a result of undertaking the assignment on the topic set.
Question Two-
1. Selection of Companies
As a consultant, you have been asked to report upon the financial performance of any two (2) companies from the UK FMCG FIRMS. From their respective annual reports or other suitable financial databases (such as Financial Analysis Made Easy-FAME; Morning Star; Osiris; etc.). Obtain relevant financial information for your chosen companies for the last 5 years.
2. Extraction of ratios
From above financial platforms, extract the following financial ratios (or the necessary information or variables to calculate the ratios) for these companies over a period of 5 years as follows:
- Profitability Ratios [Any 3 ratios]
- Liquidity Ratios [Any 2 ratios]
- Gearing Ratios and capital structure ratios, and growth ratios. [Any number]
- Investment Ratios [Any 2 ratios]
3. Discussion of ratios
Critically examine the performance of these two companies using the ratios extracted over the period under consideration (use graphs of the ratios extracted to support your analysis). Recommend which of these companies would be a good investment (with the necessary justifications)
4. Weaknesses of Ratios
What are the main weaknesses associated with such analysis?
Attachment:- Assignment.rar