This analysis must cover the following lines of investigation: i) Analysis of growth rate and asset turnover. ii) Analysis of operating profit margin and business risk of the company. iii) Analysis of the financial risk of the company. iv)

The Robert Gordon University

Aberdeen Business School

 

Session :

2016/2017

Semester :

2

 

     
   
   

 

   

 

   

 

       

 

Coursework should be submitted in the boxes provided on Level 4.

 

 

 

BSM653-Corporate Financial Management  Coursework

 

This coursework should be presented in the form of a Management Report which is divided into sections as follows: Title/Front Page (Students Name and Matriculation Number, Course, Name of the Module), Contents Table, Executive Summary, Coursework, Bibliography and References, Appendices.Coursework should be around 3500 words in length (excluding appendices) and in typed format.

 

Coursework tasks:

 

  1. Undertake a Risk Profile Analysis of the chosen company over at least the last 5 years. More specifically, using both accounting and market-based risk measures, estimate and explain the meaning, significance and sources of the key risks facing the company.                                  

(50/100)

This analysis must cover the following lines of investigation:

i)     Analysis of growth rate and asset turnover.

ii)    Analysis of operating profit margin and business risk of the company.

iii)   Analysis of the financial risk of the company.

iv)   Analysis of the systematic risk of the company over the last 5 years.

v)    Analysis of profitability ratios (ROA and ROE).

vi)   In the light of the above analysis, highlight the key risks and what sort of actions management should take to manage it.

In this section, students are expected to undertake trend and comparative analysis of the key ratios that highlight any aspect of risk.

 

  1. Analysis of the company’s capital structure and its cost of capital.

                                                                                       (10/100)

 

  1. Analysis of the company’s value using;                                     (35/100)

a)    Net Asset Value Approach

b)    The Dividend Valuation Model                                        

c)    The Price-Earnings Ratio approach                                

d)    Rappaport’s Shareholder Value Model

 

  1. Analysis of the company’s dividend policy.                                 (5/100)

 

 

 

Please choose any one of the following companies.

 

Petrofac, Chevron, Marks & Spencer, Next

 

 

Submission Date: 04-07-2017

 

 

 

PLAGIARISM

“Plagiarism is the practice of presenting the thoughts, writings or other output of another or others as original, without acknowledgement of their source(s). All material used to support a piece of work, whether a printed publication or from electronic media, should be appropriately identified and referenced and should not normally be copied directly unless as an acknowledged quote. Text translated into the words of the individual student should in all cases acknowledge the source.”  For further information please see

http://www4.rgu.ac.uk/energy/induction/page.cfm?pge=48530

 

Before submitting assignments, you should check through it to ensure that:

 

·           all material identified as originally from a previously published source has been properly attributed by the inclusion of an appropriate citation in the text;

 

·           direct quotations are marked as such (using “quotation marks” at the beginning and end of the selected text), and

 

·           full details of the reference citations have been included in the list of references (in Harvard format).

 

NOTE

Coursework received late, without valid reason, will be regarded as a non-submission (NS) and one of your assessment opportunities will be lost.

 

If the word count of an assessment is considered critical, then this will be reflected in the assessment criteria for that assessment together with any consequent penalties.  

 

Students are encouraged to review their work using the JISC Plagiarism Detection Service (Turnitin).

 

Extensions:

 

If an extension is sought, then the Coursework Extension Request Form must be completed prior to the submission deadline, and submitted through your RGU email account to your School. Your School’s email address can be found at:

 

http://www.rgu.ac.uk/about/schools-and-departments/administration-and-support/governance-and-academic-quality/quality-assurance-and-regulations/academic-regulations-student-forms/academic-regulations-student-forms/.

 

Supporting evidence should be scanned and included with the email.

 

 

Text Books 

The following ebooks are available in RGU Library.

 

Berk and DeMarzo, “Corporate Finance – The Core”, 3rd edition, Pearson Education Inc. 

                               

Arnold, G., “Corporate Financial Management”, 5th edition, Pearson

 

Lumby and Jones, “Corporate Finance, Theory and Practice” 8th edition, SOUTH-WESTERN CENGAGE Learning

 

Pike and Neale, “Corporate Finance and Investment, Decisions and strategies 6th edition, FT – Prentice Hall

 

Other Textbooks

Brealey, Myers and Allen, “Principles of Corporate Finance” 11th edition, McGraw Hill