Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Referral Deferral Coursework Module Title: Corporate Financial Management Module Code: SENCEOO7W Module Status: Core, BA Business Management Finance Pathway Assessment Weighting: 25% In Module Assessment:

image text in transcribed
image text in transcribed
Referral Deferral Coursework Module Title: Corporate Financial Management Module Code: SENCEOO7W Module Status: Core, BA Business Management Finance Pathway Assessment Weighting: 25% In Module Assessment: Individual coursework Submission Date: 12 July 2021 Where to Access Mark & Feedback: Module Blackboard Site Feedback Method: Mixture of Formative and Summative Assessment Feedback. Students receive comments on their ability to link theory into practice in terms of applying and interpreting "Shareholder Value Analysis to a selected company. Assignment Outline: The assignment is an individual report on shareholder value analysis of an approved listed company. The company chosen should be one of the top 350 listed UK companies in the London Stock Exchange. Coursework Assignment Outline: Assume that you are working in the corporate financial advisory services department of a large investment bank and your director (who has read extensively about shareholder value analysis) has asked you to prepare a shareholder value analysis report on your chosen company using the following basis for your valuation: Planning period is to be set at five years A residual value based on constant cash flows from year five onwards (infinite life) will be estimated at the end of this five year period Beta factor to be obtained using current information held on DataStream or other sources FTSE All-share return to be taken as 8% Risk free rate to be taken as 3% The target capital structure to be set based on the company last financial year (preferably 2020) The gross cost of debt over the financing period is to be estimated at 4% per annum As for the other key value drivers (forecast sales growth rate, operating margins, tax rate, incremental working capital requirements and incremental fixed asset investment) you are required to decide these yourself. The director has advised you to review the latest annual report and accounts of your chosen company and use the data therein and other financial journalistic analysis and intelligence that you consider appropriate to help you decide upon the growth levels of your chosen drivers. Required: . 1 Page Using the information on certain key drivers already given above together with the other key driver figures decided upon by yourselves, prepare a spreadsheet based shareholder value analysis model to determine a purchase price for your chosen company. A short report explaining how the valuation method works and the purpose of each stage in the spreadsheet calculations should support the model. (Marks allocated: 100% - 1000 words excluding appendices) Referral Deferral Coursework Module Title: Corporate Financial Management Module Code: SENCEOO7W Module Status: Core, BA Business Management Finance Pathway Assessment Weighting: 25% In Module Assessment: Individual coursework Submission Date: 12 July 2021 Where to Access Mark & Feedback: Module Blackboard Site Feedback Method: Mixture of Formative and Summative Assessment Feedback. Students receive comments on their ability to link theory into practice in terms of applying and interpreting "Shareholder Value Analysis to a selected company. Assignment Outline: The assignment is an individual report on shareholder value analysis of an approved listed company. The company chosen should be one of the top 350 listed UK companies in the London Stock Exchange. Coursework Assignment Outline: Assume that you are working in the corporate financial advisory services department of a large investment bank and your director (who has read extensively about shareholder value analysis) has asked you to prepare a shareholder value analysis report on your chosen company using the following basis for your valuation: Planning period is to be set at five years A residual value based on constant cash flows from year five onwards (infinite life) will be estimated at the end of this five year period Beta factor to be obtained using current information held on DataStream or other sources FTSE All-share return to be taken as 8% Risk free rate to be taken as 3% The target capital structure to be set based on the company last financial year (preferably 2020) The gross cost of debt over the financing period is to be estimated at 4% per annum As for the other key value drivers (forecast sales growth rate, operating margins, tax rate, incremental working capital requirements and incremental fixed asset investment) you are required to decide these yourself. The director has advised you to review the latest annual report and accounts of your chosen company and use the data therein and other financial journalistic analysis and intelligence that you consider appropriate to help you decide upon the growth levels of your chosen drivers. Required: . 1 Page Using the information on certain key drivers already given above together with the other key driver figures decided upon by yourselves, prepare a spreadsheet based shareholder value analysis model to determine a purchase price for your chosen company. A short report explaining how the valuation method works and the purpose of each stage in the spreadsheet calculations should support the model. (Marks allocated: 100% - 1000 words excluding appendices)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Insights Into The Effectiveness Of Internal Audit

Authors: Rainer Lenz

1st Edition

3659852414, 978-3659852411

More Books

Students also viewed these Accounting questions

Question

Find the equation of the tangent line y = (x2 + 1)-2 at (1, ).

Answered: 1 week ago

Question

1. Describe the factors that lead to productive conflict

Answered: 1 week ago