Question
The suggested structure and indicative content of the assignment: Part 1 Introduction: Make company choice defense, identify project aims and objectives, state the problem or
The suggested structure and indicative content of the assignment:
Part 1 Introduction: Make company choice defense, identify project aims and objectives, state the problem or current situation facing the company. Provide organizational context including the corporate history, background, company description (the ownership structure, sources of finance, corporate control, corporate governance). [LO1: 20 marks]
Part 2 - Capital budgeting and Corporate Capital Structure: Estimate the companys cost of capital (component costs and WACC) and the percentage return on capital employed (accounting ROCE). Explain how the return compares with the cost of capital. Critically evaluate the capital structure and the dividend policy of the company. [LO2, LO3: 20 marks]
Part 3 - Working capital management: Evaluate the effectiveness of the working capital management policy of the company. Assess the liquidity position of the company.
Part 4 Risk Management: Analyze the major risks that have been facing the company and critically examine how they are managed. [LO2, LO3: 20 marks] [LO4, LO5: 20 marks]
Part 5 - Conclusions and recommendations. Summaries the findings and benchmark them against relevant concepts and theories. Develop recommendations to management for further actions / investment decisions / acceptance of the project. Both financial and non-financial reasons should support the recommendation. [LO4, LO5: 20 marks]
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