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FIN3160 Coursework 2023-24

Introduction

Submission is by upload to Turnitin portals on the module website. Submission should be in the form of a Word document. Feel free to undertake computational work in Excel. But the coursework submission should be in the form of a report using Word.

Neither hard copy submissions nor files emailed to tutors will be considered valid submissions. There will be no exceptions to this rule, so do not ask.

You can obtain feedback on work-in-progress up to the task deadline. However, feedback is restricted to one meeting per student per task.

Task 1

Task 1 focuses on producing a three-year holding period return on a single company investment and a ratio analysis of the same company.

In the Task 1 folder online, you will find the names of five companies listed on the London Stock Exchange (LSE). They will be from the FTSE350 Index of UK companies.

Task 1 focuses on one company from your five (The set of five is relevant to Task 2, which is due for submission in March 2024). One of your assigned companies will be colour-coded. This is the company that you will analyse for Task 1. Do not choose a different company.

1a. Holding Period Return

To tackle Task 1a, start from the position where you invested £10,000 in the company on Friday 2^nd October 2020. The core aim is to calculate the three-year holding period return to Monday 2^nd October 2023. The return calculation must incorporate dividend payments, treated as being reinvested in additional shares in the company at the opening share price on the dividend payment date.

To undertake task 1a, you will need to assemble company data, especially:

· The opening share price on Friday 2^nd October 2020

· The dividend payments during the period, together with the payment dates

· The opening share prices for your company for each of the dividend payment dates.

· The opening share price on Monday 2^nd October 2023

For guidance on searching for the data, consult the learning materials for the first six topics. In addition, the lecture session scheduled for Monday 7^th November 2023 will be an ‘how to tackle’ Task 1.

It is of utmost importance that the essential data is presented in an organised, easily understandable, manner. Likewise, all calculations of must be shown; answers without demonstration of the inputs will incur penalties (even if they are correct). As stated earlier, the onus isn’t on me the marker to search your work for the inputs. It is on you to organise the presentation of your analysis in a manner suited to being easily understood.

There is no need for extensive generalised narratives. The written aspect should focus on outlining each step in your analysis and summarising the key outcomes. (12 marks)

1b. Company Ratio Analysis

Undertake a ratio analysis of the company that includes the following ratios:

· Return on equity: The net income and shareholder’s equity information should be sourced from the company’s latest annual report.

· Earnings per share: The number of issued shares should be sourced from the company’s latest annual report

· Price to Earnings Ratio: Use the share price (opening or closing) on 2^nd October 2023

· PER to Growth Ratio: On the Hargreaves Lansdown website, open the trading page for your company. Click on the Financials tab and scroll to Earnings Per Share. Focus on the Adjusted EPS and, using the two most recent annual figures, calculate an EPS growth rate. Use this and your PER ratio to calculate the company’s PEG.

Provide a brief analysis on whether you think the EPS growth figure is a meaningful estimate of how the company’s future earnings are likely to evolve.

· Dividend Yield: Sum the dividend payments for the year to 2^nd October 2023 and use it to calculate the dividend yield on that date.

· Price to Book Value: Calculate the company’s book value per share based on the value of equity in the latest annual report. Using the share price on 2^nd October 2023, derive the price to book value.

Provide a brief analysis on the scale of the PBV ratio and what it might indicate about the current share price.

Arrange the work in a manner that each ratio is clearly delineated. As with 1a, ensure that the data inputs for the ratios are properly specified in terms of sources. Scruffily organised work, regardless of content, will incur penalties.

Summarise the results for each ratio; don’t simply leave numbers hanging. Where there is a requirement to analyse an outcome, keep it brief. As a rough indication, 200 words should suffice for each analysis. (13 marks)

(Total marks 25)

Late submission and deferral

Non-submission or late submission of any one of the three tasks will be treated as failing that task only. Any later resit will be subject to University regulations on capped marks. Capping applies only to resit tasks. Other tasks submitted within deadline will not be capped.

You may, in accordance with University regulations, apply for an extension to a submission deadline due to mitigating circumstances. However, do be aware that with the staged submission process, you risk delays to completion of one task undermining efforts to meet deadlines for subsequent tasks. In addition, the ability to provide feedback on work-in-progress may be affected.

Please do not hesitate to get in touch to discuss any concerns you have about assessment deadlines.

Marks and marking criteria

The coursework in its entirety is marked out of 100. The task breakdown is:

Note, as with other modules, the minimum element mark is 30%. You pass the module if each element scores at least 30% AND the overall weighted average is at least 40%. This means, to cite one possible scenario, that if your overall average exceeds 40% but one element is under 30%, you fail the module and will need to resit the below 30% element.

A coursework marking rubric can be found on page 15 of the Handbook. It characterizes the intellectual qualities associated with different grades.

The guidance for each task is precise. The elements will be considerably easier to negotiate if you pay close attention to the guidelines. A rushed, inattentive, read is likely to result in silly errors and time wasted on producing irrelevant material that generates no marks.

Common Mistakes to Avoid

· Reading into elements of each task, things that are not there. There are no trick questions lurking. If something sounds routine, more than likely it is routine. If you have been attentive towards the learning material and classes, if you pay close attention to task guidelines, you will be comfortable in the search and handling of the necessary numerical work.

· Incorporating lengthy tracts of generalised, textbook-style, writing about concepts that feature in the work. This will be a time-consuming distraction for you, and will earn zero marks.