Assignment Question

Select a non-financial company listed on the London Stock Exchange in 2023 that you like and use the company as a case to answer the following questions:

Question 1

(a) Describe the types of finance used by the company and the sources from which the finance was obtained.

Use data from recent annual reports of the company, and other sources, to support your answer. (40 marks)

(b) Critically discuss the extent to which the financing strategy of the company is consistent with finance theories and recent research evidence.

Support your answer with relevant theoretical and empirical research evidence from the literature. (60 marks)

[Total = 100 marks]

Module Learning Outcomes

The learning outcomes of the module are as follows:

Students who complete the module successfully should -

(a) Understand and apply the concept of time value of money.

(b) Be able to appraise project investment proposals and critically evaluate the effects of investment decisions of firms on their market values under certainty and uncertainty.

(c) Understand and apply techniques of valuation of stocks, bonds and options.

(d) Be able to assess the potential impacts of financing and dividend decisions of firms on their costs of capital and market values. The students should also have critical knowledge and understanding of the capital structure and dividend policy literatures.

(e) Be able to critically apply a range of asset and option pricing models and know their strengths and limitations; and

(f) Be able to assess efficiency of financial markets; and demonstrate critical knowledge and understanding of the key issues in the mergers and acquisitions, behavioural finance and digital finance.

This assignment will be used to assess learning outcome (d) stated above.

Grading Criteria

The criteria that will be used to mark the assignment are as follows:

Feedback to students

Both formative and summative feedbacks will be given to encourage students to reflect on their learning that feed forward into the next assessments.  The preparation for all assessments will be supported by formative feedback within the tutorials/seminars. Written feedback will be provided as appropriate.  When checking the feedback on your assignment, please use the browser, rather than the Canvas App, in order to see all comments on your assignment.