Reference no: EM131130030 , Length: word count:3500
Assignment Brief
As part of the formal assessment for the HNC/D programme you are required to submit an assignment for each module. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.
After completing the module you should be able to:
- Understand the sources of finance available to a business
- Understand the implications of finance as a resource within a business.
Be able to make financial decisions based on financial information LO4. Be able to evaluate the financial performance of a business
Assignment Task One
In no more than 1,000 words, write a critical discussion, supported by academic literature, addressing the following for a PUBLIC LIMITED COMPANY:
a) Explain why financial planning is important in assessing the finance needs of a business.
b) Identify and evaluate both long term and short term sources of finance for a project implemented by a public limited company. Offer definitions, and assess the advantages and disadvantages for each of the sources you identify and when each would be most appropriate.
c) Analyse the costs associated with different sources of finance and explain how these costs impact the financial statements
d) Assess the financial information needs of three stakeholders - such as owners or financial institutions
Assignment Task Two
Poole Ltd is considering investing some of their capital in new premises. This will entail capital expenditure of some £1,000,000. This new project is set to last for ten years and is likely to attract the following budgeted inflows (money coming into the business) and budgeted outflows (money going out of the business):
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Years
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Cash Inflows
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Cash Outflows
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|
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£'000
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£'000
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|
0
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0
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1000
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|
1
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110
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30
|
|
2
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120
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35
|
|
3
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130
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40
|
|
4
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140
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45
|
|
5
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150
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50
|
|
6
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160
|
55
|
|
7
|
170
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60
|
|
8
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180
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65
|
|
9
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190
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70
|
|
10
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200
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75
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Note the £1 m in year 0 represents the initial capital expenditure.
The business is built up of both equity and debt, and in terms of this specific project it would be funded by £500,000 equity requiring 12% return, and £500,000 of debt requiring 8% return.
In no more than 1,000 words, and using the information above, complete the following:
a) Identify the Net Value or the Net Cash Flow (before applying the discount factor) of the project and also the Net Present Value (after applying the discount factor). Analyze and explain the advantages and disadvantages of the techniques adopted here.
b) Identify the Undiscounted Payback period and the Discounted Payback period and evaluate whether the pricing strategy that has generated the inflows is viable in this scenario
c) Assess whether Aston Ltd should continue with this project. Ensure that where possible your answer is supported by academic sources.
Assignment Task Three
In no more than 1,500 words:
a) Identify and discuss the purpose of the two main financial statements shown below for J D Wetherspoons plc.
b) Evaluate why different formats of financial statements are used for different types of business.
c) Using the financial statements detailed below, for J D Wetherspoon plc, calculate a series of profitability ratios and liquidity ratios, analyze and interpret the results that you achieve and comment on the company's performance.
Word Count/ Number of Pages 3500
Reference Style Harvard
Number of References 10
Attachment:- Statement.pdf
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