7 Recommendation/Conclusion Based on your team’s analysis, explain to the potential investor why/why not the company is a worthwhile investment. Using all the information researched, provide a comprehensive argument to support your recommendation. 10 marks 8 Appendix: Evidence of Annual Report and other relevant company information (e.g. current share price from newspaper). APA reference list 5 marks Total: 100 marks

6 CLO5.2 CLO5.3 CLO5.1 CLO5.4 Capital Structure Examine and evaluate the capital structure of the company for the current year. Examine any changes in capital structure between the previous year and current year. Evaluate the current market value of the company’s shares. 6.4 How does the current market share value compare with the share values contained in the Annual Report? Discuss possible reasons for the difference. What was the capital cost to the organisation? How does this compare to the previous year? Explain possible reasons for the comparison. Explain to the investor the risks and impact to the company associated with capital budgeting. Decide upon a new project/asset that the company may undertake/purchase. Using your informed assumptions, calculate the expected net cash flows for the next five years. Using your informed assumptions and the time value of money calculate the present value and future value of those net cash flows for the new project/asset in 6.6. Explain to the investor, the concept of a risk adjusted discount rate and portfolio risk in the context of the capital budgeting process. 25 marks

5 CLO4.1 CLO4.2 CLO4.3 CLO4.5 CLO4.5 CLO4.4 Working Capital & Current Asset Management Examine the organisations asset growth and patterns of short and long term financing. Include in your analysis the movement in finance costs between the current year and previous year. Explain how this finance has impacted on asset growth between the two years. Discuss how the organisation manages its financing costs. Examine the company’s cashflow cycle, collections and disbursements by explaining how the company manages its accounts receivables and account payables. What is the company’s credit policy? Does the credit policy seem reasonable given the nature of the industry the organisation operates in? Using the current financial statements as a guide compare and discuss the movements in working capital between the current year and previous year. Explain to the investor the different sources of short term financing available to the company. 15 marks

4 CLO3.1 CLO3.3 CLO3.2 CLO3.4 Financial Forecasting & Financial Leverage Based on the financial and non-financial information contained in the Annual Report and using the percent of sales method, prepare the following for the ensuing year (You may make informed assumptions where needed.) a. Pro forma Income Statement b. Pro forma Balance Sheet c. Pro forma Cash Budget Discuss what information was used to prepare the above reports in 4.1, including any assumptions used. Evaluate the benefits and purposes of developing pro forma statements and cash budget for your selected company. Evaluate the leverage of your selected company using ‘Break Even Analysis’. 15 marks

3 CLO2.1 CLO2.2 CLO2.3 CLO2.4 Analyse the financial position of the firm using financial analysis ratios Analyse the financial statements of the company using horizontal and vertical ratio analysis (profitability, liquidity, asset utilisation and debt utilisation). Analyse the financial statements for the current year and previous year using the Du Pont model. Analyse whether the company has performed better in the current year or previous year. Why? 3..4 What are the main reasons for the improvement/deterioration based upon the ratio analysis? Analyse the impact inflation/deflation could have on the financial health of the company. Graphical display a trend analysis for sales, EBIT and net profit for five years. (This information will be available in the latest Annual Report). Briefly discuss the reasons for the movements over the five-year period. 20 marks

1 Title page & table of contents 5 marks 2 CLO1 Introduction Company’s financial management goals and objectives Company’s products, market, suppliers, size and ethos Company’s approach to corporate governance and social responsibility 5 marks

• Projects submitted after the due date will incur a 10% penalty on the total marks gained on that assessment, for each week (FIVE (5) working day period) or part thereof, it is late. • The maximum penalty for late assignments/projects is 20% i.e. TEN (10) working days. • After TEN (10) working days the Academic Director will have sole discretion as to whether the assignment/projects is accepted. • Please Note: You must provide a valid reason within FIVE (5) working days for late submission, based upon circumstances beyond your control e.g. severe illness, mental trauma or any other exceptional circumstance beyond a student’s control. (Refer to Impaired Performance – Aegrotat Considerations). • No consideration will be given to late assignments/projects, after the last teaching day of the course (this excludes exam weeks).

All projects must be submitted on or before the due date. All submissions must be in MS Word Format. All submissions must be uploaded to Plagscan (Plagiarism Checker) to check for duplicated text in assignments, papers, websites and more. • All submissions must be accompanied by the Plagscan Report as evidence that the assignment has been checked for plagiarism. • All submissions must be emailed or uploaded in accordance with the facilitator’s instructions.

• You are required to work in groups of 3-4 students. • It is expected that you all work as a team and provide solid and equal contributions. • 15% of the total group mark will be subjected to a Group Evaluation process. The purpose of this form is to rate the overall quality of your own and your fellow Group Project members’ work. Your facilitator will use it to evaluate each member contribution. The idea is to encourage solid individual participation in a group work. If participation of any student is not satisfactory then he or she will lose marks in a group project report. Please see the Peer Evaluation Form. • It is important that you consult with your facilitator in advance to discuss any issues relating to your group project. • Please use the Research Consent Declaration Form to gain consent from any participants you collate data from. This ensures you understand and adhere to the ethical use of participants’ information.

To conduct research and explore issues related to financial management. The final output will be an Investors Financial Management Business Analysis Report based upon the project findings. The students will present their findings in the form of a group report and an individual oral presentation.