Module Code: M179LON

Module Title: Finance for modern managers

Word Count: Maximum 3,000 words (excluding references and appendices)

Learning Outcomes Assessed by this Assignment:

MLO1 Evaluate the financial management position of a business using appropriate performance measures.

MLO2 Critically analyse the sources of finance together with the merits and demerits of each.

MLO3 Develop a plan to improve the firm’s sustainability both financially and non-financially.

MLO4 Analyse the financial theory to advice on the profitable and efficient utilisation of the company’s assets.

MLO5 Critically apply financial management techniques to deal with critical financial problems identified.

MLO6 Critically assess the tools and techniques of financial management and control.

Assignment Tasks Details:

You are required to research and analyse a real public-listed firm on LSE of your choice, addressing issues as described in specific guidelines relating to the assignment task, in conjunction with the marking rubric. This is an individual assignment, which will require the creation of a Financial Business Plan with simple financial model in Excel, based on a case study and on the analysis of a real public-listed firm on LSE you choose.

Please note that no two students are to choose the same company from the same group. The choice of company is on a first come first served basis, therefore soon as you have decided your choice of company, inform your module tutor accordingly.

For formative assessment, students should present their progress within the Assessment and Feedback sessions.

Tasks

In the context of the company you have chosen, prepare a Financial Business Plan to:

1) Include a financial ratio analysis using data in the financial statements of the chosen company. Comment on profitability, liquidity, debt and asset activity ratios. Detailed calculations should be included in an appendix; include key findings in a table in the body of the text.

2) Provide financial projections for the company, using alternative assumptions to identify the areas that warrant consideration or potential revisions. Use Excel spreadsheets to model the financial projections.

3) Include a breakeven analysis using appropriate assumptions based on the business context of the chosen company.

4) Critically evaluate the appropriate main sources of finance for the company whether through debt or equity and discuss their requirements for financial projections, advantages, disadvantages and suitability. Include citations for literature review where appropriate.

5) Based on your analysis, discuss whether the company would be better off to go for debt or equity financing, if it would like to expand its business.