7WBS2009 Assignment Brief
| Module Title: | Financial Management and Analysis |
Module Code: | 7WBS2009 |
|---|---|---|---|
| Assignment Format & Maximum Word count | Case Study Business Report (2000 works +/-10%) |
Assignment weighting | 60% |
| Assignment Title: | Individual Report |
Assessment Criteria
Learning Outcomes: Knowledge and Understanding assessed in this assignment:
- Evaluate the financial requirements of a business or project and advise on the financing choices available to organisations (including the relevance of capital structure and the rewards expected by providers of finance).
- Evaluate financial and operating risks (both domestic and international) faced by organisations and the strategies for mitigating those risks
- Appraise corporate governance and ethical issues which might arise in relation to accounting and financial management.
Learning Outcomes: Skills and Attributes assessed in this assignment:
- Communicate effectively with financial and non-financial managers on financial issues
- Present ideas confidently and effectively on financial issues
- Apply appropriate software to the solution of financial problems
- Apply a range of alternative techniques to monitor and manage business performance.
Detailed Brief for Individual / Team Assignment
Description of the assignment, task, content and structure:
You are working in an investment company called Gamma as a financial analyst. Gamma is a public company which has grown in recent years by acquiring established businesses.
The company has funds available and has narrowed the choice of investment for two companies Alpha plc and Beta plc.
The financial data about the two companies Alpha and Beta is shown below. They operate in the same industry sector and Gamma believes their shareholders would be receptive to a takeover.
An indicative price for 100% acquisition of the companies is $12 million each.
The company’s normal strategy is to invest in companies that have low price/earnings ratios but appear to be in good shape financially.
The two companies belong to the same industry and the data provided are from their 2023 annual reports
|
| Statements of financial position as at 30 September 2024 | ||||
|---|---|---|---|---|
| Alpha | Beta | |||
| $’000 | $’000 | |||
| Non-current assets | nil | 3,000 | ||
| Property ( refer to note (a) for breakdown) | 4,800 | 2,000 | ||
| Owned plant | nil | 5,300 | ||
| Total | 4,800 | 10,300 | ||
| Current assets | ||||
| Inventory | 1,600 | 3,400 | ||
| Trade receivables | 1,600 | 5,100 | ||
| Bank | 1,100 | 200 | ||
| Total Current assets | 4,800 | 8,700 | ||
| Total assets | 9,600 | 19,000 | ||
| Equity and liabilities | ||||
| Equity | ||||
| Equity shares of $1 each | 1,000 | 2,000 | ||
| Property revaluation surplus | nil | 900 |
| Retained earnings | 1,600 | 2,700 | ||
| Total equity | 2,600 | 5,600 | ||
| Non-current liabilities | ||||
| Finance lease obligation | nil | 4,200 | ||
| 5% loan notes (31 December 2016) | 5,000 | nil | ||
| 10% loan notes (31 December 2016) | nil | 5,000 | ||
| Total Non-Current Liabilities | 5,000 | 9,200 | ||
| Current liabilities | ||||
| Trade payables | 1,250 | 2,100 | ||
| Finance lease obligation | nil | 1,000 | ||
| Taxation | 750 | 1,100 | ||
| Total Current Liabilities | 2,000 | 4,200 | ||
| Total equity and liabilities | 9,600 | 19,000 | ||
| Notes | ||||
| (a) | Carrying value of plant: | |||
| Alpha | Beta |
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