Introduction to Part 2 and Part 3

For part 2 and part 3 of the assessment you should select a company listed on the main market of the London Stock Exchange. You should ensure that you have access to the company’s most recent annual report. This company will be used for your evaluations in part 2 and part 3. Once you have selected your company you should register this with Cath as students will not be allowed to evaluate the same company.

Part 2: Long Term Finance         Max 1500 words 35%

Presentation of your work:

Your discussion for part a and part b below should be presented professionally in a report format in a word document, and fully referenced within the text where appropriate, in accordance with the Brighton Business School Referencing Handbook. Your calculations for part b can be included within the word document, unless you prefer to use excel.

Requirements:

a)       Analyse the long-term financial structure of your company and critically evaluate the usefulness of capital structure theory in understanding the company’s financing decisions.

b)     Calculate an estimate of your company’s cost of equity using the Capital Asset Pricing Model (CAPM). You should clearly explain any assumptions made and ensure that you carefully explain and reference all the information used within your cost of equity calculation.

Assessment Criteria for Part 2

·         How has the long-term financial structure of the company been analysed? Over what time frame? Has the analysis been correctly interpreted?

(5 marks)

·         Has a broad range of capital structure theory been discussed? Does the discussion demonstrate a clear understanding and critical evaluation of the different theoretical perspectives with regards to capital structure? Has this been applied to the company to explain the capital structure? Has the theory been evaluated in terms of its usefulness in understanding the company’s capital structure?

(15 marks)

·         Has the CAPM been used appropriately? Have any assumptions made been clearly explained? Has all the information used been clearly explained and referenced?

(7 marks)

·         Is the work presented professionally in a report format? Are the calculations clearly presented and the information appropriately sourced? Is the discussion appropriately referenced?

(8 marks)

Please check attached file for complete details. I need high quality work. don't miss any instrructins. so please read it carefully. NO plagiarism please