Financial Analysis Report
Financial Management
The Assignment will cover the following Learning Outcomes:
LO2 Analyse financial and non-financial information related to problems in finance
and to distinguish relevant from non-relevant information and to compare,
select and apply appropriate decision making techniques.
LO3 Critically review the validity of arguments in support of theoretical models and
investigate contradictory evidence.
LO5 Debate issues in finance and produce reports that communicate effectively in
an appropriate format
The Task:
Assume that you hold the position of a financial analyst in a large consulting firm. Your remit includes advising Tesco company clients on their gearing and dividend policies.
You are required to prepare a report in response to the following task.
Analyse gearing and dividend of Tesco company during the past 5 years. The analysis should include a critical evaluation of the gearing and dividend policies of the company in the light of its corporate objectives, relevant theories, and industrial sector practice.
1500 words
Additional Guidance
1. Information concerning the sources of finance can be found in the
balance sheet and in the notes to the accounts of your chosen company.
2. Notes on Report Writing
A report is a document, which systematically and objectively presents specific information as accurately as possible to a specific reader. It may be of varying length, and may be used to inform, persuade, explain, or to record the results of a project. Some reports contain recommendations for further action.
Structure
Title Page
Title, submission date, name and position of the writer, name and position of the recipient.
Contents
List of contents
List of illustrations
List of figures
List of appendices
Summary (Abstract)*
An outline of the report's scope and its most important findings, conclusions and recommendations.
Term of Reference
A statement of the topic and purpose of the report, the identity and position of the writer, the identity and position of the recipient and the submission date.
Procedures of Investigation
These are the methods used to obtain information. They are written in impersonal form to demonstrate objectivity. The three methods of finding information are: (i) observation, (ii) consultation of documents, (iii) interviewing. The information must be analysed before being used in the main body of the report.
Financial Management AC60062E
Introduction *
A summary of the background to the report which puts the topic and investigation in context.
Findings/ Analysis of information
Information organised into logically ordered sections so as to answer the problem or purpose stated in the terms of reference. Headings, sub-headings and numbers are used. These must be recorded accurately on the contents pages.
Discussions/Conclusions*
A discussion and interpretation of the findings according to the purpose of the investigation as stated in the report's terms of reference.
Recommendations
Suggestions for future action or further study (if these have been requested in the terms of reference).
Appendices*
Pages containing additional information which is not properly part of the main report, but supports findings. Tables, statistics and quotations are often included here. Material is sorted into distinct topics and presented as Appendix A, Appendix B, etc.
Acknowledgements*
Financial Management AC60062E
References
A standard method of citation should be used.
[items with asterisk are not found in every report but should be included in your report]
Financial Management AC60062E
3. References and Bibliographies
Wikipedia and Investopedia are not permitted as sources of information for the coursework
You are expected to show the reader of your report the following:
the source of the information you quote,. the source of any material you quote.
You do this by giving clear references in your work and providing a bibliography at the end. There are standard procedures for this and they are very easy to follow.
Listing Books in a Bibliography
Give the author's name, date of publication (in brackets), the title (underlined and followed by a full stop), the place of publication (followed by a.) and the publisher.
Arnold, G. (2001), Corporate Financial Management. London:Financial
Times Publishing
Listing Articles from Journals or from Edited Collections in a Bibliography
Give the author's name, the date of publication (in brackets); put the article title in quotation marks; then give the name of the collection or journal, underline it, the details page and volume numbers (where relevant), the place of publication and the publisher (where relevant).
Smith, P. (2005) "Camel Trekking" in Travellers' Tales, vol. 4, pp 26-30
Bloggs,J. (2015) "Ant Training" in The Best Animal Stories, ed.
Financial Management AC60062E
Klein,K, London: OUP
Quoting Directly from Source Material
If you quote one sentence from your source, then you can put it in quotation marks between your own sentences. There is no need to indent anything or drop a line or to space the text differently from the rest.
If you quote more than one sentence from source, it is best to separate this material from your own by indenting it on both sides.
Financial Management AC60062E
MARKING SCHEME
Report format 10 marks
Gearing & Dividend policies of the company for the past 5 years. 20 marks
The ability to extract and analyse data from a variety of sources to
elucidate the argument 20 marks
Empirical evidence debating various gearing/dividend theories 30 marks
Identification of Corporate objectives 5 marks
Identification of Industrial sector gearing ratios and dividend ratios 5 marks
Coherent and logical conclusion and proper citation of references 10 marks
