FIN6013 Finance for Managers
Task:
Course Objectives:
On completion of this subject, students are expected to be able to:-
1.Analyze and evaluate the essential concepts of financial management and corporate financial performance and develop competencies in applying strategies and solutions to various problems.
2. Apply theoretical concepts and framework to a range of financial management issues and financial management strategies to meet business objectives and evaluate options of decision making in financial management.
3.Explain and critically evaluate the role of accounting information and fundamental accounting concepts in a business context and use the concepts of cost, price and investment opportunity in the context of financial decision-making.
4. Evaluate budgeting as a management control system within a company and alternative sources of short term and long term sources of finance available to a business organization.
Decision Making on Capital Budgeting
This assignment is to perform a corporate capital budgeting analysis. You are required to select TWO projects (refer to appendix 1) and analyse the company projects to enable the CFO to make an objective recommendation. Please refer to the following requirement
You are required to:
1.Justify your selection of your two projects.
2.Evaluate the following of the selected project.
(i)payback period,
(ii)discounted payback period,
(iii)Net present value
(iv)internal rate of return,
(v)modified internal rate of return,
(vi)profitability index
3.Criticize your judgements and make recommendations to the top management of the two new projects.
4.Analyse FIVE (5) macroeconomic factors and FIVE (5) microeconomic factors that will affect the decision-making on capital budgeting based on the above project.
5.Analyse FIVE (5) decision-making based on the optimum cost of capital.
Fund Raising of Bond and Share
1.Criticize your judgements and make recommendations to the top management of the fund raising via BOND or SHARE for the future new projects.
2.Analyse the FIVE (5) implications of fund raising either from bond or share to the company performance.
