Financial Planning Concepts and Investment Strategy: Case Study of Residential Properties PLC

Referencing and Disclosure Requirements

Referencing: In the main body of your submission you must give credit to authors on whose research your work is based. Append to your submission a reference list that indicates the books, articles, etc. that you have read or referred in order to complete this assignment (e.g. for books: surname of author and initials, year of publication, title of book, edition, publisher: place of publication). 

All assignments must reflect the theories, models and frameworks associated with the subject matter. It is critical that the student reflects this in the submission and accordingly students must give credit to the authors of the theories, models and frameworks. The Harvard system of referencing is required throughout and needs to be adhered to rigidly.  

Disclosure: 
Please include the following statement on the title page of the submitted assignment, followed by your name and date I declare that this assignment is all my own work and that I have acknowledged all materials used from the published or unpublished works of other people. All references have been duly cited.

Turnitin: All assignments must be submitted to Turnitin unless otherwise instructed by the Lecturer Late submissions will not be accepted unless previously granted under the Mitigating Circumstances Policy Learning Outcomes tested (from module descriptor).

Assessment Criteria To achieve each outcome a student must demonstrate the ability to:
•    Demonstrate the following knowledge and understanding
Of financial accounting reports and strategies and key concepts and comparative models, and their relationship to financial strategy and decision making within businesses and organisations.

•    In this assignment, part 01 will enable the students to demonstrate their knowledge and understanding in financial planning concepts, contexts, policies, applications and opportunities faced within organisational life cycles. 
•    Demonstrate the following skills and abilities
Identify, analyse and evaluate financial business and enterprise positioning within the contexts of corporate investment, asset management, decision making and strategy, and economic, legal and tax environments.
•    In this assignment, part 01 provides the student with the opportunity to demonstrate skills and ability to analyse and evaluate investments, financial sources, corporate strategy and finance. 
•    The second part of the assignment will give the opportunity to demonstrate skills and abilities company valuation and capital market positioning. 

Residential Properties PLC is a well-recognized listed company, operating in the construction of residential property. It is currently financed principally by equity. Its board of directors is currently considering purchasing all the shares of an unlisted company, which will allow it to expand into a new geographical region. The price being asked by the shareholders of the unlisted company equals about 25% of market capitalisation.

The scale of the investment is such that RP plc could not raise the cash from internal sources. A decision now needs to be made on the method of funding. The directors are not sure which method of funding best suits the RP plc.

Required:
1. Recommend four alternative methods of funding to the board of directors of RP plc debating critically the reasons for using each of these methods of funding. All the relevant factors must be explained and placed clearly in the context of the particular circumstances of RP plc.
2. Provide an insightful analysis with regard to the link between the above financing decision and investment decision relating to the acquisition of the unlisted company.