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Report on Financial Strategy and Dividend Policy of FTSE 100 Companies

   

Added on  2019-09-22

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Msc. Management (Finance): Level 7Total Word Counts: 3,5002.1 Assessment BriefPlease read the article entitled “Dividend Security” from Canaccord Genuity WealthManagement, and the related article “Safe haven Vodafone among FTSE 100 companies at risk ofdividend cuts” from the Daily Telegraph on 7th May 2016 which can be found here:http://www.telegraph.co.uk/investing/shares/safe-haven-vodafone-among-ftse-100- companies-at-risk-of-dividend/Choose ONE company from the companies that are mentioned in the Telegraph article and that are listed below:BrammerRio TintoDe La RueStanley GibbonsDee ValleyTate & LyleDiageoVedantaElectrcomponentsVesuviusFennerVodafoneImmarsatWeirITEWrite a report to an investor considering investing in the company that you have selected, reportingon the following areas:(a)A description of the company’s history over the last 10 years, and key events affecting theirfinancial strategy(10 marks)(b)Analyse the different aspects of the company’s Financial Strategy over the last 10 years(10 marks)(c)The company’s performance against the Seven Rappaport Value Drivers(20 marks)(d)A critical evaluation of each aspect of the company’s financial strategy in the context ofwhere it is in its corporate lifecycle(20 marks)(e)A critical evaluation of the company’s dividend policy and its impact on shareholder value(20 marks)Total (80 marks)You should make reference, where possible, to appropriate academic theories.

2.1. Assessment Marking Scheme (Student Version)The assignment is marked out of 80. The following table shows the mark allocation and the approachrequired.Assignment PartMarkApproachA description of the company’sThis section should analyse those externalhistory over the last 10 years,factors that have affected the company’sand key events affecting theirchoices for different aspects of its financialfinancial strategy10 marksstrategy, including mergers & acquisitions,regulation, industry & market maturity,changes in enabling technologies, changesin the company’s leadership and any otherspecific factors relevant to the company.Analyse the different aspects ofAnalysis of the different aspects of thethe company’s Financialcompany’s Financial strategy including itsStrategy over the last 10 years10 marksfinancial risk (including its debt rating),currency exposure, and debt fundingstrategy.The company’s performanceYou should critically analyse theagainst the Seven Rappaportcompany’s performance on each of theValue Driversseven Rapaport Value Drivers over time,.within a framework of whether they20 markscontribute to the company creatingShareholder Value.An excellent answer will also compareperformance on the Value Drivers againstthe company’s peer group.A critical evaluation of eachYou should evaluate the company’saspect of the company’sfinancial strategy in the context of thefinancial strategy in the contextcorporate lifecycle models discussed inof where it is in its corporateclass.lifecycleAn excellent answer will compare thecapital structure and consequent financial20 marksrisk with the company’s business risk andwhere it is in its lifecycle. Academictheories on capital structure should be usedto critically assess whether the company isoptimizing shareholder value creation.A critical evaluation of theStudents should critically compare thecompany’s dividend policy20 markscompany’s stated dividend policy with theand its impact on shareholderways in which the company has returnedvalueBPP University Business School: September 2015

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