Improving Shareholders' Wealth Through Financial Management

The assignment is divided into two parts, each worth 50%. Part one involves advising an international listed company within the textbook publishing industry on how to improve shareholders' wealth by considering relevant concepts of financial management related to a new product investment proposal. The student is required to prepare an investment proposal for 6 years using discounted cash flow techniques and traditional methods, while also providing a critical response to various aspects of the investment appraisal process. Part two involves selecting two UK FMCG firms, extracting relevant financial ratios over a 5-year period, critically examining their performance, and recommending which company would be a good investment. The student is also required to discuss the weaknesses associated with using ratios for analysis.

You have been asked to advise an International listed company within the textbook publishing
industry on how to improve shareholders’ wealth by considering the relevant concepts of
financial management related to a new product investment proposal.
Assignment Question One is worth 50% (word limit o 3000 words):
You have been asked to advise an International listed company within the textbook publishing
industry on how to improve shareholders’ wealth by considering the relevant concepts of
financial management related to a new product investment proposal. You will prepare an
investment proposal for 6 years for the new product line using one of the discounted cash flow
techniques as well as one traditional technique. Marks will be awarded for originality of
approach, relevant quotations and references from financial management theorists and all
relevant supporting business research documentation.
Within your report include a critical response to the following:
• Why is the investment appraisal process so important?
• The concept of relevance applicable to the determination of the project’s cash flows stating all
assumptions made.
• What are the criticisms of the methods used in the investment appraisal process?
• A critical review of the logic behind the decision making process.
Assessment Presentation Requirements:
• Each student is required to provide documentation within a stipulated word limit of 3000 words
for each assignment.
• The content of the documentation produced by each student is required to be within the
maximum word lengths (in brackets) and to cover the specific categories listed.
1. Provide an executive summary of their personal and individual research and work undertaken
for the topic set. It is required in the form of an Executive Report standard format. (15 marks )
2. Indicate and identify the key areas of research and sources which the student has had to
identify and undertake and their key sources of research/references/literature search sources
related to the topic set (correctly referenced as an appendix). (20 marks)

3. A summary of key theoretical positions from the evidence identified by the individual student
related to the topic set. (20 marks)
4. An indication of the individual key conclusions and findings related to the theoretical
positions and the practical issues related to the topic set. (400 words;15 marks)
5. The key critical observations and commentary identified by the individual student within the
module topic-subject set. (15 marks)
6. Identification of the key topic/subject issues/conclusions which the student has learned as a
result of undertaking the assignment on the topic set. (15 marks)
Report Format Requirement:
• The submission of your work assessment should be organized and clearly structured in a report
format.
• Maximum word length allowed is 3000 words, excluding words in charts & tables and in the
appendix section of your assignment.
• Assignment One is worth 50% of the final assessment of the module.
• Student is required to submit a type-written document in Microsoft Word format with Times
New Roman font type, size 12 and line spacing 1.5.
• Indicate the sources of information and literature review by including all the necessary citations
and references adopting the Harvard Referencing System.
• Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay
banks and trying to pass them off as your own. It is a form of cheating which is taken very
seriously.

Assignment Question Two is worth 50%:
• 1. : Selection of Companies
As a consultant, you have been asked to report upon the financial performance of any two (2)
companies from the UK FMCG FIRMS. From their respective annual reports or other suitable
financial databases (such as Financial Analysis Made Easy-FAME; Morning Star; Osiris; etc.).
Obtain relevant financial information for your chosen companies for the last 5 years.
2. Task 2 : Extraction of ratios
From above financial platforms, extract the following financial ratios (or the necessary
information or variables to calculate the ratios) for these companies over a period of 5 years as
follows:
• Profitability Ratios [Any 3 ratios]
• Liquidity Ratios [Any 2 ratios]
• Gearing Ratios and capital structure ratios, and growth ratios. [Any number]
• Investment Ratios [Any 2 ratios]
Task 3: Discussion of ratios
Critically examine the performance of these two companies using the ratios extracted over the
period under consideration (use graphs of the ratios extracted to support your analysis).
Recommend which of these companies would be a good investment (with the necessary
justifications)
Task 4: Weaknesses of Ratios
What are the main weaknesses associated with such analysis?
Assessment Presentation Requirements:
The submission of your work assessment should be organised and clearly structured in a report
format. Maximum word length allowed is 3000 words, excluding words in Charts & Tables and
in the Appendices section of your assignment. Student is required to submit a typed-written

document in Microsoft Word format with Times New Roman; Arial; Calibri of size 12’ for the
body text and automatic table of contents for using the relevant headers. The line spacing 1.5.
This assignment is worth 50% of the final assessment of the module.
Indicate the sources of information and literature review by including all the necessary citations
and references adopting the Harvard Referencing System. Students who have been found to
commit acts of Plagiarism are automatically considered to have failed the entire module. If found
to have breached the regulation for the second time, you will be asked to leave the course.
Plagiarism involves taking someone else’s words, thoughts, ideas or essays from online essay
banks and trying to pass them off as your own. It is a form of cheating which is taken very
seriously.
Task 3: Recommended Report Writing (3000 words)
The contents may be as follows:
1. Introduction:
This should clearly set the purpose of the assignment; address the
methodology and source of information; the companies chosen
2. Rationale for the choice of the Companies
Provide the necessary justification for choosing these companies. Your
discussion should meet Level 7 requirements (should be critical in nature).
3. Performance Analysis
This should be carried out using the ratios extracted
Profitability Ratios
Liquidity Ratios
Gearing & Capital Structure and growth Ratios
Investment ratios
Comparative Management commentaries; overall assessment and
viewpoint based on your own analysis; graphical analysis etc. Note that
the discussion should be supported with the relevant literature. It should
be critical in nature.

4. Summary of analysis: [to help provide relevant recommendations]
Provide a summary for the analysis carried out in the form of table with
comments within the table.
6. Limitations of the method used to perform the analysis:
This should be cantered in the weaknesses associated with the use of
ratios
7. Conclusions & Recommendation:
Ensure your conclusions and recommendations are justified and supported
by facts. There should be a logical based on the evidence contained in the
main body of the report.
8. Reference List
9. Appendices
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