Corporate Finance: Long-term Investments Planning Dissertation

This dissertation delves into the critical role of corporate finance within an organization, specifically focusing on long-term investment planning. It begins with an overview of corporate finance, highlighting its importance in managing funding, capital structure, and investment choices to maximize stakeholder value. The dissertation explores the significance of long-term investments, defining them as assets held for over three years, such as real estate and stocks, and examines their impact on business stability. A case study of Mark & Spencer is used to illustrate these concepts. The research aims to evaluate the significance of corporate finance in supporting long-term financial planning, addressing research questions on corporate finance importance, long-term investment benefits, valuation multiples, and investment appraisal techniques. The literature review covers the importance of corporate finance, the usefulness of long-term investments for business growth, the significance of multiple finance options for valuation, and the benefits of investment appraisal methods. The research methodology involves the use of secondary data and qualitative and basic methods to conclude the value of financial risk control. The dissertation also lists and explains various investment appraisal techniques like IRR, ARR, NPV and Payback period.

Dissertation & PHD
Thesis
(Corporate finance in an organisation. Long-term
Investments planning)
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Contents
Contents...........................................................................................................................................2
Introduction......................................................................................................................................3
Literature Review............................................................................................................................4
Research Methodology....................................................................................................................5
REFERENCES................................................................................................................................6
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Introduction
Overview of Topic
In an organisation, the crucial department which deals with methods and process of
managing and controlling the funding options, capital structure as well as the investment choices
is defined as corporate finance (Kumar, 2019). It is mainly related with increasing the
stakeholder value in the context of short and long term financial planning which includes
different stages to increase the overall financial performance within an accounting year. The
operation of corporate finance varies from investing in bank to capital investment to best that
will generate maximum results for the company.
Background of topic
The process which includes making of essential financial choices in daily business
operation that can be related with long term investment planning. All those assets which a
company holds for more than 3 years such as real estate, cash stock which give higher return are
known as Long term investment. In early 1880s, Michael Mark and Thomas spencer both stared
a company which deals in different consumer household goods Known as Mark & Spencer. In
present time M&S is considering to be the leading British company dealing and bringing
products, cloths, homeware to large number of Customer all over the world.
Research Aim
“To evaluate the significance of corporate finance that support in long term financial planning”.
A case study of Mark & Spencer.
Research Question
 What is corporate finance and its main importance for functioning of company?
 How Long term investment support company to maintain stability in business operation?
 Define the most popular multiple of finance which is used in M&S for overall valuation?
 What are main Investment appraisal technique and why are the important for long term
financing planning?
Research Objective
 To determine the importance of corporate finance and its significance.
 To evaluate the usefulness of long term investment for business growth.
 To assess the significance of multiple finance option for valuation.
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 To make sure that Investment appraisal method are benefited for future growth of
company.
Literature Review
To determine the importance of corporate finance.
In every kind of business corporate finance have to perform an important function in order to
maintain a decent return over investments and making optimum distribution of wealth (Lemieux,
2017). In simple term, it includes an array of investment and financing which focus on planning
for finance, fund raising, investment, and monitoring of available finance option. In its everyday
business practises, finance function requires strategic choices that a company makes. Its goal is
to allow better use of the company's resources while mitigating the potential risk associated with
such decisions. As a result, corporate finance decisions require finding financial capital for
financing companies.
To evaluate the usefulness of long term investment for business growth.
Long-term investment is expected to result in substantial asset formation over time. In
order to prepare their economic situation, many employees who possess the skills needed to
engage in secondary trading focus on long-term capital appreciation. It may provide
shareholding dividend profits and interest earned on savings accounts. Rare incidents also trigger
temporary recessions in the inventory of an organisation such as Mark & spencer. Rare incidents
often trigger transient price declines in a preferred equity. The oil sector, which is highly
sensitive to rising in reaction conditions, is susceptible to such incidents. It does not,
nevertheless, mind set the annuity ability of the firm.
To assess the significance of multiple finance option for valuation.
In order to make a reliable valuation of financial performance of company within an
accounting year there have been different multiple that are listed below:
 EV/sales
 PE Ratio
 PEG probability ratio
 EV/Assets
 Price to cash flow
 EV/ EBIT
To make sure that Investment appraisal method are benefited for future growth of company.
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Investment assessment is a way for an organisation to determine the quality of future assets or
ventures on the basis of the results of a variety of various strategies for budgeting and funding
resources (Menna, Agrafiotis and Georgopoulos, 2018). They are mainly meant to evaluate the
progress of a new proposal. When launching every development idea, the first image that strikes
to attention is "Is it feasible or not profitable?". Some of the most important investment appraisal
techniques are IRR, ARR, NPV and Payback period. The payback strategy explains how long it
would take for such a venture to produce enough working capital to offset its initial expenses.
Net present value (NPV) is the discrepancy for a given amount of time seen between actual value
of cash outflows as well as the estimated price of cash flow. NPV is indeed a method of financial
analysis that allows for the period value of resources which is used to measure a project's
projected productivity. The accounting rate of return (ARR) is indeed an investment appraisal
ratio that measures the estimated return on an expenditure in comparison to just the initial
expense. ARR doesn't really allow and for period return of assets, like NPV, so if the ARR is
actually greater than the rate of return needed, then the proposal is assumed to have reasonable
productivity standards.
Research Methodology
In order to conclude the report on the value of financial risk control, Secondary data was
obtained from a number of sources, including papers, articles, as well as books.
Research approaches:
Qualitative method: This includes the useful information which is collected by the researcher
through different first hand questions, central group, interview etc. The data collected is mostly
in numerical format which support to make decision that are helpful in completing the research.
Basic Method: It is most popular approach which help in making awareness, by clearing each
and every problems and doubt at the start of research (Nair, 2018). This help in proper
investigation about topic with relevant sources that results in accurate research.
Inductive method: This analysis mainly moves to reduce or accomplish big overall ideologies
from specific conditions that are main part of research.
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REFERENCES
Books and Journals
Kumar, K. S., 2019. Factors affecting the adoption of computerized accounting system (CAS)
among smes in Jaffna District. SAARJ Journal on Banking & Insurance Research.8(6).
pp.11-15.
Lemieux, V. L., 2017. Evaluating the use of blockchain in land transactions: An archival science
perspective. European Property Law Journal, 6(3), pp.392-440.
Menna, F., Agrafiotis, P. and Georgopoulos, A., 2018. State of the art and applications in
archaeological underwater 3D recording and mapping. Journal of Cultural Heritage. 33.
pp.231-248.
Nair, V., 2018. An eye for an I: recording biometrics and reconsidering identity in postcolonial
India. Contemporary South Asia. 26(2). pp.143-156.
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