MSc Corporate Finance: Tullow Oil PLC SVA and Event Analysis Report

This coursework assignment requires a business analyst to prepare a comprehensive report on Tullow Oil PLC, a UK-based FTSE 350 company, focusing on shareholder value analysis (SVA). The report begins with a critical evaluation of the SVA model's appropriateness for company valuation, followed by a numerical valuation of Tullow Oil using the SVA method. It necessitates the explanation and justification of all variables used, along with a sensitivity analysis to identify critical valuation variables. The analysis includes a comparison of the estimated SVA value with the actual market value. The second part of the report involves identifying and evaluating a significant corporate financial event in the last five years, examining its impact on the company's financial strategy, value, and strategic position in the context of relevant finance theories. The report adheres to strict guidelines regarding word count, referencing (Harvard style), presentation, and submission, emphasizing the importance of appendices, clear labeling, and the use of electronic submission to prevent plagiarism. The assessment criteria evaluate the executive summary, company valuation (including profile, SVA model application, sensitivity analysis, and critical discussion), the corporate financial event analysis, and the overall structure and presentation of the report.

MSc – Corporate Finance
Coursework Assignment
As a business analyst, you are required to prepare a report providing the valuation and
analysis of your allocated UK-based FTSE 350 company (TULLOW OIL PLC) using
shareholder value analysis (SVA) method and to identify one actual corporate financial event
that is happening or has happened and discuss in context with appropriate finance theory.
(Maximum 4,000 words). The report should address the following:
(a) As a business analyst, provide valuation and analysis of your assigned company
using the shareholder value analysis (SVA) method
First of all, this part of the report requires you to critically evaluate the
appropriateness of SVA model to value a company. Further, you need to perform the
valuation of your assigned company in numerical terms using SVA model and present
the findings in a professional manner. As a business analyst, you are required to
explain and justify the variables used in the valuation model. You also need to provide
a sensitivity analysis to identify the critical variables influencing the valuation of the
company. You should also compare the actual value of the company with the value
estimated by SVA model and explain of any difference or similarity. (Maximum
2,500 words)
(b) Identify and evaluate one actual corporate financial event that is happening
or has happened in your assigned company, with reference to the appropriate
finance theories.
This part of the report requires you to identify one actual corporate financial event that
is happening or has happened in your assigned company, in the last 5 years and
discuss its impacts on company’s financial strategy, value, and its strategic position.
For example, an issue in raising new finance may have implications to agency theory,
the expected yield curve of interest rates, future projects pipeline, sources of finance,
international capital investment, management influence and corporate reputation, risk
and its management, etc. Another issue could be the impact of mergers and
acquisitions on company’s strategic position. As a business analyst, you need to
determine the context for your analysis of the event, this may be done by reading
around the relevant theory and linking these to the event concerned. (Maximum 1,500
words)

GUIDANCE NOTES ON THE REPORT
 This assignment requires you to evaluate and analyse company’s value/issue.
 In the introduction you should clearly state the aim of the report and briefly describe the
structure of the report.
 Please note, appendices and references do not form part of the word count. It is also
important to remember that appendices should be used to support the main body of your
text and therefore should be labelled clearly and probably with page numbers so that the
relevant information can be found easily. All references in the main text and at the end
should be properly presented in the Harvard referencing style.
 The report should be properly presented in terms of spelling, grammar and use of English.
Your report should be in 12-point, one and a half spaced and single sided. It should be
sequentially page numbered, with a contents page and all diagrams, tables, charts, etc.
should be clearly labelled. The front page of the report should contain the appropriate title
and your student number.
 Your report should be submitted in electronic form only. It is not necessary to submit a
hard cop of your report. The electronic copy of your report (as one file, using your student
number as the file name) should be submitted to the NOW Dropbox (details to be
provided). We reserve the right to submit any report to the plagiarism software ‘Turnitin’
and if required, take further action based on the findings of ‘Turnitin’. It is vitally
important that you retain a copy of your work in case of loss.
The hand in date is 12 noon, Sunday, 29th 24th January 2017

Assessment Marking Grid
Student Feedback Form –
Course: MSc Finance
MSc Accounting & Finance
MSc Finance & Investment Banking
Student ID:
Module Name: Corporate Finance Grade:
Module code: ACCA 40524
Assessment
type: Individual Report
Graded by:
1st Assessor
2nd Assessor
Assessment
Date:
12 noon, Sunday, 249th January 2017 Date graded:
Module learning outcomes assessed:
a) critically evaluate key theories and applications in financial management and corporate valuation;
b) synthesise financial and non-financial information within the context of the relevant theory, and appraise and apply the diverse range of
possible alternatives and recommendations to a multinational organisation;
c) analyse the strategic context for financial management decision making to the wider business and organisational context;
d) provide critical advice on the selection of models and theories;
e) communicate effectively by written means to a professional audience;
f) undertake independent research utilising a range of secondary information sources appropriate to a theoretically underpinned application
of corporate valuation models;
Note: Final grade determined holistically in reference to how the criteria have been met overall and not the sum of the individual aspects of the work.
Assessment Criteria Fail Pass Commendation Distinction Distinction
Low | Mid | Marginal Pass | Mid | High Commendation | Mid | High Distinction | Mid | High Exceptional
1) Executive summary
(5% mark)
Provide summary of the
report, and introduce the
company and issues
(executive summary is not
part of the word count but
should be brief)
No or inappropriate
executive summary;
No or limited information
provided of the company,
issues or key facts
Adequate executive
summary giving brief
overview of report; Adequate
information providing a brief
explanation of company and
issues but no attempt to
highlight key facts
Good executive summary
providing prioritised and
succinct overview of the
report; Good explanation
providing key facts about
company and
recommendations of issue
Excellent executive summary
providing prioritised
summary drawing attention
to key issues; Excellent,
succinct overview of
company highlighting key
facts, with introduction to the
issue providing an overview
and recommendation of main
focus of issue.
Exceptional executive
summary providing
prioritised summary drawing
clear attention to key issues;
Exceptional, succinct
overview of company
highlighting key facts, with
introduction to the issue
providing an overview and
recommendation of main
focus of issue.
2) Company valuation
(55% mark)
a) Company profile,
competitors positioning
and market share;
No or inappropriate
discussion of company
profile, competitors
positioning and market share
Some discussion of company
profile, competitors
positioning and market share
Good discussion of company
profile, competitors
positioning and market share
Excellent discussion of
company profile, competitors
positioning and market share
Exceptional discussion of
company profile, competitors
positioning and market share

b) Estimate of company
value utilizing the SVA
valuation method using
appropriate spreadsheet
model
Demonstrates little or no
logical approach to using the
SVA method in constructing a
value of the company and
not presented very well
Demonstrates a limited,
logical approach to using the
SVA method in constructing a
value of the company and
presented adequately
Demonstrates a good, logical
approach to using the SVA
method in constructing a
value of the company and
presented well
Demonstrates an excellent
approach to using the SVA
method in constructing a
value of the company and
presented in a highly
professional manner
Demonstrates an exceptional
approach to using the SVA
method in constructing a
value of the company and
presented in a superb
professional manner
c) Sensitivity analysis with
identification and
discussion of critical
variables
No or inappropriate or largely
incorrect sensitivity analysis.
No/little coherent
identification and discussion
of key variables
Performed limited sensitivity
analysis but with numerous
errors and/or lacking in
clarity. Identification and
discussion of key variables is
done to an adequate
standard, but the discussion
is weak in places
Performed sensitivity
analysis which is largely
correct and clear. Identified
and discussed appropriate
critical variables to a good
standard. But containing a
few errors/incorrect
interpretations in
calculations and/or
discussion
Performed sensitivity
analysis which is correct and
clear. Identified and
discussed appropriate critical
variables to a high standard.
Contains the odd error
Performed sensitivity
analysis which is correct and
clear. Identified and
discussed appropriate critical
variables to an excellent
standard. Contains no errors.
d) Explanation and
justification of the
variables and proxies used
in constructing the
valuation model
No or inappropriate
explanation and justification
of variables and proxies used
Some good explanation of all
variables and proxies used,
though not all fully justified
Good explanation of all
variables used and well
justified
Excellent explanation of all
variables used and high level
of justification
Exceptional explanation and
justification of all variables
used
e) Critical discussion of the
appropriateness of using
the SVA method to assess
the value of the assigned
company
No or inappropriate
discussion of appropriateness
of the SVA valuation method,
with little or no reference to
other valuation methods
Reasonable discussion of
appropriateness of the SVA
valuation method, making
reference to other valuation
methods and also
considering the weaknesses
of the SVA method
Good discussion of
appropriateness of the SVA
valuation method, in the
context of other valuation
methods and providing a
good critique of the SVA
method
Excellent discussion of
appropriateness of the SVA
valuation method, in the
context of other valuation
methods and providing an
excellent critique of the SVA
method
A superb discussion of
appropriateness of the SVA
valuation method,
effortlessly incorporating
other valuation methods and
a critique of the SVA method
f) Discussion of the
potential discrepancies
with the value from the
valuation method and the
actual market value
No or inappropriate
discussion offered as to
differences in value from the
valuation method and the
actual market value
Reasonable discussion
offered as to differences in
value from the valuation
method and the actual
market value
Good discussion offered as to
differences in value from the
valuation method and the
actual market value
Excellent discussion offered
as to differences in value
from the valuation method
and the actual market value
Exceptional discussion
offered as to differences in
value from the valuation
method and the actual
market value
3) Actual corporate
financial event (30%
mark)
a) Explanation and
discussion of the key issue
facing the company as
reported in the press;
Discussion of the impact of
the issues to the
company’s financial
strategy, value and
strategic position
No or inappropriate issue
identified
Appropriate issue identified
and explanation provided;
limited discussion of the
impact of that issue
Appropriate issue identified
and good explanation
provided; good discussion of
the impact of that issue
Appropriate issue identified
and excellent explanation
provided; excellent
discussion of the impact of
that issue on the company’s
strategy
Appropriate issue identified
and excellent explanation
provided; exceptional
discussion of the impact of
that issue on the company’s
strategy

b) Identifying and
justifying the finance
theories to be used in the
evaluation; Evaluation of
the issue in context of the
finance theories
No or inappropriate link to
finance theories
Appropriate theory identified
and justified; some
evaluation of the issues in
the context of finance
theories
Appropriate theory identified
and good justification
provided; good evaluation of
the issues in the context of
finance theories
Appropriate theory identified
and excellent justification
provided; excellent
evaluation of the issues in
the context of finance
theories
Appropriate theory identified
and exceptional justification
provided; excellent
evaluation of the issues in
the context of finance
theories
4) Structure and
presentation of the
report
(10% mark)
Unclear, illogical structure
difficult to read
Significant errors
Poor use of English.
Poor presentation style,
Appropriate, logical report
structure and reasonable
presentation but with some
grammatical errors
Good, logical report
structure. Well presented
with few grammatical errors
Excellent, logical report
structure. Very well
presented with no noticeable
grammatical errors
Exceptional, logical report
structure. Very well
presented with no noticeable
grammatical errors
Comments:
Strengths:

Areas for improvement:
