Faculty of Business, Finance & Hospitality

ASSIGNMENT BASED FINAL EXAM

Programme Bachelor in Business Administration

Module Title CORPORATE FINANCE

Module Code FIN 3013

Module Leader Noorliza Binti Md Noordin

noorliza@mahsa.edu.my
Email of Module Leader

Academic Year / Semester Electives

Credit Value 3

Contents

1. Key Information ..................................................................................................... 2

2. Introduction to the Module ..................................................................................... 2

3. Course Learning Outcomes................................................................................... 2

4. Outline Delivery ..................................................................................................... 2

4.1 Attendance Requirements .................................... Error! Bookmark not defined.

5. Assessment........................................................................................................... 3

6. Assessment Criteria and Marking Standards ......................................................... 6

7. Assessment Offences ........................................................................................... 7

8. Learning Resources .............................................................................................. 9

8.1. Library ................................................................................................................ 9

1
1. Key Information

Module Title : CORPORATE FINANCE

Module Leader : Noorliza Binti Md Noordin

2. Introduction to the Course

This course will enable students to develop their knowledge on Corporate Finance. Students will be able
and ready to prepare and analyse capital budgeting. Besides that, students will be equipped with the
knowledge of calculating and analysing different types of derivatives in different economic situations.

3. Course Learning Outcomes

On successful completion of this course you will be able to:

Prepare Capital Budgeting

CLO 1

Analyses Capital Budgeting

CLO 2

Describe the need of Capital Restructuring

CLO 3

Calculate and Analyses the Different Types of Derivatives

CLO 4

CLO 5 Discuss the Need of Corporate Expansion

4. Outline Delivery

Topics Indicative Content

1 Goals and Governance of a Firm
2 Time Value Money
3 Valuing Bonds

4 Valuing Stocks

5 Net Present Value and Other Investment Criteria

6 Making Investment decisions with Net Present Value

2
 7 Introduction to Risk and Return
8 Modern Portfolio Theory (MPT) and Capital Asset Pricing Model (CAPM)
9 The Weighted-Average Cost of Capital (WACC) and Company Valuation
10 Project Analysis
11 Investments Strategy and Economic Rent
12 Agency Problems, Compensation and Performance Management
13 Efficient Market and Behavioural Finance

5. Assessment

3
5.1 Assignment

Question:

Find ANY financial statements from ANY company which are available online (you
can use google image to make the search process easier). Please make sure that there
are detailed elements breakdowns of Current Assets, Non Current Assets, Current
Liabilities, Non Current Liabilities, Shareholder’s capital, Operation Expenses,
Revenues etc are present in the Financial Statements .

a) Let’s say the company has been offered a project that needs an initial outlay of RM
2 Million, with the annual return of RM100,000 per year. Prepare the capital
budgeting for the company. Use the following techniques: payback period, Internal
rate of Return and Net Present Value to generate the budget. [CLO1]
(20 marks)
b) From your answer in (b) above, analyse the capital budgeting that had been
calculated and give your opinion whether the project should be accepted or not.
[CLO2]
(20 marks)
c) From the financial statement, describe with your own words, the need of capital
restructuring in the company. [CLO3]
(20 marks)
d) Let’s say the company is in need to raise capital, the management had to decide the
choices of either to increase the paid up capital by offering 10% of it’s shares to a
few business people or to issue 10 years 8% bond to the public. Calculate and
analyse these two types of derivatives that the company can offer / issue. [CLO4]
(20 marks)

4
 e) In the chosen company’s context, discuss the need of corporate expansion, if need
to. You can use illustrations, facts and examples with regards to the company.
[CLO5]
(20 marks)

Assignment Guidelines:
 Cover page & back page (soft blue colour paper)  Use Microsoft Word to write your report.
 Font Face: Times New Roman.
 Font Size: 12 point  1.5 spacing
 Diagrams and figures should be labelled.
 Check spelling and grammar.
 Use clear, short and precise language.
 Number the pages.

Due date : 10th August 2020

Additional Instructions
For this module, you are required to submit your assignment on time. You are also required to make another
copy for your reference.
All submission is to be submitted in the drop box that will be provided (if you are not able to submit on 20th
April 2019). You are to call me and fix an appointment for the face to face interview on the course and
assignment. You are again STRICTLY reminded NOT to pass your assignment to any other academic staffs.
Any late submission will not be accepted. A mark of ZERO will be awarded for late or no submission.

Feedback
As an active student, you will be allowed to inquire about your assignment grades. Nevertheless, all grades
will be published on the notice board for your viewing.
Examination scripts are retained by MAHSA University and are not returned to students. However, you
are entitled on obtaining feedback on your performance in an examination and may request appeal with
5
Programme Leader to re-mark your examination script. As a Standard Operating Procedure, a Re-Mark will
cost you RM50.00 for a paper payable upon submission of Re-Mark Form.

Marks
A point to note that you are to PASS all components of the examination i.e. half the marks should be
achieved as minimum to pass. If Overall marks is more than 50% but one component is failed, then you
will be awarded with CONDITIONAL PASS by which you have to Re-Sit the exam. Failing to Re-Sit in
the semester will cause you to REPEAT the whole course module the coming semester if the subject is
offered.
At certain occasion, you will receive feedback and/or marks on the work that you completed. The feedback
will be part of your learning process. Nevertheless, Marks will only be confirmed upon the publishing of
the marks. It is subject to change especially when “Copy Pasting” is detected.

6. Assessment Criteria and Marking Standards

RUBRICS ASSIGNMENT

Marking Criteria Marks Remarks

Allocated to
criteria
Content
 Appropriate location
 Material is presented in clear and/or logical order
appropriate to the task
 And organization increases readability
/10

Quality of Analysis, Originality & References

 Includes thorough documentation or citation as
necessary
 Supports all claims within either text or appendix
/5
 And properly labels/identifies outside
material

6
 Format, Writing Style & Language
 Following the required report structure and
formatting.
 Demonstrates sophistication and variation in
sentence structure
/5
 Expresses ideas clearly and concisely
 And contains no unnecessary fragments or run-on
sentences

TOTAL 20

7. Assessment Offences
Academic offences include plagiarism, cheating, collusion, copying work and reuse of your own work,
among others.
The university takes academic offences very seriously and they can lead to expulsion. We make every effort
to ensure that students understand how to avoid committing such offences. The need to maintain the order
in examination and also non examinations is for the university to maintain the highest standards of academic
integrity and how the standards are protected.
You are, once again, reminded that your work has to be originally from you. Make sure that there will not
be any loop for your work to be classified as footnotes.

Definitions of Assessment Offences Plagiarism

Plagiarism can be defined as the significant use of other people's work and the submission of it as though it
were one's own in assessed coursework (such as dissertations, essays, experiments etc).

This includes:

• Copying from another student's work

• Copying text without acknowledgement
• Downloading information and/or text from the internet and using it without acknowledgement
• Submitting work and claiming it to be your own when it has been produced by a group
• Submitting group work without acknowledging all contributors. The university uses software

packages to detect plagiarism

7
Cheating

Cheating in examinations means trying to gain unfair advantage over your fellow students.

For example:

• Having notes, programmable calculators or any other information on or near your desk or on your
person, which are not allowed in the examination, whether you use it or not
• Having any mobile telephone or other communication device in the exam room
• Copying from the examination script of another candidate
• Helping another candidate
• Trying to bribe your lecturers to obtain good marks

Collusion
The meaning is almost similar to plagiarizing, whether intentionally or unintentionally because the work of
others and their ideas are their own. Using someone else’s work, words, images, ideas or discoveries is
equals to stealing the hard work.

Some examples of collusion would include:

• agreeing with others to cheat;
• getting someone else to produce part or all of your work;
• copying the work of another person (with their permission);
• submitting work from essay banks;
• paying someone to produce work for you; and
• allowing another student to copy your own work.

Methods to avoid Academic Offence

Firstly, be honest to yourself and know what you want to achieve. That will make you realize the need to
be truthful to yourself as well as others.
As for this assignments are concern, you are required to handwrite the whole assignment. For other subjects,
I would recommend that you can meet your personal tutors or lecturers to get their guidance on how you
can avoid from being caught in committing Academic Offences.

Procedures for assessment offences

If you are caught committing the offence, I will write a report, calling you in for a mini hearing by which
you will have to justify your actions. Under a more serious offence, the University has the say to suspend
or even terminate you. Kindly refer to MAHSA Student Handbook for more details.
8
8. Learning Resources
8.1 Library
The library is full of reference books. Kindly look into the books as a source of reference.

Recommended Texts

Main references:

1. Ross, A.S; Westerfield, W.R; Jaffe, J; Jordan, D. Bradford. (2015), Corporate Finance,
11th Edition. McGraw Hill.

2. Brealey, Myers, Allen. (2014), Principles of Corporate Finance, 11th Edition, McGraw
Hill.

Additional references:

1. Quiry, P; Dallcchio, M; Yann.L.F; Salvi. A. (2014). Corporate Finance, 4th Edition. Wiley.
2. Brigham, F.E; Ehrhardt, M.C. (2014), Corporate Finance, 6th Edition, Cengage Learning.