UNIVERSITI MALAYA

UNIVERSITI MALAYA

PENILAIAN SUMATIF IJAZAH SARJANA MUDA EKONOMI

SUMMATIVE ASSESSMENT FOR THE DEGREE OF BACHELOR OF
ECONOMICS

SESI AKADEMIK 2022/2023 : SEMESTER I

ACADEMIC SESSION 2022/2023 : SEMESTER I

EIA1010: PENGANTAR PENGURUSAN KEWANGAN DAN PERAKAUNAN

EIA1010 : INTRODUCTION TO FINANCIAL MANAGEMENT AND ACCOUNTING

CASE STUDY
KAJIAN KES

PRESENTATION PERIOD: WEEK12

REPORT WRITING PERIOD: WEEK13

PEMBENTANGAN TEMPOH: MINGGU 12

PENULISAN LAPORAN TEMPOH MINGGU 13

ARAHAN KEPADA CALON:

INSTRUCTIONS TO CANDIDATE:

READ THE INSTRUCTIONS CAREFULLY. YOU ARE REQUIRED TO:

 PREPARE A WRITING REPORT OF THE CASE STUDY

 PRESENT THE REPORT OF THE CASE STUDY

PERHATIAN / ATTENTION:

Students are required to submit the Writing Report and the presentation
slides both in hardcopy and softcopy. The report must use Microsoft Word
and the slides presentation must be prepared using the Microsoft Powerpoint.
Pelajar dikehendaki menghantar Laporan Penulisan dan slaid pembentangan
dalam bentuk salinan keras dan salinan lembut. Laporan mesti menggunakan
perisian Microsoft Word dan persembahan slaid hendaklah disediakan
menggunakan perisian Microsoft PowerPoint.

Plagiarism is a serious issue. Students are not allowed to COPY OR

PLAGIARISE from friends/ slide/ books/ web and etc. There shall be a
penalty for the act of plagiarism.
Plagarisma adalah isu yang serius. Pelajar tidak dibenarkan MENIRU ATAU
PLAGIAT sama ada melalui kawan, slaid, buku atau carian web dan
sebagainya. Penalti akan dikenakan sekiranya pelajar didapati terlibat dalam
plagiarisme.
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 INSTRUCTIONS:
1. The case study contributes 30% to the summative assessment. This
assignment aims to evaluate the ability of students in discussing analytical
method in making long-term investment and financing decisions [CLO3].
2. Prior research posits that the level of firm’s capital structure has impact on
firm performance. The style of financing (either using debt or equity, or
both), by firms is considered as an interesting factor to be studied
particularly during the pandemic COVID-19. During this period, firms may
found to restructure their capital as a decision to response to the uncertain
world economic condition. Hence, students are required to discusses and
analyses the trend of firm’s capital structure during the pandemic COVID-
19 that may affect the firm performance.
3. Students are required to submit the report in a group as instructed in the
submission section discussed later.

You are required to:

1. Form a group of 4 or 5 to perform the assignment.
2. Each member in a group must choose FIVE (5) different companies in any
sectors operating in main market of Bursa Malaysia for four (4) years from
2018 to 2021.
3. The annual report can be downloaded from the Bursa Malaysia website. The
secondary financial data will be given by the instructor for analysis purposes
https://docs.google.com/spreadsheets/d/1UGOXWSdLddwDaKTqOYh8epbV
RQi533tZ/edit?
usp=share_link&ouid=100198560567949084296&rtpof=true&sd=true. The
data needed for the analysis are as follow (attach all the information below in
Report Appendix):

A. List of the firm

B. Age of firm (Number and Natural log of the age)
C. Value of total assets (RM and natural log of TA)
D. Value of market capitalization (firm size-RM and natural log)
E. Value of Short-term liabilities
F. Value of Long-term liabilities
G. Value of Preference shares
H. Value of Retained earnings
I. Value of Common shares
J. CEO Duality – appointed for both manager and director position
(Number and natural log)
K. Ratio of Independent Directors (Number and ratio in decimal)
L. Size of the board (number and ratio in decimal)
M. Gender (number and ratio of female director in decimal)
(B to M is called variable).

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 4. Calculate the firm’s capital structure ratio.
5. Calculate the firm’s weighted average cost of capital
i. Cost of debt – interest expense of the firm divided by its average
short-term and long-term debt during the year. The interest expense
for the year is disclosed in the income statement and the short-term
and long-term debt is disclosed in the balance sheet of the financial
statements incorporated in the annual reports (Bliss and Gul, 2012).
ii. Cost of equity – using the dividend growth model

6. Regress the variables as shown in the equation model. The regression results
must be enclosed in the report systematically. The equation model given
below must be written in a proper form:

PERFORMANCE(i ,t )= A ¿ + P¿ +Q¿ +B ¿ + D¿ + J ¿ + K ¿ + L¿ + M ¿ +Years¿ +∈

P = Summation of E and F. (RM and natural log)

Q = summation of G,H and I. (RM and natural log)
See No.2 for the acronym of each variable used in the regression model
i is observations of each firm
t is time for each year of observations

7. Explain:
i. The descriptive analysis (in table and graphical diagram) about
the firms chosen in sampling.
1. Mean
2. Median
3. Minimum
4. Maximum
5. Standard deviation
6. Correlation

ii. The trend of firm’s capital structure for 4 years. The discussion
should covers the trend or pattern before and after the pandemic
COVID-19 . Highlight any significant changes in firms’ capital
structure before and after the pandemic period.
iii. the linear regression analysis on the firms’ capital structure and
firm performance.
iv. Elaborate the regression findings between the capital structure
and firm performance accordingly.
v. Explain the significant findings with EVIDENCE and
SUGGESTION to support your argument.

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SUBMISSION:

(i) The report writing must be submitted both in hardcopy and softcopy on
FRIDAY in Week 12 before 11.59pm. Late submission will not be entertained.
(ii) The format of writing report:
a. Font type – arial [except the cover page]
b. Font size – 11
c. Margin – normal
d. Spacing – 1.5
e. Topic must be BOLD, subtopic is Italic (see e.g. below)
1. INTRODUCTION
1.1 Cost structure of construction industry

(iii) The rubric of report writing and presentation is also shared in the same
spectrum platform for your reference.

APPENDIX 1

1. Provide a list of companies chosen as a sample in your report Appendix.

2. Structure of the Report:

a. Cover page (see Appendix 2)

b. Table of content (see Appendix 2)

c. Introduction
i. Define the capital structure and optimal capital structure
ii. Importance of optimal capital structure
iii. Types of capital structure
iv. Advantages / benefits of having optimal capital structure.
v. Factors that may affect the firm’s capital structure.

d. Research design
i. Sampling – descriptive using table or graphical diagram.
ii. Analysis regression

e. Discussion of findings
i. All results and findings must be presented in table form.

f. Conclusion

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 i. References ( using APA style)
ii. Appendix to attach other related document (e.g. information in
instruction 2)

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APPENDIX 2

COVER PAGE [remove this]

 
 
EIA1010 APPLIED FINANCIAL PLANNING
 
Sem. 1, 2022-23 
  
 
CASE STUDY OF
CAPITAL STRUCTURE AND FIRM PERFORMANCE : TREND
ANALYSIS during PANDEMIC COVID-19

Prepared by: 

1. (Student ID Number) Name 1 

Group OCC1  2. CEA030077 MUHAMMAD SALAH
3. (Student ID Number) Name 3 

TABLE OF CONTENT

Topic Content page

1 1.1 Introduction 3
1.2 Definition of capital structure 4
1.3 Importance of capital structure 5
2 2.1 Literature review 6
2.1.1 Cost structure of firms in constructions 7
industry

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 END OF QUESTION
SOALAN TAMAT

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Presentation guidelines:

1. Each group must come out with 1 interactive short videos (using only tiktok platform) as part of presentation to share any related
knowledge (context, process or any technical skills) pertaining to the production of the assignment.

2. The content of the video must be suitable for academic knowledge sharing and any sensitivity issue is strictly prohibited.

3. The duration of the video must not be more than 1 minute.

Presentation Rubric

Criteria
Total
Scale

Content (40%)
__x10 =
includes adequate coverage of knowledge in
the issues presented

Presentation (20%)
__x6=
includes English proficiency, eloquence, and
clarity
Slides/Video (30%)
__x10 =
refers to the attractiveness of visual
presentation used
Q & A (10%) __x4 =

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Report Writing Rubric

DIMENSIONS TRAITS 1 2 3
Introduction Not clearly stated about the topic Presents the topic but does not engage the Clearly presents the topic in informative
reader manner

Conclusion Lacks an identifiable conclusion Summarize and repeat what has been said Summarize and offer excellent overview of
the topic
ORGANISATION
Logical Flow No logical flow, confusing, choppy Sensible flow but inconsistent Logical and consistent flow

Layout Poor labeling of sections, sub-topics, Improper and inconsistent labeling Sections, sub-topics, tables and figures are
tables, and figures clearly labeled

Sentencing Poor sentence connection, long sentences Acceptable sentencing but not clear enough Excellent connection with clear sentences

Problem statement No identification of statement Too broad or too narrow and loosely presented Clear and focused statement

Evidence of support Missing or irrelevant supporting ideas Relevant support of ideas Well supported with relevant details

IDEAS Provision of examples No example given Adequate examples with no connection to the Relevant examples which connect to the
(CONTENT) ideas ideas

Presentation of Repetitive or lack of clear point Satisfactory argument Excellent and original argument
argument

No reference Available but inadequate, no proper referencing Comprehensive compilation of reference

REFERENCE

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