Following the format will lead to marks of

40-50 provided you have 15 references,

Bibliography and Intext references
TASKS 1

Choose a public limited company and perform ratio analysis to comment on the
company in terms of profitability, liquidity, working capital management, capital
structure and, stock market performance for the last five years by using cross
sectional analysis. Students must add original financial statements and screenshots
of excel sheets used for calculating the ratios and drawn graphs over time to
illustrate trends, if there is any.
Please refer to Financial_Ratios_and_Performance ( slide is
included in the Assignment 2 Folder)
Liquidity

Current Ratio: Definition Table of data, Graph and Interpretation

Quick Ratio: Definition Table of data, Graph Interpretation

Solvency ratios

Debt Ratios: Definition Table of data, Graph and Interpretation

Times Interest Earned: Definition Table of data, Graph and Interpretation

Asset Management Ratios

Inventory Turnover: Definition Table of data, Graph and Interpretation

Asset Turnover: Definition Table of data, Graph and Interpretation

Profitability Ratios

Profit Margin: Definition Table of data, Graph and Interpretation

Return on Equity : Definition Table of data, Graph and Interpretation

Market Value Ratios

Earnings per share: Definition Table of data, Graph and Interpretation

Price to Earning: Definition Table of data, Graph and Interpretation

 TASKS 2

. Critically evaluate the relationship between capital structure and the value of the
firm

This Task covers LO2

Please Refer to Capital_Structure( slide is included in the

Assignment 2 Folder)
Capital Structure definition

Effects of Leverage

Benefits of Debt and Benefits of Equity Slide 6

Pecking Order Theory Slide 14

The Static Theory of Capital Structure Slide 35

Modigliani and Miller’s Proposition slide 24

TASKS 3

The capital investment decision-making process needs evaluating, prioritizing and deciding

among projects to assess which will give a company a competitive advantage. Discuss the capitals
appraisal techniques managers use in evaluating projects Students must include worked examples of
the capital’s appraisal techniques discussed and mention challenges faced while using these
techniques.

Please Refer to Capital_Budgeting_and_Decision_Making ( slide is

included in the Assignment 2 Folder)
NPV Definition and example in EXCEL
Payback Definition and example in EXCEL

IRR Definition example and in EXCEL

Profitability Index example and in EXCEL

TASKS 4

Discuss the difference between systemic and non-systemic risk and their
implications for investing in financial markets

Please Refer to Systemic Risk ( slide is included in the Assignment 2

Folder)