Task Details: 1.5 hours closed book exam. Students will be required to apply theory and financial techniques to solve financial management questions, and draw conclusions based on the analysis. The exam will consist of a series of short and longer answer questions.
Assessment Type: Individual assessment. 2,000 word. Essay
Purpose: To understand how, in capital budgeting, corporate accountants and finance analysts of a company could use the capital asset pricing model (CAPM) to estimate the cost of shareholder equity. Also, to understand the importance of the efficient frontier and the market portfolio in corporate decision making. This assessment contributes to learning outcomes a, b and c.
Value: 30% Due Date: Week 10 -8.00pm Wednesday of Week 10
Submission requirements details: Students are required to submit both hard and soft copies of the Assignment. The hard copy should be submitted to their tutor during Week 10 and soft copy of the assignment should be run through TURNITIN. The matching percentage through TURNITIN should not exceed 25%.
Topic: Explain and graphically depict how the Security Market Line (SML) is different from the Capital Market Line (CML). Identify and discuss the importance of minimum variance portfolios. Why might the CAPM equation be more relevant than other equations when calculating the required rate of return?
Task details: Students are to analyze available information, doing relevant research regarding the Security Market Line and the Capital Market Line, and create relevant, supported conclusions along with justified recommendations to given issues and problems. Responses are to be formatted into a professional essay or report, as would be expected of someone working in a modern accountant’s or financial adviser’s office.
Presentation: 2000 words +_ 10%, typed in word .doc essay format; title page, introduction, suitable headings and subheadings, conclusions and recommendations, reference list (Harvard - Angelia style), attachments, e.g. spreadsheets.
FIN200 CORPORATE FINANCIAL MANAGEMENT T121 24/02/2021 16:02 PAGE 8 OF 13
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Research Requirements: Students need to support their analysis with reference from the text and a minimum of (6) suitable and reliable, current and academically acceptable sources - check with your tutor if unsure of the validity of sources. Students seeking Credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking.
Research - extent and application 30%
Total out of 100% will be scaled to a mark out of 30
A more detailed marking guide is provided in the Marking Guide on the following page.