The areas you have decided to focus upon are:- 1. An overview of market efficiency covering the role and importance of capital markets, the different levels of market efficiency and the implications for the companies managers and shareholders. 2. The sources of capital available for long term projects and their relative merits and limitations. 3. The dividend decision, including the theoretical arguments on dividend relevance and the practical implications of dividends. You are required to produce a report to the board of directors explaining the key principles and concepts in the above areas and discuss models and techniques which could affect company performance. The report should include critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you propose to adopt. Guidance: Students are encouraged to be innovative in their approach as to what should be included in this report the following may be of some use in providing guidance to a possible approach The aim of the assignment is to help you understand how key areas of financial management are demonstrated in practice by a large, international company. This will include investigating the relevant topics from throughout the course linked to the above issues. Some of the principles, concepts and models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the report and may concentrate on different areas within the topics. Numerical example for illustrative purposes may be of use but should not be the only element of the work; discussion and evaluation of models and concepts are also required. Please avoid relying too heavily on descriptive sections reproducing information available from the set material. It is your own logical, evaluation of the topics, the interpretation of course material and presentation, with critical analysis, of a coherent strategic report that will attract high marks. Marking Guide The learning outcomes for this module assessed by this piece of work are Knowledge and Understanding 1. Examined and critically evaluated the key strategic decisions that a business may have to make and appreciated how accounting and finance can assist in making and evaluating those decisions. 2. A critical understanding of specific analytical skills in key decision areas within strategy and finance at local and international level 3. A critical understanding of the limitations of the current state of financial theory in making strategic business decisions Skills 4. Applied the key valuation concepts and methodologies of financial decision making in order to contribute to the wider decision making of the organisation ASSESSMENT CRITERIA Criteria Ist (70+) Knowledge of relevant concepts and issues Identifies all of the key concepts relevant to the question and uses them in an appropriate context. The material is structured to show significant understanding of the key issues. Depth of understanding and extent of critical evaluation (including evidence of wider reading) The work is set in a context where wider reading and appreciation of the context is obvious. The material included is relevant to the topic and appropriate in addressing the key issues identified in the assignment Evidence of appropriate analysis All the key connections are drawn between materials from different sources. The student makes no substantive errors in their analysis and reflects upon the key issues identified in their analysis. Ability to synthesise relevant material from a range of sources The student has accessed a wide range of appropriate sources. They make reference to a wide range of material in their work. Verbatim quotes are used from a range of sources to illustrate and support the arguments being developed, but without becoming a substitute for the students own work. Structure and clarity of presentation. The work is well structured with clearly defined objectives that are achieved. Typographical and spelling errors are rare. Excellent use of tables/graphs is made where appropriate.