FIN3014 Corporate Finance Coursework Brief | SU

Instructions to Candidates

• There are eight (8) pages in this coursework, including the cover page.
• This coursework will contribute 30% to your final grade.
• The coursework is expected to be in report format of four thousand (4,000) words for the Group Coursework Written Report. You are allowed to have a 10% deviation in word counts for the report. Penalties will be imposed on group coursework written reports with a word count exceeding 4,400. Word count must be reported on the last page of the report (after the conclusion). This will be based on the Turnitin word count.

Overview 

This Group Coursework Written Report is developed as an integral part of the course to enable students to apply a broad range of organisational needs to assist in the practical completion of corporate finance deals. 

The Group Coursework Written Report requires students to form groups of five (5) students. Each group shall be evaluated based on its ability to articulate arguments supporting its opinions and prepare a comprehensive written report. 

Group Coursework Written Report 

Format: Typewritten on an MS Word document

Spacing: 1.5

Font type: Times New Roman

Font size: 12

Printing: Double-sided printing

Margin: 1" for each side

References: APA Referencing Format 
                   Please refer to the Sunway University Library Referencing Guides

Word count: 4,000 
                    10% deviation is allowed (maximum of 4,400 words) 
                    Word count must be reported after the conclusion 

Binding: Softcopy submission only.

Cover page: The SBS Assessment Cover Sheet must be completed and attached to your submission, including the Declaration of AI Use Form.

Turnitin: Detailed instructions will be provided closer to the due date.

Submission: Detailed instructions will be provided closer to the due date.

Group Coursework Question (30%) 

Instructions:

Form a group of five students to conduct an in-depth analysis of a publicly listed company. You can choose a company from any country or industry, ideally in a sector that interests you. Once selected, proceed with the following tasks: 

(a) Financial Position and Strategy Assessment

Analyse the company's financial health and current strategies using specific financial metrics (e.g., Return on Equity (ROE), Return on Assets (ROA), Debt-to-Equity ratio, etc.) and strategic models (e.g., SWOT for strategy, PESTEL for external factors, etc.). Provide a well-structured evaluation of the company's financial standing and strategic direction, identifying key opportunities, challenges, and potential risks. You may use industry benchmarks against 1-2 close peers and any other relevant sector averages (if any). You may also add some of their best practices in sustainability and corporate governance as comparison points, particularly their performance against recognised frameworks (e.g., ISSB, GRI, etc.) 

Assume that you have been appointed Chief Financial Officer (CFO) of the company selected in part (a), intending to advance its expansion plans through either a merger, acquisition, or hostile takeover: 

(b) Takeover Target Selection

Propose a potential takeover target. Support your choice by evaluating the target's strengths, weaknesses, and capabilities, and identifying potential synergies resulting from the takeover. Additionally, consider regulatory, cultural, and ethical factors that could impact the merger or acquisition, offering a comprehensive view of the integration challenges and benefits. 

(c) Financing Strategies for Takeover: 

Develop two distinct financing strategies for the proposed takeover. Options may include equity financing, debt issuance, convertible securities, or innovative financial tools such as green bonds or sustainability-linked loans. Analyse the impact of each option on the company's capital structure and financial performance, identifying the risks associated with each. Include all assumptions and calculations to support your analysis and conclude by recommending the best strategy. 

(d) Market Impact Analysis: 

Assess the potential market impact of the takeover, considering factors such as market share, corporate reputation, and supply chain dynamics. Extend the analysis to explore how various stakeholders, including employees, consumers, and communities, might be affected. Discuss potential market reactions, including changes in consumer preferences, competitor behaviour, and regulatory implications.

Additional Notes: 

• Most of the information you need about both companies can be found in the annual reports. You only need to find the three most recent reports (e.g. 2022, 2023, 2024). The annual reports are typically published on the company website, or you may access most of the relevant data from S&P Capital IQ Pro, Bloomberg Terminal, or LSEG Refinitiv Database. Any industrial-related information/report may also be found through Statista and Nikkei ScoutAsia.
• Non-financial analyses must be supported by research into various firms and market factors. These can be found in analysts' reports and news reports on the companies. 
• The amount of information considered in your financial analyses and calculations is your choice. Highly detailed, complex calculations are not necessarily good. Simple calculations are not necessarily bad. The more important aspect is the decision quality based on the analysis.