MS70104E Financial Management for Decision Makers Assessments Brief | UWL

Module Summary

Financial literacy is essential for every manager in order to review financial statements, to get a complete picture of the financial health of the organisation and to have a good understanding of how financial decisions impact on the value of the organisation. Particularly, managers need to understand the balance sheet, profit and loss account and cash flow statement. By being financial literate, managers can contribute more fully and with more confidence to strategic decision making.

This module provides basic financial principals and covers financial management tools necessary for decision making. It enables you to find relevant information, assess and recognise financial risk in advance, evaluate and choose investment projects that maximise company value. It helps you to understand ratios, performance metrics, investment decisions and business valuation principles.

Module Aims and Content

This module aims to give students a critical understanding of the theories of financial management including the behavioural theories of finance. Students will learn to apply the main techniques of financial decision making in a strategic context.

The following topics are analysed through participant’s discussion of real business cases and simulations

• Understanding Behavioural Finance: Beginnings and Applications
• Fundamental Concepts in Decision Making
• Financial Statements
• Financial Ratios
• Trend Analysis
• Evaluation of non-financial information and financial governance issues
• Working Capital Management
• Pricing, Marginal Costing, Decision Making and Budgeting
• Time value of money, investment and appraisal methods
• Long–term equity finances
• Dividend Policy, Cost of capital and capital structure
• Business Ethics and Corporate Social Responsibility. Environmental Reporting

Summative Assessment 1

The main objective of the Assessment is to meet the learning outcomes below 

Portfolio Element 1: Rhetorical précis (30% weighting)

Assignment Task - Individual work 

Behavioural finance seeks to explain financial phenomena based on non-rational behaviour amongst investors. Discuss the critical literature in this field using relevant and recent authoritative sources and assess how behavioural finance can be applied in the context of corporate finance i.e., in linking the behavioural
characteristics of top executives and their decision-making.    

Requirements:   

• You are required to rhetorical précis of 1000 words (+ or – 10%), not including the bibliography.
• You must have used exactly four sources of published literary sources.
• No introduction or conclusion is required for the rhetorical precis summarising the four papers.

Word Count: 1000   

Summative Assessment 2

The main objective of the Assessment is to meet the learning outcomes below 

Portfolio Element 2: Report (60% weighting)

Assessment Task - Group Work
 
Submit one report that analyses and critically evaluate the financial performance of WH SMITH PLC, a UK listed company. Using company websites or an internet search, obtain the annual report and critically
evaluate and review the business and growth strategy of WH SMITH to explain its success despite the fall of many other high street brands.   

The report must contain an Introduction, Conclusion and Recommendation detailing the results of your analysis. The recommendation should emphasise how the company could improve its financial performance.
   
Prepare a report for your chosen company, to answer the following:   

a. State the aims of your report and give a profile for your chosen companies.
b. Make financial comparisons of your chosen company using ratio analysis for the current and prior year comparatives. Using the five-year summary from the annual report, prepare a trend analysis, to show a comparison of its financial performance over five years and show the relative performance,
trends of the company over those years.  It should include an analysis based on ratio and horizontal and/or vertical analysis of the key components of the financial statements. Discuss any limitations of
the data you are using.  The category of ratios employed could include:   

• Liquidity/Solvency Ratios   
• Asset Efficiency/Activity Ratios.   
• Financial Leverage/Debt Ratios.   
• Profitability Ratios.   
• Market Value/Investor Ratios.   
              Typically, the ratios will include:   
• Return on Capital Employed (ROCE),    
• Operating profit margin (including and excluding exceptional items),    
• Net profit (before or after tax) including and excluding exceptional items,   
• Basic and Diluted EPS (these are shown on the income statement and will not need to be calculated),   
• Asset turnover,   
• Current ratio,   
• Acid test ratio,    
• Receivable’s collection period,    
• Payable’s payment period,    
• Gearing,   
• Interest cover,    
• Price/earnings ratio,    
• Dividend cover,    
• Change in share price over the relevant period    
• Other possible financial ratios   
• Non-financial ratios   

For each ratio and in your horizontal/vertical and trend analysis, you should clearly show your calculations and the source(s) for the figures you have used.  In all your analysis, you should attempt to explain:   

• The purpose of the technique/method used for analysis (e.g., the purpose of a chosen ratio)   
• The rationale for choosing the method of calculation/analysis, for example, using profit before or after taxation in a particular ratio.   
• An interpretation of the potential impact of the ratio changes observed in the financial statements.   

Detailed calculations of the relevant ratios, including the formulae must be included in the appendix section. However, all appropriate graphs/charts must be in the text and should correspond with the analysis

Using the results of your ratio and trend analysis, discuss the reasons given in the annual report and any additional factors obtained from elsewhere (the web/journal/financial pages) for the year-on-year performance of your chosen company and its capital investment and capital structure.

c. Conclusion and Recommendations. Drawing on your analysis of the performance of the company, critically review the business and growth strategy that the corporate group has been pursuing and make recommendations. Information can be obtained from the company report.  However, further information might be obtained from other sources (e.g., comments in the financial pages on the company’s strategies). The recommendation should emphasise how the company could improve its financial
performance.

d. Presentation of the report (report structure, including front page, table of contents, sections to the report with section headings and the word count included with a bibliography, plus grammar, spelling, punctuation, use of English, etc.)  You are expected to include your word count (excluding
appendices) on the front page of your report. Word limit - 1,500 words, excluding any information supplied in appendices. Your report must contain an Introduction, Conclusion and Recommendation detailing the results of your analysis.  

Submission criteria   

• Evidence that you can apply your knowledge of financial analytical tools to a specific company   
• Demonstrate your understanding of the implications of the environment in which the company
  operates, its strategies and its ability to perform well.   
• Evidence of your capability to search for and use source material. All sources used should be specifically cited as mentioned. Good use of citations enhances the credibility of your findings, as they demonstrate that you have carried out an adequate search for information and can substantiate
  your views.   
• The coursework should be well presented.  It should be typed/word-processed.   
• The bibliography should identify all sources and be cross-referenced to/in the report. Students should try to ensure a balance between sources. Plagiarism (using someone else’s writing, from whatever source, as if it were your own) is a university examination offence, which carries severe penalties 

  Word Count: 1500   

Summative Assessment 3

The main objective of the Assessment is to meet the learning outcomes below 

No. 

Portfolio Element 3: Reflection and PDP (10% weighting )

Assignment Task  - Individual Presentation ( 5 minutes )

Utilising Gibbs reflective model critically evaluate your earning, development and understanding of financial management. Identify areas for further development.

Upload the presentation slides on blackboard and do a presentation.

Word Count: 500