Guidance for AC3650 Assignment 2 18/19
The assignment should be around 2500 words but there are no extra marks/penalties if your word count is more or less than this. The idea of a word count is to set an expectation for how much time and effort should go into this assignment.
The structure just needs to be clear to the reader. I don’t expect an introduction/executive summary but a conclusion might be useful to highlight the key points of your argument. As a minimumI’d expect 3 sections, being the 3 questions highlighted in the assignment brief.
I would expect that subsections will also be useful to clarify the points you’re making.
Some reminders of what I suggested you could include in your analysis of each of the questions:
Part: A)30 marks
Discuss the factors that could influence an investor to buy particular securities and so the validity of your friend’s statement.
As part of the discussion include reference to risk v return, behavioural finance, market efficiency, insider dealing and an index model (like CAPM).
I’d like this section to be phrased in a way that your friend would understand. You don’t need to bring every area of our study into your answer but you need to explain them well.
Part B) 40 marks
For the company that you were allocated in Assessment 1 (if you wish to analyse a different company then email your Module Tutor with an alternative suggestion and reasons for the change):
a) Compare the movement in it’s quoted share price on a quarterly basis for the past 3 years with the change in some market statistics like:
i. Interest rates
v. Any others you believe to be useful
b) Complete a PESTLE analysis for the company’s industry (some of the sections may be more brief than others);
This section doesn’t need to be a report or essay – it’s more like an exam question. So just provide an answer to each element.
Part: C)30 marks
a) Explain, in simple terms, the various ways that a target company could be valued as part of a takeover bid.
b) What options would a listed company have to raise finance to fund a takeover bid? Explain the advantages and disadvantages of each option (consider issue costs, issue value, control and life time costs).
Like Part b) this is not an essay/report, it’s just like an exam question.
I would imagine that you’re producing a guide for these topics to someone who is new to accounting.
You need to try to cover most of the areas we’ve been describing in class but in your own words. Using illustrations or practical examples you’ve found would improve the score but isn’t necessary. If you search for takeovers you should be able to find lots of practical examplesbut it might be difficult to get any details that would greatly assist with these two questions.
Obviously this report is about some very technical concepts.
A report will score well if you
As always if you have any questions then let me know and if you want me to look at a draft then just send it to me. I might have to limit the number of drafts you send me at this time of year but there’s no harm in asking for help!