Coursework Assessment for AFE4004 Module, Essays (high school) of Mathematics

The coursework assignment for the afe4004 module accounts for 50% of the total marks. It consists of four tasks: project appraisal, investment opportunities, cost of capital, and risk and return analysis. Students must choose a listed company, perform financial analyses, and provide investment advice. This assignment assesses the students' understanding of learning objectives and their ability to apply financial concepts in a practical setting.

Typology: Essays (high school)

2021/2022

Uploaded on 04/05/2022

bt20103120-bharat-singh
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AFE4004 - Coursework 2
Abstract
This assignment is designed to assess understanding of related learning
objectives (LOs) of module AFE4004. This assignment accounts for 50% of
the total marks available for this module. There are four separate tasks defined
for this assignment which should be completed by students.
Instruction
Students have to answer
task 1, and two out of three other tasks
, and provide the
procedure of workings.
Each student need to choose one of a listed company on Stock Exchange
The deadline for this coursework will be announced on Canvas
Word limit of this assignment is 1500 words excluding references and tables. Note that
this is a maximum not a target.
All students need to be aware that the current rules and regulations on plagiarism
prescribed by the University apply and you are advised to become fully familiarised
with their content before starting your preparation.
This assignment should be submitted in word format through Canvas.
The submitted assignment will be checked by Turnitin for similarity.
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AFE4004 - Coursework 2

Abstract This assignment is designed to assess understanding of related learning objectives (LOs) of module AFE4004. This assignment accounts for 50% of the total marks available for this module. There are four separate tasks defined for this assignment which should be completed by students. Instruction Students have to answer task 1, and two out of three other tasks , and provide the procedure of workings.

- Each student need to choose one of a listed company on Stock Exchange - The deadline for this coursework will be announced on Canvas Word limit of this assignment is 1500 words excluding references and tables. Note that this is a maximum not a target. All students need to be aware that the current rules and regulations on plagiarism prescribed by the University apply and you are advised to become fully familiarised with their content before starting your preparation. - This assignment should be submitted in word format through Canvas. - The submitted assignment will be checked by Turnitin for similarity. _-

-_

Task 1: Project Appraisal [40 marks] Jackets Ltd is considering expanding its highly successful denim jackets business. The initial investment costs and net annual cash flows for two projects considered by Jackets Ltd manufactures denim jackets are shown in the table below; Year A B 0 (100,000) (150,000) 1 20,000 100, 2 25 ,000 40, 3 35 ,000 20, 4 50 ,000 10, The company’s expected return on capital is 8 %. For both projects, calculate the following;

  1. Calculate the ARR and discounted payback period of these two projects. [ marks]
  2. Calculate the NPV of these two projects. [10 marks]
  3. Calculate Profitability index for these two projects. [10 marks]
  4. Considering the above results, explain critically which project do you choose? [ marks] Task 2: Investment Opportunities [30 marks] You are working as a financial advisor for Bradford financial Services Ltd based on Leeds Road which has clients from the public and private sector around the Yorkshire region. Mr John who is 30 - year old which is one of your client. He recently received £ 30 ,000 from his family and wants to invest this fund for at least 2 5 years. He has a job with saving of £ 8 00 per month. He comes to you as his financial advisor seeking for investment advice.
  5. Suggest a list of potential investments opportunities for Mr. John. [15 marks]
  6. Keeping in view of his age and financial condition, what is your financial advice? [15 marks] Hint: consider different investment options in money and capital market. Task 3: Cost of Capital [30 marks] You are working in the finance department and your manager ask you answer the below questions. Sainsbury is financed by both debt and equity. You need to collect the following information and calculate the weighted average cost of capital (WACC) of Sainsbury.
  7. Include the Market Cap of Sainsbury. [5 marks]
  8. Include the Long-term Debt of Sainsbury. (From the recent released balance sheet of company) [5 marks]
  9. Discuss the Beta of Sainsbury as measure of systematic risk. [5 marks]
  10. Discuss the 10 - year Bond rate of UK government as proxy of risk-free rate. [5 marks]
  11. What is the weighted average cost of capital (WACC) of Sainsbury? (Hint: