YEAR 2 INDIVIDUAL ASSIGNMENT (Question) Learning outcomes: Identify and evaluate the main sources of funds available to an organization

n and understand the key determinants of an organizations capital structure and the risks these pose to the organization. Describe and critically reflect upon the key issues involved in the effective management of an organizations finances. Apply theoretical concepts and frameworks to a range of practical situations in order to propose solutions to business problems. The purpose of this assignment is to ensure that the students have a basic level of skill in strategic financial ratio analysis. The students will also learn to analyze and critically discuss the performance and the position of the companies chosen for the assignment. In addition, this assignment is to help familiarize the student with library sources of industry financial standards. The overall paper has an introduction, a body (comprising of formulas, calculations, interpretations and critical review) and conclusions. The overall conclusion of the paper is a comparative evaluation of the firm to its industry to determine the overall STRATEGIC financial health of the firm The content of each analysis is composed of three parts. First, as per the instructions in the readings, students will calculate financial ratios for each firm. It is not necessary to calculate every possible ratio for the firm but you must calculate at least three to four ratios in each of the five major areas (activity, liquidity, leverage, market performance, and profitability). Next, the students will determine what the industry's standards are for the firm. These are found by consulting any of the reference books on the subject or by constructing a market basket of competitors. You will need to create a basket for the stock market ratios in any case (industry average comparisons). As for this purpose, students are strongly encouraged to use online resources such as the LONDON STOCK EXCHANGE, BURSA MALAYSIA REPORTS, YAHOO FINANCE, or refer to any books/issues/annual reports on Industry Norms/Industry performance. However, if the industry players are difficult to identify, students are allowed to choose the companys closest competitor as their benchmark when performing the cross-sectional analysis. This decision requires supporting documents as justifications, from the media or other relevant sources. In any case, you will present a table for the firm that shows its ratios and your industry standard. It is not necessary to repeat the table in the body of your assignment. You will describe the differences between the firm and its industry. Lastly you must explain what being over or under the industry standard means strategically, operationally or tactically. As an example, if a firm has a lot more inventory than the industry standard, they may be losing money from the costs of holding that inventory. Alternatively, if they have too little inventory they may risk stock outs. REMEMBER THIS ASSIGNMENT IS TO DEVELOP YOUR SKILLS IN STRATEGIC FINANCIAL ANALYSIS. DO NOT PLAGIARISE FROM OTHERS INCLUDING PUBLISHED SOURCES. YOU WILL RECEIVE A 0 IF YOU DO.

Project Outline Each individual is to choose a company listed on EITHER 1) New York Stock Exchange (NYSE) or 2) FTSE Bursa Malaysia (FBM KLCI), and then submit the name of the chosen company attached with its stock quote, to the respective lecturer, a week after the discussion of the assignment question. Then, you are required to identify the industry in which the company is operating. Describe the background of the company. Include the details of the top management and board of directors of the company that you have chosen. You may also include the names of the top managers/directors and success stories of or anything unique or special about the company. A brief discussion about the industry is also required. Analysis should be viewed in terms of trend analysis and cross-sectional analysis. Trend analysis is to be performed over a period of 5 years, for instance, 2006-2010, or 2005-2009. Show all the calculations and interpretations for each of the areas (activity, liquidity, leverage, market performance, and profitability). Find out the major dilemmas, challenges, strengths, weaknesses faced by the company that you have chosen and compare the findings against the industrys norms. These findings should be included in the critical review part. Show the conclusions and recommendations and clearly indicate the future outlook of the company.

The assignment can be done in less than 20 pages, but with a maximum of 30 pages, not including appendices. You need a cover sheet but do not need a binder. Please refer to the universitys LMS assignment format and the material can be downloaded from the universitys LMS. Standard format: Times New Roman, font size of 12, double spacing, one-inch margins. The table of calculations and work-out can be attached in the Appendices of the assignment. Hand-written assignment will not be accepted. The deadline for assignment submission is set at 12:00p.m. on Wednesday of Week 9. All assignment groups are required to submit their assignments to their respective class representatives (CRs) before 12:00p.m. and the CRs should submit the collected assignments to their respective lecturer before the deadline. Any assignment submitted after the due date, without an approved extension, will be penalized. A penalty of 10% reduction of the allocated mark to the assignment will be levied for each day of late submission. Weekends and public holidays are included in the calculation of late submission. Assignments submitted more than seven (7) days after the due date will be awarded with zero (0) marks. Appendices: All appendices should be listed on a separate page after the reference section.

**Note: Please attach the marking / assessment scheme below before submission; No. Description Weightings Marks 2

Allocated 1 Introduction: The companys background (the industry it is operating in, its nature of business etc..) The companys management (BOD, CFO, etc) Body: Formulas and calculations (Time-series analysis data) Formulas and calculations (cross-sectional analysis data) Interpretation and critical review using timeseries analysis Interpretation and critical review using crosssectional analysis. Conclusions and recommendations (Overview of the companys performance and position, the companys standing in the industry, future outlook, opinions, etc) Presentation References Total 10% 10%

50%

20%

4 5

5% 5% 100%

/100