Finance for Managers FIN6554 (FIN6013)

Finance for Managers- FIN6013– GSB SEGi University |
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Course work
Finance for Managers FIN6554 (FIN6013)
September 2020
Lecturer: Dr. Abdolhossein Zameni (Pejman)
Submission Deadline: Week 7_ 1/11/2020
Please refer to the assignment for the instructions.
Finance for Managers- FIN6013– GSB SEGi University |
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Part A (100%)
Question1
Find 10 years share price and dividends’ of two Malaysian publicly listed companies and
subsequently answer the questions a, b and c below.
a) Critically analyse the basis of choosing the companies. (10 marks)
b) Calculate the discretely compounded annual returns and the respective risk for both firms.
Analyse your answer. (20 marks)
c) Calculate the continuously compounded annual returns and the respective risk for both firms.
Which is the better investment of the two? Analyse your answer. (20 marks)
Show all the calculation
Question 2
Suppose that the annual returns on two shares are perfectly negatively correlated and that =
0.07, = 0.20, , and . Assuming that there are no arbitrage opportunities, by
using the Goal Seek function (excel) calculate the weight (proportion) of the two assets that
produce the lowest portfolio variance? (Use the Goal Seek function) (30
marks)
Question 3
You believe that there is a 20% chance that Astro company’s share will drop by 11% and 80%
chance that it will increase by 17%. In addition, there is a 25% chance that OCK Group Berhad
company’s share will drop by 15% and a 75% chance that it will increase by 24%. The
covariance is 0.009. Calculate the expected return, the variance, the standard deviation, and the
correlation for each share. (20
marks)
PART B: (100%)
Question 4
You are 30 years old today and decided to apply for a postgraduate in finance. Your current
annual salary is RM36,000 and is expected to grow by 4% annually. Graduates in finance earns
RM50,000 upon graduation, with salaries growing by 3.5% yearly. Cost of the 2 years of study
is RM25,000 per year which should be paid at the end of each study year. If your retirement age
is 67 and the discount rate is 7% annually, is it worthwhile to quit your current job and do your
Finance for Managers- FIN6013– GSB SEGi University |
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postgraduate? What is the IRR of your study?
(50 marks)
Question 5
Analyse the FOUR (4) advantages and disadvantages of fund raising either from bond or share
to the company’s performance. (50 marks)
Requirement of the assignment:
The length of assignment is between 1,800 to 2,000 words (part A: 1000 words, Part B: 1000
words), tables, figures, appendices, etc. The assignment should be arranged in the following
manner:
? Individual Assignment Cover Sheet- SEGi
? Title page
? Table of contents
? Body of assignment including, introduction, content and conclusion
? References – Minimum 10 references. Use Harvard system.
? Appendix
? Turnitin Report
a. The similarity index should be as minimum as possible (e.g., it should be less than or equal to
15%). Report that exceeds 15% or without the Turnitin report will not be graded. 5 marks
will be deducted from the total marks graded for violating this rule.
b. To submit Turnitin Originality Report online and print the cover page – Please use your full
name to create the account.
Resubmission
• Resubmission to improve the grade of assignment is allowed. Resubmission is only
allowed for one time and within a stipulated period before the final exam.
• The maximum mark of re-work assignment is 65/100.
Late Submission policy
• The penalty for late submission is as follow which is in line with the University’s
Academic Regulations and Policies, 2017 (Ref pdf; Section 6.6.3 and Section 6.6.4).
No Days Late Penalty
Finance for Managers- FIN6013– GSB SEGi University |
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1 1-5 Days 1 mark deducted per day up to maximum of 5 marks
2 6-10 days 2 marks deducted per day from day 6-10 plus the 5 marks deducted from
days 1 -5 up to maximum of 15 marks
3 11-15 days Will only be able to secure a pass grade 50% provided the work is
secure more than 50%. For work that has secured less than 50%, the marks will
be maintained
4 Submission Will not be accepted after 16 days
Assessment Criteria And Grading Sheet
Categories
SEGi Relevance Knowledge Analysis Argument
and
Structure
Critical
Evaluation
Presentation Reference to
Literature
Pass
80-100 % The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding
and skills appropriate to the Level of the qualification. There is also ample excellent evidence showing that all the
learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level, it is expected that the
work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling evaluation,
originality, and elegance of argument, interpretation or discourse.
75-79 % The work examined is outstanding and demonstrates comprehensive knowledge, understanding and skills appropriate
to the Level of the qualification. There is also excellent evidence showing that all the learning outcomes and
responsibilities appropriate to that level are fully satisfied. At this level, it is expected that the work will be
outstanding in the majority of the categories cited above or by demonstrating particularly compelling evaluation and
elegance of argument, interpretation or discourse.
70-74 % The work examined is excellent and is evidence of comprehensive knowledge, understanding and skills appropriate to
the Level of the qualification. There is also excellent evidence showing that all the lea rning outcomes and
responsibilities appropriate to that level are satisfied. At this level, it is expected that the work will be excellent in t he
majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of
argument, interpretation or discourse.
65-69 % Directly relevant
to the
requirements of
the assessment
A substantial
knowledge of
relevant
material,
showing a
clear grasp of
themes,
questions and
issues therein
Comprehensiv
e analysis -clear and
orderly
presentation
Well
supported,
focused
argument,
which is
clear and
logically
structured.
Contains
distinctive
or
independent
thinking;
and begins
to formulate
an
independent
position in
relation to
theory
and/or
practice.
Well written,
with standard
spelling and
grammar, in
a readable
style with
acceptable
format
Critical
appraisal of
up-to-date
and/or
appropriate
literature.
Recognition
of different
perspectives.
Very good
use of a wide
range of
sophisticated
source
material.
60-64% Some attempt to
address the
requirements of
the assessment:
may drift away
from this in less
focused passages
Adequate
knowledge of
a fair range of
relevant
material, with
intermittent
evidence of an
appreciation
of its
significance
Significant
analytical
treatment
which has a
clear purpose
Generally
coherent and
logically
structured,
using an
appropriate
mode of
argument
and/or
theoretical
mode(s)
May contain
some
distinctive
or
independent
thinking;
may begin
to formulate
an
independent
position in
relation to
theory
and/or
Competently
written, with
only minor
lapses from
standard
grammar,
with
acceptable
format
Uses a good
variety of
literature,
which
includes
recent texts,
and/or
appropriate
literature,
including a
substantive
amount
beyond
library texts.
Finance for Managers- FIN6013– GSB SEGi University |
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practice. Competent
use of source
material.
55-59 %
50-54 %
Some correlation
with the
requirements of
the assessment
but there are
instances of
irrelevance
Basic
understanding
of the subject
but addressing
a limited
range of
material
Some
analytical
treatment, but
may be prone
to description,
or to narrative,
which lacks
clear
analytical
purpose
Some attempt
to construct a
coherent
argument,
but may
suffer loss of
focus and
consistency,
with issues at
stake stated
only vaguely,
or theoretical
mode(s)
couched in
simplistic
terms
Sound work
which
expresses a
coherent
position
only in
broad terms
and in
uncritical
conformity
to one or
more
standard
views of the
topic
A simple
basic style
but with
significant
deficiencies
in expression
or format
that may
pose
obstacles for
the reader
Evidence of
use of
appropriate
literature,
which goes
beyond that
referred to
by the tutor.
Frequently
only uses a
single source
to support a
point.
Fail
45-49 % Relevance to the
requirements of
the assessment
may be very
intermittent, and
may be reduced
to its vaguest and
least challenging
terms
A limited
understanding
of a narrow
range of
material
Largely
descriptive or
narrative, with
little evidence
of analysis
A basic
argument is
evident, but
mainly
supported by
assertion and
there may be
a lack of
clarity and
coherence
Some
evidence of
a view
starting to
be formed
but mainly
derivative.
Numerous
deficiencies
in expression
and
presentation;
the writer
may achieve
clarity (if at
all) only by
using a
simplistic or
repetitious
style
Barely
adequate use
of literature.
Over
reliance on
Material
provided by
the tutor.
The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level
are satisfied – for compensation consideration.
40-44 % The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level
of the qualification. The evidence provided shows that some of the learning outcomes and responsibilities appropriate
to that Level are satisfied. The work will be weak in some of the indicators.
20-39 % The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills
appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and
responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.
0-19 % The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills
appropriate to the Level of the qualification. The evidence fails to show that any of the learning outcomes and
responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.
General information
As a postgraduate student, there is no excuse for poor spelling, bad grammar, or lack of
formatting. Use one and half spacing with 12- point font and pages must be numbered. Use
New Times Roman.
Table of contents and numbering
A comprehensive table of contents is required, with section numbers, section headings, and page
numbers. It will include the List of references, a List of appendices, a List of figures, and a List
of tables, all with page numbers indicated. All sections and pages should be fully numbered.
Finance for Managers- FIN6013– GSB SEGi University |
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Introduction
An Introduction should be provided at the beginning to summarize the structure of the following
sections of the report/assignment. The introduction does not contain theory, nor does it contain
any conclusions or recommendations.
Body of assignment
This is an academic assignment, so it is essential that your statements be justified by relevant
academic theory. For example, don’t just use terms like ‘stakeholder’– explain why you selected
those terms, and the academic theory to justify their use. A major failing of students is to simply
‘describe’ the processes that have happened. At postgraduate level, you are expected to be able
to apply recognized theory to situations, and form opinions. You will often find conflicting
opinions from so-called ‘experts’. You should be developing analytical and communication
skills. Students coming from other universities, and especially overseas students, find this need
for ‘analysis’ the most difficult transition to make to Australian university study. You are
expected to use your judgment to analyze problems, make value judgments as to whether it is
good or bad (or both), use existing academic theory from a range of sources to justify your
position, and to argue whether something is valid or not. In the study of management, there is no
right or wrong answers, only lots of opinions, many of which change over a period of time.
Show that you can act as managers, and communicate your opinions. Major sections should start
on a new page. You will be surprised just how much more readable it makes your assignment /
report.
Referencing
Referencing is NOT just inserting a list of publications at the end of the report and this is not
acceptable. Referencing is NOT just inserting a citation at the end of each paragraph and is not
acceptable.
At postgraduate level, you are expected to cite at least 10 to 15 different sources of reference
material, and to make multiple references to such material. References MUST be cited using
Harvard system (which is author/date). Please do not use footnotes, etc. Read your
Communication skills handbook for information on how to cite reference materials. References
must be listed alphabetically by author in a single List of References at the end of each
assignment. Do not put multiple lists of references at the end of each section or part.
Figures and tables
There are many instances where diagrams and tables would assist in the communication of
information, and the reduction of word length. For example, if a stakeholder analysis were
required, it would be much more clearly understood if presented in a table. Figures and tables
must be numbered in some logical way, so they can be listed on the Contents page, and referred
to in the text. A recommendation is that you call it Figure/Table X.1, X.2 etc. where ‘X’
represents the section number. Consecutive numbering through the whole document (rather than
by section) can mean lots of renumbering if there are changes. Tables should not run over onto
following pages. Start them on a new page to avoid this. If they are multi-page tables, then think
about making them into an appendix. Use a smaller font (10 point) and single line spacing to
reduce the size of tables.
Finance for Managers- FIN6013– GSB SEGi University |
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Appendices
Larger amounts of relevant material (such as sample documents or supporting material) should
be put at the end of the assignment in an Appendix after the List of References. Smaller charts or
summaries could be located in the text, but anything over a page becomes a distraction.
Appendices should be numbered sequentially (Appendix 1, Appendix 2, etc). Unnecessary and
irrelevant information should not be attached. Size of assignments has no bearing on marks
achieved.