BFF5954 Business Finance – Assignment Question
An accounting consulting firm (XYZ and Associates (XYZ)) wishes to establish a business finance division. As a recent university graduate with expertise in this area you have been appointed as consultant to advise XYZ on some key issues they must consider in establishing the business finance division. They suggest that you should use the topics for each week in the unit guide for BFF5954 Business Finance Semester 2, 2015 as a guide.
XYZ have advised that they require a business report (maximum 3,000 words) (use headings, tables, dot points as appropriate (refer to Q Manual))1 covering three key terms and their relationship with each other.
1. The investment decision
2. The financing decision.
3. The dividend decision.
For these three key areas, XYZ requires:
1. The investment decision. (60 marks in total)
a. An understanding of what this term means. (10 marks)
b. Quantitative models used in this area.
i. Advantages and disadvantages of each model. (15 marks)
c. Qualitative issues that need to be considered when finalising decisions made as a result of quantitative models. For example, the quantitative model (numbers) may indicate that a certain investment choice should be made, but there may be circumstances that suggest another choice would be more appropriate. (15 marks)
1 There will be a deduction of 3 out of 15 marks if the report is not presented in proper business report format as required.
6
d. How the investment decision relates to:
i. the financing decision,
ii. the dividend decision. (10 marks)
e. A short analysis of one article from a business magazine about the investment decision relating to a to d above (the article chosen could be a case study that covers the investment decision, the financing decision and the dividend decision; or an article that just covers the investment decision). (10 marks)
i. Provide the article as an appendix.
2. The financing decision. (20 marks in total)
a. An understanding of what this term means. (5 marks)
b. How the financing decision relates to:
i. the investment decision,
ii. the dividend decision. (10 marks)
c. A short analysis of one article from a business magazine about the financing decision (the article chosen could be a case study that covers the investment decision, the financing decision and the dividend decision; or an article that just covers the financing decision). (5 marks)
i. Provide the article as an appendix.
3. The dividend decision. (20 marks in total)
a. An understanding of what this term means (5 marks)
b. How the dividend decision relates to:
i. the investment decision,
ii. the financing decision (10 marks)
c. A short analysis of one article from a business magazine about the dividend decision (the article chosen could be a case study that covers the investment decision, the financing decision and the dividend decision; or an article that just covers the dividend decision). (5 marks)