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LNDN11003 – CORPORATE FINANCE AND GLOBAL FINANCIAL MARKETS

University

-

Subject

Management

Module Code

LNDN11003
CORPORATE FINANCE AND GLOBAL FINANCIAL MARKETS

COURSEWORK

Roll-Up Data develops and sells quantum technology solutions for the measurement of underwater sea-life diversity. It has only one product and, last year, RUD sold 10,000 units. This year, RUD reported sales of 16,000 units but net profit was lower than expected.

 

Write a consultancy report that evaluate company’s performance and financial position for the company’s stakeholders. Prior to the meeting, you have received the following information for the past two years:

 

  £000s £000s
             2022        2021
Revenues 2,400 2,000
Cost of goods sold 1,440 900
Gross profit 960 1,100
Other expenses 600 400
Net profit before interest and tax 360 700
Interest expense for the year 170 100
Tax payable 57 180
Net income 133 420
Equity 3410 3230
Ratios    
Current ratio 4 3.7
Quick ratio 1.5 2.2
Debtor payment period 46 44
Creditor payment period 51 81
Debt/assets 0.27 0.2
Times interest earned 2.1 7

 

 

 

Your report should identify possible causes for the changes in profitability, liquidity, and financial position. You should also recommend a turnaround strategy to improve the company’s performance and financial position. It is generally accepted that the selling price per unit cannot be increased without a major loss of market share. In addition, reductions in the cost of materials and labour are not possible.

 

Solution Guidelines

 

This practical case is designed to give students experience in accessing and finding relevant corporate performance data, and thinking about the objectives of companies. Students should be given leeway to explore performance and develop their ideas around the case study.

Notes

  • Your assignment should be written in the style of a report to be read by a Board of Directors.
  • It should therefore include title and contents pages (not included within the word limit).
  • References should use the Harvard system.
  • The word limit is 1,500 words, +/- 10%, excluding any appendices and contents pages.
  • The deadline for submission is 24th November 2023
  • Submission is via Turnitin.
  • Penalties will apply for late submission and being more than 10% either side of the word limit.
  • The assignment is worth 100% of your course mark.

 

Marking Scheme

Marking Scheme for Report
Feature of report % of total marks
Report structure(appropriate presentation, formatting, referencing) 10
Profitability 25
Liquidity 25
The company’s financial performance 25
Recommendations on improvements 10
Conclusion 5
  100

 

 

Mapping to Learning Objectives

This coursework maps to learning objective

L1.       Critically evaluate why companies place financial management at the core of their business and senior financial managers’ role in maximising firm value.