Financial Management

Individual assignment Weighting – 100% of the marks for this module This is an individual assignment of about 2,500 – 3,000 words. The hand in date is: Requirements: You are the financial manager of Lakes plc (Please note: this is not a real company), a listed manufacturing company, which has divisions in a number of countries and trades globally. You have decided to try and address deficiencies in the Board of Directors knowledge of the financial management systems of the company. You have identified key areas for discussion which you feel the directors need to have a greater understanding of when making strategic decisions. The areas you have decided to focus upon are:- 1. The relative merits and limitations of the different sources of capital, both debt and equity, available for large, long term projects. This should include a discussion of the potential importance of gearing when raising new finance. (60%) 2. Three key methods of investment appraisal and the extent to which they can aid project selection and improve shareholder wealth. (40%) You are required to produce a report to the board of directors which discusses the key principles and concepts regarding the above areas. The report should include critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you propose to adopt.