FINC3600 - PROJECT 1 - CFO BRIEFING MARKING RUBRIC
Project 1 briefings are worth 20%. Company issues are marked on an individual basis (10%), and the Scope of Operations brief is marked on a group basis (10%).
ISSUES WACC ESG Capital Structure Leverage and Liquidity Payout Policy Scope of Operations
What
(4%)
- Credible recommendation of
WACC for main business
activity.
- CAPM based calculation
clearly set out identifying
sources of key inputs.
- Comparable company
analysis to support beta and
gearing assumptions.
- Integration of analysis.
- Identification of up to
three material ESG risks.
- Credible
Recommendations on
managing identified risks.
- Recommendations on
communication to external
stakeholders.
Integration of analysis.
- Credible recommendation on
capital structure to be adopted by
company.
- Comparable company analysis
cross the gearing metrics: net
debt/enterprise value (based on
market values) and net
debt/EBITDA post AASB16
adjustments).
- Integration of analysis.
- Credible recommendation on
future debt/cash management
policy including financing of a
possible future acquisition and
potential distribution of any cash
balances.
- Comparable company analysis of
debt structure and sources,
undrawn facilities and cash.
- Integration of analysis.
- Credible recommendation on future
payout policy for company.
- Comparable company analysis of
dividend payout rates and buyback
activity.
- Integration of analysis.
-Credible assessment of potential
new activity or extension/no change
of existing activities of the company
- If a new activity is recommended,
credible assessment of possible
targets.
- Clear recommendation on future
action or to maintain current scope
of operations.
- If recommendation is multi-step,
the proposed sequence of events.
- Integration of analysis.
Why
(4%)
- Benchmarking of derived
estimate to broker reports
and other sources for
company and comparables.
- Reasoning in relation to
observed variances.
- Specifically addresses Rf in
context of very low
government bond rates.
- Support for EMRP estimate
(in contest of Rf assumption).
- Support for post-tax debt
cost estimate.
- Innovation in insights.
- Identified risks assessed
in terms of stakeholders,
potential financial impacts
and materiality.
- Mitigation strategies
identified including high
level consideration of
costs/benefit.
- Broader industry
implications addressed.
- Innovation in insights.
- Draws insights from
comparable company analysis of
capital structures.
- References some academic
theory (potentially inc. MM, trade
off, flexibility).
- Addresses company specific
factors such as:
- Volatility of cash flow
- Future capex
- Growth options
- Scope for acquisitions
- Existence of surplus assets
- Scope to raise additional debt
- Innovation in insights.
- Draws insights from comparable
company analysis.
- Addresses company specific
factors such as:
- Volatility of cash flow
- Future capex / growth options
- Scope for
acquisitions/divestments
- Capital structure and scope to
raise additional debt
- Ratings
- Addresses broader company
implications of suggested changes
in financing policy (inc. ratings).
- Innovation in insights.

- Draws insights from comparable
company analysis.
- References some academic theory
(potentially inc. MM, signalling.
clienteles and life cycle)
- Addresses company specific
factors such as:
- Volatility of cash flow
- Future capex / growth options
- Scope for
acquisitions/divestments
- Capital structure and scope to
raise additional debt
- Capacity to frank dividends
- Considers form of payout i.e.
dividend v.s. buyback.
- Innovation in insights.
- Review of current activities and
criteria for "fit" - operational
synergies weak positioning
performance, potential to realise
value in sale to strategic buyer.
- Identification of logical criteria
(consider qualitative and
quantitative) justifying the
recommendation.
- Identification of Risks and LT/ST
implications of recommendation.
- "Capital light" strategies such as
alliances, outsourcing or licensing
considered as alternatives.
- Innovation in insights.
How
(2%)
- Detailed format for
calculation that allows
replication.
- Commentary demonstrates
overlay of judgement in
developing estimate.
- Document is properly
lodged.
- Evidence of reference to
reports by the industry,
regulators or NGOs.
- Clear linkage of
identification, management
and reporting of risks.
- Commentary supports
major assessments made
in developing
recommendations.
- Use of supporting
graphics/tables.
- Document is properly
lodged.
- Considers a number of lenses:
theory. comparable company
analysis, company specific
factors.
- Commentary supports major
assessments made in developing
recommendation.
- Use of supporting
graphics/tables.
- Document is properly lodged.
- Evidence that broad range of
potential funding sources and
funding markets considered.
- Commentary supports major
assessments made in developing
recommendation.
- Use of supporting graphics/tables.
- Document is properly lodged.
- Considers a number of lenses:
theory, comparable company
analysis, company specific factors.
- Commentary supports major
assessments made in developing
recommendation.
- Use of supporting graphics/tables.
- Document is properly lodged.
- Provide evidence of screening
process in relation to potential
acquisition/investment targets.
- Identification of impact of
recommendation on: capital
structure, payout policy and any
other relevant metrics.
- Commentary supports major
assessments made in developing
recommendation.
- Use of supporting graphics/tables.
- Document is properly lodged.
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