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金融代写-MSIN0224
时间：2022-02-26
Published 20th October 2021
Coursework Assessment Brief
Module code/name MSIN0224
Module leader name Leila Pinto Campillo
Academic year 2021/22
Term 2
Assessment title Coursework
Individual/group assessment Individual
Return and status of marked assessments: Within 4 weeks from the date of submission as per UCL guidelines. The
module team will update you if there are delays through unforeseen circumstances (e.g. ill health). All results when
first published are provisional until confirmed by the Examination Board.
Copyright Note to students: Copyright of this assessment brief is with the module leader(s) named above. If this
brief draws upon work by third parties (e.g. Case Study publishers) such third parties also hold copyright. It must not
be copied, reproduced, transferred, distributed, leased, licensed or shared any other individual(s) and/or
organisations, including web-based organisations, without permission of the copyright holder(s).
Academic Misconduct: Academic Misconduct is defined as any action or attempted action that may result in a
student obtaining an unfair academic advantage. Academic misconduct includes plagiarism, obtaining help
from/sharing work with others be they individuals and/or organisations or any other form of cheating. Refer to
Academic Manual Section 9: Student Academic Misconduct Procedure - 9.2 Definitions.
Referencing: You must reference and provide full citation for ALL sources used, including articles, text books, lecture
slides and module materials. This includes any direct quotes and paraphrased text. If in doubt, reference it. If you
need further guidance on referencing please see UCL’s referencing tutorial for students here: https://library-
guides.ucl.ac.uk/referencing-plagiarism/welcome. Failure to cite references correctly may result in your work being
referred to the Academic Misconduct Panel.
Content of this assessment brief
Section Content
A Core information
B Coursework brief and requirements
C Module learning outcomes covered in this assessment
D Groupwork instructions (if applicable)
E How your work is assessed
F Additional information
Published 20th October 2021
Section A: Core information
Submission date 16/03/2022
Submission time 10AM
Assessment is marked out of: 100
% weighting of this assessment
within total module mark
100%
Maximum word count/page
length/duration
3000 words
Footnotes, appendices, tables,
figures, diagrams, charts included
in/excluded from word count/page
length?
Footnotes, appendices, tables, figures, diagrams and charts are
EXCLUDED from the word count.
Bibliographies, reference lists
included in/excluded from word
count/page length?
Bibliography and reference lists are EXCLUDED from the word
count.
Penalty for exceeding word
count/page length
Standard UCL penalties for exceeding (deduction of 10
percentage points, capped at 40% for Levels 4,5, 6, and 50% for
Level 7) Refer to Academic Manual Section 3: Module
Assessment - 3.13 Word Counts.
Penalty for late submission Standard UCL penalties apply. Students should refer to Refer to
https://www.ucl.ac.uk/academic-manual/chapters/chapter-4-
assessment-framework-taught-programmes/section-3-module-
assessment#3.12
Submitting your assessment Submit your assessment in one file only in PDF. Only one PDF
file per submission will be marked.
Do not submit excel workings, please copy and paste your excel
workings in your PDF as an appendix.
Anonymity of identity. Normally, all
submissions are anonymous unless
the nature of the submission is such
that anonymity is not appropriate,
illustratively as in presentations or
where minutes of group meetings
are required as part of a group work
submission
The nature of this assessment is such that anonymity is required.
Published 20th October 2021
Section B: Assessment Brief and Requirements
This assignment comprises three (3) parts, all parts are unrelated.
Part A has 1 question. This part carries 25 marks.
Part B has 1 question. In this part you are required to say if the statements presented are true or false,
and justify your decision. This part carries 20 marks.
Part C is a valuation exercise in an M&A deal. You are required to calculate the value of the target
company with and without improvements and the value of the combined firm after the acquisition takes
place. PART C has 8 questions and carries 55 marks. Marks for each question are as indicated. Use Excel
to create your workings/answers and thereafter cut and paste your workings/answer into your word/pdf
document.
Total: 10 questions and 100 marks
PART A: 25 marks
Please read the following article from Market Watch published on the 8th of February, 2022.
“Shares of DuPont de Nemours Inc. DD, -1.39% rose 0.6% in premarket trading Tuesday, after the
technology-based materials company reported fourth-quarter earnings that beat expectations, provided
an upbeat sales outlook, raised its dividend by 10% and set a new $1 billion stock buyback program. Net
income fell was $204 million, or 39 cents a share, including 8 cents a share, in discontinued operations,
after income of $222 million, or 30 cents a share, including discontinued operations of 30 cents a share.
Excluding nonrecurring items, adjusted earnings per share came to $1.08, above the FactSet consensus of
99 cents. Sales grew 13.9% to $4.27 billion, beating the FactSet consensus of $4.03 billion, Electronics and
industrial sales rose 19% to $1.5 billion, water and protection sales increased 16% to $1.4 billion and
mobility and materials sales grew 12% to $1.3 billion. Separately, the company raised its quarterly
dividend to 33 cents a share from 30 cents, with the new dividend payable March 15 to shareholders of
record on Feb. 28. For 2022, the company expects adjusted EPS of $4.60 to $4.90 and sales of $17.4 billion
to $17.8 billion, compared with the FactSet consensus for EPS of $4.88 and for sales of $7.09 billion. The
stock has lost 5.2% over the past three months while the S&P 500 SPX, -1.99% has slipped 4.6%.”
Question A1 [25 marks]
Based on DuPont de Nemours Inc publicly available information/data from January 2014 to February 2022,
including the company dividend history,
a) Mention the type(s) of dividend policy the company shows from January 2014 to the end of
February 2022. [5 marks]
b) Explain in depth if and how changes in the dividend policy are supported by the company changes
in earnings per share (EPS), cash flows, debt obligations and CAPEX requirements during the study
period. [12 marks]
c) Based on your answers in question A1-b, explain if the current company dividend policy is
sustainable over time. Reason your answer. [4 marks]
d) What type of clientele (shareholders) does the company attract with its long-term dividend
strategy? [4 marks]
You may use Refinitiv and/or public sources (the company investors web site, yahoo finance, etc) to
search data on the company. Make sure you reference appropriately.
Published 20th October 2021
PART B: 20 marks
Question B1 [20 marks]
Indicate if the following statements are TRUE or FALSE (1 mark). Justify your decision (4 marks). Total 5
marks per question.
B1-a
“Acquisitions are the largest and most important corporate investments in the entire life of a firm which
are often associated with significant losses [particularly in public deals]. The correlation between CEO
over- confidence and value destruction is close to zero.” [5 marks: 1+4]
B1-b
“Cash payment has proven to be important for private targets because of their desire for liquidity. Owners
of privately- held firms who have a desire for liquidity are willing to accept lower premiums from liquid
bidders (e.g. trading on the New York Stock Exchange - NYSE).” [5 marks: 1+4]
B1-c
“The final price paid for a company in an M&A deal is only determined by firm characteristics and
potential synergies that can be realized. “[5 marks: 1+4]
B1-d
“There is a general believe that firms conduct IPOs when other financial sources are not available because
of a high leverage” [5 marks: 1+4]
PART C: 55 marks
As an analyst for Lehman Sisters Bank you were tasked to analyse a prospective acquisition deal whereby
Company A PLC (referred to as “A”) wishes to acquire Company B LTD (referred to as “B”). A expects
synergies in the form of cost savings and higher sales growth.
The 10-year Treasury bond rate is 1.94%, the equity risk premium is 5.6%, and the marginal tax rate is
19%. All growth numbers in this exercise are compounded annually.
Company B has the following characteristics for the current period:
Revenue = £37400million
Operating margin before tax= 22.00%
Unlevered beta = 1.2
Before tax cost of debt = 7%
Debt ratio = 25%.
Operating income is expected to grow at the rate of 15% a year for the next five years. The Return on
Capital (ROC) is equal to 40% and is expected to remain so for the next five years. After Year 5, operating
income is expected to grow at the rate of 5% a year forever, while the ROC as above is expected to
stabilize at 20% forever.
Published 20th October 2021
Company A assumes the value of control would come from the following improvements:
Company A wants to raise Company’s B debt ratio to its optimal level of 50%. Despite a sharp
increase in the debt level of “B”, Company A expects a reduction in the operating risk of the firm
after the deal is executed, hence a decrease in B’s unlevered Beta to 0.8.
The before tax cost of debt will drop to 5%.
Company A will maximise synergies and increase “B” operating margin to 25%
During this stage, company “B” will continue growing its operating income as it did before the
acquisition.
Company A data is as follows for the current period:
Revenue = £748,000 million
Operating margin before tax = 17%
Levered beta = 1
Before tax cost of debt = 5.00%
Debt ratio = 50%
Operating income is expected to grow at the rate of 6% a year for the next five years. During the next five
years, the reinvestment rate remains constant at 30%. After Year 5, operating income is expected to
grow at 3% a year forever, while the reinvestment rate falls to 20% a year in perpetuity. The long-term
strategy of the firm after Year is to maintain a debt to capital ratio of 50% and a constant pre-tax cost of
debt to 5%.
The combined firm
The operating margin of the combined firm will be 19% with a forecasted annual operating margin growth
rate of 6% over the next five years and in perpetuity.
During the high growth stage (5 years), the reinvestment rate would be the sum of the reinvestments of
the two individual firms (simple average). The combined before tax cost of debt, levered Beta and debt to
capital ratio are 5%, 1 and 50% respectively. After Year 5, the reinvestment rate stabilizes at 20%, while
the operating income is expected to grow at 3% forever. The levered Beta, before tax cost of debt and
debt to capital ratio will remain 1, 5% and 50% respectively, forever.
Question C1 [ 5 marks]
Calculate the current weighted average cost of capital (WACC) for Company B. [5 marks]
Question C2 [ 8 marks]
Obtain the status quo value of Company B. the status quo value is the same as the enterprise value
(consider the high growth and the stable growth stage.) [8 marks]
Question C3 [ 5 marks]
What would be Company B weighted average cost of capital (WACC) after the acquisition?
Question C4 [8 marks]
Obtain the new value of Company B after the acquisition, assuming that all the improvements have been
implemented. Note that Company B has not been integrated yet, hence operating margin growth rates
are the same as before the acquisition. [8 marks]
Published 20th October 2021
Question C5 [3 marks]
Compute the value of control. [3 marks]
Question C6 [8 marks]
Compute WACC for the combined firm and the combined enterprise value. Don’t forget the synergies! [8
marks]
Question C7 [8 marks]
The status quo value of Company A is £3,800,000 million (use this value in your calculations). Assume that
Company B has 150,000 million shares outstanding and a market value of debt of £55,000 million.
a)Calculate the maximum price per share that “A” should be willing to pay for “B” if it takes three years for
control and synergies to materialize. [6 marks]
b) Calculate the premium that “A” would need to pay to “B” [2 marks]
Question C8 [10 marks]
This question is not related to questions C1 to C7.
C8-a
Explain in detail how to obtain a company stock price through relative valuation applying
The PE ratio
The EV/EBITDA ratio.
C8-b
Indicate, in bullet points, one advantage and one challenge per ratio that companies face when using
these multiples in relative valuation. [10 marks, 5 each ratio]
Published 20th October 2021
Section C: Module Learning Outcomes covered in this
Assessment
This assessment contributes towards the achievement of the following stated module Learning
Outcomes as highlighted below:
1. Understand how international capital markets work, and assess their effectiveness.
2. Understand, critique and evaluate differing approaches to Dividend Policy.
3. Perform company valuation through conventional techniques (DCF) and relative valuation
(multiples); as a consequence be able to analyse the viability of leveraged by out (LBO)
deals.
4. Comprehend the nature of mergers in today’s global financial markets.
5. Understand the IPOs process and its purpose of as a source of value creation.
Published 20th October 2021
Section D: Groupwork Instructions (where
relevant/appropriate)
This is INDIVIDUAL work, only; no part of this work is to involve communication or/and coordination with
anyone else, at any stage in the development process”.
Published 20th October 2021
Section E: How your work is assessed
Within each section of this assessment you may be assessed on the following aspects, as applicable and
appropriate to this assessment, and should thus consider these aspects when fulfilling the requirements of
each section:
The accuracy of any calculations required.
The strengths and quality of your overall analysis and evaluation;
Appropriate use of relevant theoretical models, concepts and frameworks;
The rationale and evidence that you provide in support of your arguments;
The credibility and viability of the evidenced conclusions/recommendations/plans of action
you put forward;
Structure and coherence of your considerations and reports;
Appropriate and relevant use of, as and where relevant and appropriate, real world examples,
academic materials and referenced sources. Any references should use either the Harvard OR
Vancouver referencing system (see References, Citations and Avoiding Plagiarism)
Academic judgement regarding the blend of scope, thrust and communication of ideas,
contentions, evidence, knowledge, arguments, conclusions.
Each assessment requirement(s) has allocated marks/weightings.
Student submissions are reviewed/scrutinised by and internal assessor and are available to an External
Examiner for further review/scrutiny before consideration by the relevant Examination Board.
It is not uncommon for some students to feel that their submissions deserve higher marks (irrespective of
whether they actually deserve higher marks). To help you assess the relative strengths and weaknesses of
your submission please refer to UCL Assessment Criteria Guidelines, located at
https://www.ucl.ac.uk/teaching-learning/sites/teaching-learning/files/migrated-
files/UCL_Assessment_Criteria_Guide.pdf
The above is an important link as it specifies the criteria for attaining 85% +, 70% to 84%, 60% to 69%, 50%
to 59%, 40% to 49%, below 40%.
You are strongly advised to not compare your mark with marks of other submissions from your student
colleagues. Each submission has its own range of characteristics which differ from others in terms of
breadth, scope, depth, insights, and subtleties and nuances. On the surface one submission may appear to
be similar to another but invariably, digging beneath the surface reveals a range of differing
characteristics.
Published 20th October 2021
Section F: Additional information from module leader
(as appropriate)
Avoid copying and pasting from public sources, books, notes and from the slides, it is not scholarship and
it could lead to your work being investigated by the SoM Misconduct Panel.
If you use external sources, make sure you reference: in text AND at the end of the report. Use Harvard
referencing style.
This assessment requires external research.
I won’t be able to answer any questions related to the workings on the assessment given that you will be
under exam conditions.
Coursework Assessment Brief
Module code/name MSIN0224
Module leader name Leila Pinto Campillo
Academic year 2021/22
Term 2
Assessment title Coursework
Individual/group assessment Individual
Return and status of marked assessments: Within 4 weeks from the date of submission as per UCL guidelines. The
module team will update you if there are delays through unforeseen circumstances (e.g. ill health). All results when
first published are provisional until confirmed by the Examination Board.
Copyright Note to students: Copyright of this assessment brief is with the module leader(s) named above. If this
brief draws upon work by third parties (e.g. Case Study publishers) such third parties also hold copyright. It must not
be copied, reproduced, transferred, distributed, leased, licensed or shared any other individual(s) and/or
organisations, including web-based organisations, without permission of the copyright holder(s).
Academic Misconduct: Academic Misconduct is defined as any action or attempted action that may result in a
student obtaining an unfair academic advantage. Academic misconduct includes plagiarism, obtaining help
from/sharing work with others be they individuals and/or organisations or any other form of cheating. Refer to
Academic Manual Section 9: Student Academic Misconduct Procedure - 9.2 Definitions.
Referencing: You must reference and provide full citation for ALL sources used, including articles, text books, lecture
slides and module materials. This includes any direct quotes and paraphrased text. If in doubt, reference it. If you
need further guidance on referencing please see UCL’s referencing tutorial for students here: https://library-
guides.ucl.ac.uk/referencing-plagiarism/welcome. Failure to cite references correctly may result in your work being
referred to the Academic Misconduct Panel.
Content of this assessment brief
Section Content
A Core information
B Coursework brief and requirements
C Module learning outcomes covered in this assessment
D Groupwork instructions (if applicable)
E How your work is assessed
F Additional information
Published 20th October 2021
Section A: Core information
Submission date 16/03/2022
Submission time 10AM
Assessment is marked out of: 100
% weighting of this assessment
within total module mark
100%
Maximum word count/page
length/duration
3000 words
Footnotes, appendices, tables,
figures, diagrams, charts included
in/excluded from word count/page
length?
Footnotes, appendices, tables, figures, diagrams and charts are
EXCLUDED from the word count.
Bibliographies, reference lists
included in/excluded from word
count/page length?
Bibliography and reference lists are EXCLUDED from the word
count.
Penalty for exceeding word
count/page length
Standard UCL penalties for exceeding (deduction of 10
percentage points, capped at 40% for Levels 4,5, 6, and 50% for
Level 7) Refer to Academic Manual Section 3: Module
Assessment - 3.13 Word Counts.
Penalty for late submission Standard UCL penalties apply. Students should refer to Refer to
https://www.ucl.ac.uk/academic-manual/chapters/chapter-4-
assessment-framework-taught-programmes/section-3-module-
assessment#3.12
Submitting your assessment Submit your assessment in one file only in PDF. Only one PDF
file per submission will be marked.
Do not submit excel workings, please copy and paste your excel
workings in your PDF as an appendix.
Anonymity of identity. Normally, all
submissions are anonymous unless
the nature of the submission is such
that anonymity is not appropriate,
illustratively as in presentations or
where minutes of group meetings
are required as part of a group work
submission
The nature of this assessment is such that anonymity is required.
Published 20th October 2021
Section B: Assessment Brief and Requirements
This assignment comprises three (3) parts, all parts are unrelated.
Part A has 1 question. This part carries 25 marks.
Part B has 1 question. In this part you are required to say if the statements presented are true or false,
and justify your decision. This part carries 20 marks.
Part C is a valuation exercise in an M&A deal. You are required to calculate the value of the target
company with and without improvements and the value of the combined firm after the acquisition takes
place. PART C has 8 questions and carries 55 marks. Marks for each question are as indicated. Use Excel
to create your workings/answers and thereafter cut and paste your workings/answer into your word/pdf
document.
Total: 10 questions and 100 marks
PART A: 25 marks
Please read the following article from Market Watch published on the 8th of February, 2022.
“Shares of DuPont de Nemours Inc. DD, -1.39% rose 0.6% in premarket trading Tuesday, after the
technology-based materials company reported fourth-quarter earnings that beat expectations, provided
an upbeat sales outlook, raised its dividend by 10% and set a new $1 billion stock buyback program. Net
income fell was $204 million, or 39 cents a share, including 8 cents a share, in discontinued operations,
after income of $222 million, or 30 cents a share, including discontinued operations of 30 cents a share.
Excluding nonrecurring items, adjusted earnings per share came to $1.08, above the FactSet consensus of
99 cents. Sales grew 13.9% to $4.27 billion, beating the FactSet consensus of $4.03 billion, Electronics and
industrial sales rose 19% to $1.5 billion, water and protection sales increased 16% to $1.4 billion and
mobility and materials sales grew 12% to $1.3 billion. Separately, the company raised its quarterly
dividend to 33 cents a share from 30 cents, with the new dividend payable March 15 to shareholders of
record on Feb. 28. For 2022, the company expects adjusted EPS of $4.60 to $4.90 and sales of $17.4 billion
to $17.8 billion, compared with the FactSet consensus for EPS of $4.88 and for sales of $7.09 billion. The
stock has lost 5.2% over the past three months while the S&P 500 SPX, -1.99% has slipped 4.6%.”
Question A1 [25 marks]
Based on DuPont de Nemours Inc publicly available information/data from January 2014 to February 2022,
including the company dividend history,
a) Mention the type(s) of dividend policy the company shows from January 2014 to the end of
February 2022. [5 marks]
b) Explain in depth if and how changes in the dividend policy are supported by the company changes
in earnings per share (EPS), cash flows, debt obligations and CAPEX requirements during the study
period. [12 marks]
c) Based on your answers in question A1-b, explain if the current company dividend policy is
sustainable over time. Reason your answer. [4 marks]
d) What type of clientele (shareholders) does the company attract with its long-term dividend
strategy? [4 marks]
You may use Refinitiv and/or public sources (the company investors web site, yahoo finance, etc) to
search data on the company. Make sure you reference appropriately.
Published 20th October 2021
PART B: 20 marks
Question B1 [20 marks]
Indicate if the following statements are TRUE or FALSE (1 mark). Justify your decision (4 marks). Total 5
marks per question.
B1-a
“Acquisitions are the largest and most important corporate investments in the entire life of a firm which
are often associated with significant losses [particularly in public deals]. The correlation between CEO
over- confidence and value destruction is close to zero.” [5 marks: 1+4]
B1-b
“Cash payment has proven to be important for private targets because of their desire for liquidity. Owners
of privately- held firms who have a desire for liquidity are willing to accept lower premiums from liquid
bidders (e.g. trading on the New York Stock Exchange - NYSE).” [5 marks: 1+4]
B1-c
“The final price paid for a company in an M&A deal is only determined by firm characteristics and
potential synergies that can be realized. “[5 marks: 1+4]
B1-d
“There is a general believe that firms conduct IPOs when other financial sources are not available because
of a high leverage” [5 marks: 1+4]
PART C: 55 marks
As an analyst for Lehman Sisters Bank you were tasked to analyse a prospective acquisition deal whereby
Company A PLC (referred to as “A”) wishes to acquire Company B LTD (referred to as “B”). A expects
synergies in the form of cost savings and higher sales growth.
The 10-year Treasury bond rate is 1.94%, the equity risk premium is 5.6%, and the marginal tax rate is
19%. All growth numbers in this exercise are compounded annually.
Company B has the following characteristics for the current period:
Revenue = £37400million
Operating margin before tax= 22.00%
Unlevered beta = 1.2
Before tax cost of debt = 7%
Debt ratio = 25%.
Operating income is expected to grow at the rate of 15% a year for the next five years. The Return on
Capital (ROC) is equal to 40% and is expected to remain so for the next five years. After Year 5, operating
income is expected to grow at the rate of 5% a year forever, while the ROC as above is expected to
stabilize at 20% forever.
Published 20th October 2021
Company A assumes the value of control would come from the following improvements:
Company A wants to raise Company’s B debt ratio to its optimal level of 50%. Despite a sharp
increase in the debt level of “B”, Company A expects a reduction in the operating risk of the firm
after the deal is executed, hence a decrease in B’s unlevered Beta to 0.8.
The before tax cost of debt will drop to 5%.
Company A will maximise synergies and increase “B” operating margin to 25%
During this stage, company “B” will continue growing its operating income as it did before the
acquisition.
Company A data is as follows for the current period:
Revenue = £748,000 million
Operating margin before tax = 17%
Levered beta = 1
Before tax cost of debt = 5.00%
Debt ratio = 50%
Operating income is expected to grow at the rate of 6% a year for the next five years. During the next five
years, the reinvestment rate remains constant at 30%. After Year 5, operating income is expected to
grow at 3% a year forever, while the reinvestment rate falls to 20% a year in perpetuity. The long-term
strategy of the firm after Year is to maintain a debt to capital ratio of 50% and a constant pre-tax cost of
debt to 5%.
The combined firm
The operating margin of the combined firm will be 19% with a forecasted annual operating margin growth
rate of 6% over the next five years and in perpetuity.
During the high growth stage (5 years), the reinvestment rate would be the sum of the reinvestments of
the two individual firms (simple average). The combined before tax cost of debt, levered Beta and debt to
capital ratio are 5%, 1 and 50% respectively. After Year 5, the reinvestment rate stabilizes at 20%, while
the operating income is expected to grow at 3% forever. The levered Beta, before tax cost of debt and
debt to capital ratio will remain 1, 5% and 50% respectively, forever.
Question C1 [ 5 marks]
Calculate the current weighted average cost of capital (WACC) for Company B. [5 marks]
Question C2 [ 8 marks]
Obtain the status quo value of Company B. the status quo value is the same as the enterprise value
(consider the high growth and the stable growth stage.) [8 marks]
Question C3 [ 5 marks]
What would be Company B weighted average cost of capital (WACC) after the acquisition?
Question C4 [8 marks]
Obtain the new value of Company B after the acquisition, assuming that all the improvements have been
implemented. Note that Company B has not been integrated yet, hence operating margin growth rates
are the same as before the acquisition. [8 marks]
Published 20th October 2021
Question C5 [3 marks]
Compute the value of control. [3 marks]
Question C6 [8 marks]
Compute WACC for the combined firm and the combined enterprise value. Don’t forget the synergies! [8
marks]
Question C7 [8 marks]
The status quo value of Company A is £3,800,000 million (use this value in your calculations). Assume that
Company B has 150,000 million shares outstanding and a market value of debt of £55,000 million.
a)Calculate the maximum price per share that “A” should be willing to pay for “B” if it takes three years for
control and synergies to materialize. [6 marks]
b) Calculate the premium that “A” would need to pay to “B” [2 marks]
Question C8 [10 marks]
This question is not related to questions C1 to C7.
C8-a
Explain in detail how to obtain a company stock price through relative valuation applying
The PE ratio
The EV/EBITDA ratio.
C8-b
Indicate, in bullet points, one advantage and one challenge per ratio that companies face when using
these multiples in relative valuation. [10 marks, 5 each ratio]
Published 20th October 2021
Section C: Module Learning Outcomes covered in this
Assessment
This assessment contributes towards the achievement of the following stated module Learning
Outcomes as highlighted below:
1. Understand how international capital markets work, and assess their effectiveness.
2. Understand, critique and evaluate differing approaches to Dividend Policy.
3. Perform company valuation through conventional techniques (DCF) and relative valuation
(multiples); as a consequence be able to analyse the viability of leveraged by out (LBO)
deals.
4. Comprehend the nature of mergers in today’s global financial markets.
5. Understand the IPOs process and its purpose of as a source of value creation.
Published 20th October 2021
Section D: Groupwork Instructions (where
relevant/appropriate)
This is INDIVIDUAL work, only; no part of this work is to involve communication or/and coordination with
anyone else, at any stage in the development process”.
Published 20th October 2021
Section E: How your work is assessed
Within each section of this assessment you may be assessed on the following aspects, as applicable and
appropriate to this assessment, and should thus consider these aspects when fulfilling the requirements of
each section:
The accuracy of any calculations required.
The strengths and quality of your overall analysis and evaluation;
Appropriate use of relevant theoretical models, concepts and frameworks;
The rationale and evidence that you provide in support of your arguments;
The credibility and viability of the evidenced conclusions/recommendations/plans of action
you put forward;
Structure and coherence of your considerations and reports;
Appropriate and relevant use of, as and where relevant and appropriate, real world examples,
academic materials and referenced sources. Any references should use either the Harvard OR
Vancouver referencing system (see References, Citations and Avoiding Plagiarism)
Academic judgement regarding the blend of scope, thrust and communication of ideas,
contentions, evidence, knowledge, arguments, conclusions.
Each assessment requirement(s) has allocated marks/weightings.
Student submissions are reviewed/scrutinised by and internal assessor and are available to an External
Examiner for further review/scrutiny before consideration by the relevant Examination Board.
It is not uncommon for some students to feel that their submissions deserve higher marks (irrespective of
whether they actually deserve higher marks). To help you assess the relative strengths and weaknesses of
your submission please refer to UCL Assessment Criteria Guidelines, located at
https://www.ucl.ac.uk/teaching-learning/sites/teaching-learning/files/migrated-
files/UCL_Assessment_Criteria_Guide.pdf
The above is an important link as it specifies the criteria for attaining 85% +, 70% to 84%, 60% to 69%, 50%
to 59%, 40% to 49%, below 40%.
You are strongly advised to not compare your mark with marks of other submissions from your student
colleagues. Each submission has its own range of characteristics which differ from others in terms of
breadth, scope, depth, insights, and subtleties and nuances. On the surface one submission may appear to
be similar to another but invariably, digging beneath the surface reveals a range of differing
characteristics.
Published 20th October 2021
Section F: Additional information from module leader
(as appropriate)
Avoid copying and pasting from public sources, books, notes and from the slides, it is not scholarship and
it could lead to your work being investigated by the SoM Misconduct Panel.
If you use external sources, make sure you reference: in text AND at the end of the report. Use Harvard
referencing style.
This assessment requires external research.
I won’t be able to answer any questions related to the workings on the assessment given that you will be
under exam conditions.
