Question 1
• a.Analyse the current forms of finance available to the Fusion Group.
• b.Recommend improvements in how the Group finances its business operation.
• c.Evaluate the three debt finance proposals outlined in Appendix five and recommend which should be chosen.
• a.Evaluate the proposal to move the manufacturing facility from China to Mexico (Appendix 6), using NPV analysis.
• b.Discuss the foreign exchange risk associated with the project.
• c.Evaluate the decision to use the overall Group cost of capital for the NPV analysis.
You barely answered the first two points of the first question. Further, you are to elaborate on forms of finance and not sources.
You can find the questions in the file named “TMA02_Questions.” Remember to back up your answers with reliable scholarly references.
The mark for plagiarism is low because there is nothing to check.
Question 1 has a word limit of 1800, the words used are 1182, this is not close enough to the allocated word count, and therefore it would not be possible that all the relevant points are discussed.
Q1a – don’t just list the forms of finance, say whether they would be a good source or not and explain why, for example:
An IPO, while lower risk after shares have been issued and taken up by investors, will be affected by Fusion Group’s ability to sell itself as a dynamic business which can manage the expansion, as well as manage day to day activities in order to keep cash flowing into the business. This is purely an example this is not to say this analysis is correct.
accepted
Q1c – This question is asking you to evaluate the debt finance proposals. Specifically, you should assess:
– how will the security interact or impact the existing debt finance within the company and the Group?
– current overall gearing
– loan to value (LTV) ratio
– revaluation of properties
– refinancing risk
– interest cover analysis
– interest rate risk
Based on your analysis, you should provide a recommendation, advising the Group which proposal would be the best fit.
Show any and all working out.
Any working outs to try and limit them to tables, this is for better presentation and hence better understanding. For example I am having a hard time concluding Question 2a, the NPV analysis. There’s plenty of calculations, just no evaluations of the calculations, which is what the question is. You are also required to discuss the non-financial considerations that need to be factored into the decision-making process.
A lot has been used for q2b from this website, however, I can see some texts are word-for-word, please rephrase them. Also you are required to provide detailed analyses of the options that can be used to manage currency risk.
accepted
For most if not all questions, continuously refer back to the case study provided and reference it where necessary.
The presentation as a whole could be much better also, use clear subheadings for each question and sub-question, space where necessary etc.
