Alternative investment market

Requirements:This assignment asks you to complete a maximum of TWO (2) tasks, with EACH task carrying a maximum mark of 50%. Please Note: You are answering both tasks as a trainee financial advisor with Bloomdale. All knowledge and Skills will be assessed. Knowledge 1. A clear understanding of the appropriate theories, principles, concepts and financial tools associated with financial strategic decisions. 2. Describe with some critical reflection upon key issues involved in the effective management of the finance employed to operate and manage a businessorganisation. 3. Apply theoretical concepts, frameworks and mathematical tools to enable proposed solutions to a range of business problems. Skills 4. Demonstrate cognitive skills of critical thinking and analysis, combined with discussion skills required to communicate effectively using written means The University policy on cheating collusion and plagiarism will be applied to this piece of work. Part A: Task 1 is compulsory (therefore to be completed by all students). Virtual e-commerce Development (VeD) Ltd was formed in 2008 by the entrepreneurs Daniel and Sara Brand. Under their vision and management the business grew organically and became a very respected and proactive technology business in the e-commerce space. This growth was financed by a mixture of retained profits and peer to peer lending. In 2013 the business was listed in the digital leader top 100 businesses. This opened up new markets for VeD, and highlighted the need to raise a large amount of new capital. Not wishing to source from either venture capital or the main capital market VeD listed on the junior market, the London Stock Exchange (LSE) Alternative Investment Market with an IPO resulting in an all (100%) equity capital structure. In 2016 it will be necessary to return to the capital market to raise an additional 1 billion of capital. Required. The original founder and now Chief Executive (CEO) of Virtual e-commerce Development (VeD) Ltd became a client of Bloomdale Financial group which offer personal development and business support to help the company grow and deliver quality. Daniel in his capacity as CEO admits to having; i. Some confusion and lack of understanding as to what is meant by capital market efficiency ii. How in practice, the capital market operates in an efficient way, if at all. He has asked therefore that his personal business advisor at Bloomdale provides a report which contains the necessary comprehensive information to clear the confusion. This request has been passed to yourself to complete. Task Guidance (50%) In this section students should demonstrate understanding, knowledge, and an ability to comprehensively analyse and explain the theoretical viewpoints associated with capital market efficiency. The evaluation should provide evidence of wider reading including some reference to current practice and opinion, and incorporate a balanced viewpoint rather than overly describing the recognised theory. The inclusion of relevant numerical examples with supporting analysis to develop and enhance the response would be advantageous although should not form the main thrust of the work. Part B: A choice of either task two (2) OR task three (3). Task 2. In preparation for the 2016 return to the Alternative Investment Market the current financial director (Sara Brand) has identified company issued debt as a possible source of finance for the capital budget. Sara recognises she has only a limited knowledge and understanding of the cost of company issued debt and has independently requested an additional report containing detailed information which will influence her final decision. Your line manager has suggested that you organise your discussion to address each of the following; (adding that you should include any other information you consider relevant). i. The cost ii. The financial risk iii. Any effect on shareholder wealth (50%) Task 3. Moving into new markets and products requires the board of directors of VeD to set a new medium to long term strategy for the company. At a recent board meeting the question of setting a dividend policy was raised. The initial reaction of the board was to reject the idea, however the CEO suggested they obtain further information from their Bloomdale financial advisor and have emailed such a request. Your line manager has suggested that during your response some consideration be given to the following; (adding that you should include this within any other information you consider relevant). i. The cost ii. The financial risk iii. Any effect on shareholder wealth Task Guidance: In this section students should identify why a dividend policy may not be set by any company, demonstrate a clear understanding and knowledge of both the reasons supporting and rejecting the setting of a dividend policy and how this can impact upon (affect) the medium to long term strategy. The email response should demonstrate evidence of some wider reading, knowledge and understanding of key academic theory, tools for financial analysis and the application of a dividend policy within a real-life business context, clearly identifying what are the common forms of dividend policy, if set. Real-life examples can be drawn from research data, the current financial analysis of respected analysts. It can also be drawn from differing countries, industries and individual businesses. The inclusion of relevant numerical examples to develop and enhance the response would be advantageous although should not form the main focus of the submission. (50%) Assignment Guidance: Students should approach this assignment as a formal report which provides a balanced argument throughout. Weighing the arguments for and against adopting a particular strategy (plan of action) or policy, making some comment on the literature both academic and empirical (drawn from current research, statistics and real world examples) and drawing logical conclusions. Academic referencing using the Harvard referencing approach is a key requirement of the assignment to demonstrate wider reading and relevant depth given to the discussion and /or proposals. UGB254 The Fundamentals of Business Individual assignment Weighting 100% of the marks for this module This is an individual assignment of 3,000 words. (+ or 10%) The hand in date is: Tuesday 19thJanuary by 4.00p.m. Requirements: This assignment asks you to complete a maximum of TWO (2) tasks, with EACH task carrying a maximum mark of 50%. Please Note: You are answering both tasks as a trainee financial advisor with Bloomdale. All knowledge and Skills will be assessed. Knowledge 1. A clear understanding of the appropriate theories, principles, concepts and financial tools associated with financial strategic decisions. 2. Describe with some critical reflection upon key issues involved in the effective management of the finance employed to operate and manage a businessorganisation. 3. Apply theoretical concepts, frameworks and mathematical tools to enable proposed solutions to a range of business problems. Skills 4. Demonstrate cognitive skills of critical thinking and analysis, combined with discussion skills required to communicate effectively using written means The University policy on cheating collusion and plagiarism will be applied to this piece of work. Part A: Task 1 is compulsory (therefore to be completed by all students). Virtual e-commerce Development (VeD) Ltd was formed in 2008 by the entrepreneurs Daniel and Sara Brand. Under their vision and management the business grew organically and became a very respected and proactive technology business in the e-commerce space. This growth was financed by a mixture of retained profits and peer to peer lending. In 2013 the business was listed in the digital leader top 100 businesses. This opened up new markets for VeD, and highlighted the need to raise a large amount of new capital. Not wishing to source from either venture capital or the main capital market VeD listed on the junior market, the London Stock Exchange (LSE) Alternative Investment Market with an IPO resulting in an all (100%) equity capital structure. In 2016 it will be necessary to return to the capital market to raise an additional 1 billion of capital. Required. The original founder and now Chief Executive (CEO) of Virtual e-commerce Development (VeD) Ltd became a client of Bloomdale Financial group which offer personal development and business support to help the company grow and deliver quality. Daniel in his capacity as CEO admits to having; i. Some confusion and lack of understanding as to what is meant by capital market efficiency ii. How in practice, the capital market operates in an efficient way, if at all. He has asked therefore that his personal business advisor at Bloomdale provides a report which contains the necessary comprehensive information to clear the confusion. This request has been passed to yourself to complete. Task Guidance (50%) In this section students should demonstrate understanding, knowledge, and an ability to comprehensively analyse and explain the theoretical viewpoints associated with capital market efficiency. The evaluation should provide evidence of wider reading including some reference to current practice and opinion, and incorporate a balanced viewpoint rather than overly describing the recognised theory. The inclusion of relevant numerical examples with supporting analysis to develop and enhance the response would be advantageous although should not form the main thrust of the work. Part B: A choice of either task two (2) or task three (3). Task 2. In preparation for the 2016 return to the Alternative Investment Market the current financial director (Sara Brand) has identified company issued debt as a possible source of finance for the capital budget. Sara recognises she has only a limited knowledge and understanding of the cost of company issued debt and has independently requested an additional report containing detailed information which will influence her final decision. Your line manager has suggested that you organise your discussion to address each of the following; (adding that you should include any other information you consider relevant). i. The cost ii. The financial risk iii. Any effect on shareholder wealth (50%) Task 3. Moving into new markets and products requires the board of directors of VeD to set a new medium to long term strategy for the company. At a recent board meeting the question of setting a dividend policy was raised. The initial reaction of the board was to reject the idea, however the CEO suggested they obtain further information from their Bloomdale financial advisor and have emailed such a request. Your line manager has suggested that during your response some consideration be given to the following; (adding that you should include this within any other information you consider relevant). i. The cost ii. The financial risk iii. Any effect on shareholder wealth Task Guidance: In this section students should identify why a dividend policy may not be set by any company, demonstrate a clear understanding and knowledge of both the reasons supporting and rejecting the setting of a dividend policy and how this can impact upon (affect) the medium to long term strategy. The email response should demonstrate evidence of some wider reading, knowledge and understanding of key academic theory, tools for financial analysis and the application of a dividend policy within a real-life business context, clearly identifying what are the common forms of dividend policy, if set. Real-life examples can be drawn from research data, the current financial analysis of respected analysts. It can also be drawn from differing countries, industries and individual businesses. The inclusion of relevant numerical examples to develop and enhance the response would be advantageous although should not form the main focus of the submission. (50%) Assignment Guidance: Students should approach this assignment as a formal report which provides a balanced argument throughout. Weighing the arguments for and against adopting a particular strategy (plan of action) or policy, making some comment on the literature both academic and empirical (drawn from current research, statistics and real world examples) and drawing logical conclusions. Academic referencing using the Harvard referencing approach is a key requirement of the assignment to demonstrate wider reading and relevant depth given to the discussion and /or proposals.