Appropriate financial theories into the capital structure (MM theories)
Aim
The aim of this assignment question is essentially one of investigation and analysis. The assignment question seeks to facilitate an application of contemporary financial management theory/issues within an empirical perspective.
Important information:
i) This assignment contributes 50% of the module assessment.
ii) This assignment will primarily address the following learning outcomes:
Describe and critically evaluate the overall relationship between the chosen topics of study(L02)
Critically assess the political nature and socio–economic influence of financial information(L05)
Explain and evaluate recent developments in understanding the pathology of corporate failure(L06)
Assessment of the different types of risk and the management of these including hedging and other exposure minimising techniques(L08)
iii) Word limit: maximum 2,500 words (excluding appendices and references).
Coursework topic: Capital Structure
Instructions;
1. Select a company listed on the Hong Kong Stock Exchange
2. You must use the most recent published reports and accounts. Good answers will probably make use of further accounts and stock market data.
Requirements / Questions
1. Describe the capital structure of the company and how this differs from financial structure. Explain whether capital structure has changed over time. [20 marks]
2. Making reference to appropriate financial theories explain whether you [40 marks]
3. Discuss the possible costs, risks and benefits of company changing its capital structure. [40 marks]
Note:
The marks awarded for the assignment are:
Assessment Criteria:
a: description of capital structure
b: critical evaluation/review
c: academic support given to evaluation/review
d: conclusion based on evaluation/review
e: presentation and structure
