Which action would be wiser: Dropping JC Penney completely from the P/E calculations, or instead entering a value of “0” for its EPS number?

February 14, 2020/in Finance /by Donald

International Research Journal of Applied Finance ISSN 2229 – 6891 Vol. VI Issue – 8 August, 2015 Case Study Series
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A Stock Valuation Case: An Application of the “Method of Comparables” for Macy’s Shares
Halil D. Kaya* Julia S. Kwok
Abstract The primary focus of this case is the application of the “Method of Comparables” in the estimation of the value of a security. An investment decision will be made based on the comparison of the selling price and the estimated value. A security will be good for purchase if the estimated value is higher than the market price. This method utilizes basic financial ratios that are commonly provided by financial web sites. First, using Yahoo Finance website, the pricing, sales, book value of equity and shares outstanding data are collected for both the target firm and the competitor firms. Then, the pricing multiples (i.e. price earnings ratio, price to sales ratio and price to book ratio) of the competitors are calculated. After that, those multiples along with the target firm’s earnings, sales, book value and shares outstanding data are used to estimate target firm’s share value. The case also examines the impact of treating “negatives” in the data. Students will learn that replacing negative earnings with zeros tend to induce less bias in target firm’s value estimation than excluding the “negative” data altogether.
Keywords: financial statement analysis, valuation, comparables, stock investments JEL classifications: G11, G12, A22
Introduction March 14, 2015 was a sunny day. Mary took advantage of the nice weather to have lunch at the Mall. On her way back to work, she walked by Susan’s investment office. Susan was Mary’s college roommate. They both liked shopping together to find new fashionable clothes. Looking at her watch, Mary realized she had half an hour to spend. She thought she would drop by and say hello to Susan.
The Performance of Macy’s “Hi, Susan, how are you?” How is your business?” said Mary. Susan was a recent finance graduate. Susan replied, “I am doing fine. Thank you. After so many years, the market is still recovering from the mortgage crisis; many investors have been buying back stocks that they have sold during the crisis. What are you up to?” “I want to start my investment in securities, too. I have a couple thousand dollars, would Macy’s be a good stock to invest in now? That was our favorite store to shop among all of the department stores,” Mary exclaimed. She added, “Also, I read from Motley’s Fool’s article on Macy’s today about its earnings per share growth for the last 16 quarters” (Zahid Waheed, 2014).
In response to Mary’s questions, Susan checked the monthly adjusted returns of Macy’s in Yahoo Finance. She found that, since March 2010, Macy’s stock price had an average annual increase of 23.5% over the last 5 years. The stock rose from $19.98 to $57.38. Susan then told Mary that Macy’s was indeed a growing stock. She added that its success could be attributed to the omni-channel integration, e-commerce and magic selling strategies which allowed merging of sales channels, online shopping and better customer care. Since investment strategy 101 is to
International Research Journal of Applied Finance ISSN 2229 – 6891 Vol. VI Issue – 8 August, 2015 Case Study Series
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buy low, and sell high, given Macy’s stock price had been going up, Susan was not sure whether Macy’s was currently overvalued or undervalued by the market.
The Method of Comparables Susan remembered her class lecture on the two types of valuation of stocks, namely absolute and relative evaluation. The absolute evaluation focuses on finding the intrinsic value of the security based on fundamentals. That involves more complicated models of discounting cash flows from dividends, operations and residual income.
On the other hand, relative evaluation is quick and easy to use. It assumes two similar securities should sell for one price in an efficient market, i.e. “Law of One Price.” So an analyst can estimate its stock price by multiplying target company’s specific earnings, sales and equity value data by the earning, sales and equity “per share” financial multiples of its competitors.
Since Mary was not familiarized with financial models, Susan decided to use the easy-to perform-and-analyze “Comparables Method” to estimate the relative value of Macy’s stock.
The Financial Data Dillards, JC Penney and Nordstrom were selected as competitors of Macy’s as they were all in retail department store business. Susan would need some financial data regarding these companies. She went to SEC’s (i.e. Securities and Exchange Commission) website and downloaded these companies’ most recent balance sheet and income statement data. Out of those statements, she knew that she would need the EPS (i.e. earnings per share), the sales number, the number of outstanding shares, and the book value of equity. She also knew that she would need the current share price for each company. After some work, she had found all the necessary information to run the analysis. Below were the data that she had gathered:
All data are in US$ except for the number of outstanding shares. The share price as of March 15, 2014 is shown in the first column. The “Earnings per share” is shown in the second column. The third column reports the book value of equity. The last column shows the number of outstanding shares. Firm P ($) EPS ($) Sales ($) BV of equity ($) # of shares Macy’s 58.58 3.93 27,931 mil. 6,249 mil. 378.3 mil. Dillard’s 90.61 7.10 6,532 mil. 1,992 mil. 45.6 mil. JC Penney 8.71 -5.57 11,859 mil. 3,087 mil. 249.3 mil. Nordstrom 61.33 3.77 12,166 mil. 2,080 mil. 194.5 mil.
The Decision Susan thinks that the following steps would be necessary to perform the analysis: 1. Based on the data above, calculate Sales per share, BV of equity/share values of all firms. Note that EPS is directly given. 2. Calculate P/E, P/Sales, and P/B for all of Macy’s competitors based on the data obtained. 3. Find the average of the P/E, P/Sales, and P/B multiples for the three competitors.
International Research Journal of Applied Finance ISSN 2229 – 6891 Vol. VI Issue – 8 August, 2015 Case Study Series
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4. Multiply those averages calculated in step 3 with Macy’s EPS, Sales per share, and BV of equity/share values, respectively to get three value estimates for Macy’s shares. 5. The average of the three estimates would then be Susan’s best estimate of Macy’s value per share. The investment decision would be based on the comparison of the selling price and the estimated value. Macy’s would be a good buy if the estimated value was higher than the market price.

Questions to Students;

1. Use all of the above data to estimate the value of Macy’s shares. One problem above is the negative EPS (i.e. loss) by JC Penney. What should you do if you have negative earnings for a comparable firm? If you do not include JC Penney in the P/E calculations (but use it in the other multiples), using the “Method of Comparables”, what would you find as the value of Macy’s shares? Would you invest in Macy’s shares?

2. If instead of completely dropping JC Penney from the P/E calculations and just use “0” for JC Penney’s EPS, using the “Method of Comparables”, what would you find as the value of Macy’s shares? Would you invest in Macy’s shares?

3. How different are your results in questions (1) and (2)? Why do you think your estimates for Macy’s shares are so different in these two alternative actions? Which action would be wiser: Dropping JC Penney completely from the P/E calculations, or instead entering a value of “0” for its EPS number?
References Joseph Nguyen. How to Choose the Best Stock Valuation Method? (2010). Retrieved August 1, 2014 from http://www.investopedia.com/articles/fundamental-analysis/11/choosingvaluation-methods.asp Historical prices from March 2010-March 2014. Yahoo! Finance (2014). Retrieved August 1, 2014 from http://finance.yahoo.com/q/hp?s=M&a=02&b=14&c=2010&d=02&e=14&f=2014&g=m Old Headlines. Yahoo! Finance (2014). Retrieved August 1, 2014 from http://finance.yahoo.com/q/h?s=M&t=2014-03-16 Company Filing. Security Exchange Commission. (2014). Retrieved August 1, 2014 from http://www.sec.gov/edgar/searchedgar/companysearch.html Zahid Waheed. Will Macy’s Keep Up the Good Work? (2014). Retrieved August 1, 2014 from http://www.fool.com/investing/general/2014/03/14/is-macys-on-the-right-track.aspx Authors
Halil D. Kaya* Associate Professor of Finance, Department of Accounting and Finance, College of Business and Technology, Northeastern State University, Broken Arrow, OK 74014; Email: kaya@nsuok.edu
Julia S. Kwok Associate Professor of Finance, Department of Accounting and Finance, College of Business and Technology, Northeastern State University, Broken Arrow, OK 74014

Evaluate a variety of management skills and select those appropriate to marketing payroll services.

February 11, 2020/in Finance /by Donald

Understanding customers and clients

Construct a marketing plan for the payroll function within your organization. The plan should consider aspects such as, benefits service expertise, communication method, human resource implications and service standards together with the personal skills necessary to implement such plan.

Learning outcomes:

Evaluate a variety of management skills and select those appropriate to
marketing payroll services.
Construct strategies that will help meet customer needs and aspirations more
effectively.
Propose appropriate marketing of payroll services.
Identify and manage the human resource considerations when marketing
payroll/pension services.

Workplace: A small team of payroll administrators in a busy payroll bureau in the UK. (Company name: DTE)

Structure of the assignment:
Service marketing

Setting marketing mix
Marketing communications
Marketing concepts
Augmented product

Understanding Customer needs

The payroll customer
Customer requirements
Service enhancements

Skills and considerations

Personal skill set
Influencing others
Mobilizing the payroll workforce
Management skills

References

Your assignment should be in the form of a written report and examples of any promotional/communication material should be in the appendices.

Explain to the BoD the benefits of the NPV vis-a-vis other capital budgeting methodologies.

February 9, 2020/in Finance /by Donald

Background: Case Study

Due to its strong financial performance, Hillside Industries – a public listed company – is considering the expansion of its operations by pursuing a plant extension. As a background, Hillside’s revenues have substantially increased based on demand growth for its products, currently at levels not seen since 2010. Working as the company’s Chief Financial Officer, you have been asked to assess the aforementioned plant extension plan and presenting (in a report) your recommendations to the Board of Directors (BoD).

The current figures at Hillside indicate that the company has sold 12,500 units in the last financial year, with projected sales of 15,000 units over the next five years (annually). Since relying on more efficient fully automated machines (the initial investment for which is discussed below), the new plant will have the capacity to produce 20,000 units/year. To cover the gap between forecasted sales and the capacity of the new plant, the marketing department has suggested to launch an aggressive campaign (amounting to a cash expense of $40,000/year) whereby the payment period to wholesale customers is extended from 15 to 30 days – this will presumably lead to the additional demand of 5,000 units/year required to cover the gap.

The projections above assume a sale price of $100 per unit, and that Hillside would be liable to pay its suppliers 12 days from the date of purchase of raw materials, with the cost of raw materials being $30/unit. Also relevant is the fact that it currently takes 15 days for the company to convert raw materials into finished goods, with production levels of 60 units/day.

The investment envisaged by the production manager of Hillside to carry on with the business expansion entails the installation of a newly developed, fully automated production technology in the new plant. The details associated with this investment are as follows:

Forcasted Future Free Cash Flows (Years)
Initial Investment 1 2 3 4 5
$270 000 $47 000 $61 000 $95 000 $97 000 $150 000

1. Based on the previous behaviour of the company’s stock, the beta of Hillside’s shares is Moreover, the current economic scenario is such that the risk-free interest rate is 1% per year, with financial analysts expecting a rate of return of 6% on the market portfolio (i.e., the relevant index representing the stock market). Hillside has also previously issue corporate debt that will mature in 15 years ($1,000 face value, 4% annual coupon rate) currently priced at $896. Finally, the company’s liabilities amount to 60% of its balance sheet and assume the tax-shield in Australia as 30%.

Key questions to be addressed
1. Based on the background provided in the case study, you are to write a report addressing the following key questions:
In terms of working capital requirements, what are the implications of increasing the payment period (or average collection period) from 15 to 30 days? Please refer to the operating and cash conversion cycles in your answer.
2. Based on the forecasted sales, is it possible for Hillside to achieve the corresponding cash and accounting break-even points? Based on your calculations for each – and from a pure cost management perspective – is the marketing department’s proposal acceptable? Explain.
3. Use the net present value (NPV) criteria to assess whether the expansion plan is warranted (Hint: use Hillside’s weighted average cost of capital as its discount rate and the CAPM to calculate the cost of equity). Explain to the BoD the benefits of the NPV vis-a-vis other capital budgeting methodologies.
4. Based on the cost of equity and the cost of debt, which of the two sources (bonds or shares) should the company use to raise the funds for the expansion plan? Explain the reasons behind your decision.
5. Based on the answers to the previous questions, determine whether to endorse the recommended plan to the Board.

What would happen if services were provided to patients but no payments were received for these services? What specific data would you review in the reimbursement area to know whether changes were necessary?

February 8, 2020/in Finance /by Donald

HCM 345 Final Project Guidelines and Rubric Overview The final project for this course is the creation of a white paper.
Much of what happens in healthcare is about understanding the expectations of the many departments and personnel within the organization. Reimbursement drives the financial operations of healthcare organizations; each department affects the reimbursement process regarding timelines and the amount of money put into and taken out of the system. However, if departments do not follow the guidelines put into place or do not capture the necessary information, it can be detrimental to the reimbursement system.
An important role for patient financial services (PFS) personnel is to monitor the reimbursement process, analyze the reimbursement process, and suggest changes to help maximize the reimbursement. One way to make this process more efficient is by ensuring that the various departments and personnel are exposed to the necessary knowledge.
For your final project, you will assume the role of a supervisor within a PFS department and develop a white paper in which the necessary healthcare reimbursement knowledge is outlined.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules One, Three, and Five.
In this assignment, you will demonstrate your mastery of the following course outcomes:
• HCM-345-01: Analyze the impacts of various healthcare departments and their interrelationships on the revenue cycle • HCM-345-02: Compare third-party payer policies through analysis of reimbursement guidelines for achieving timely and maximum reimbursements • HCM-345-03: Analyze organizational strategies for negotiating healthcare contracts with managed care organizations • HCM-345-04: Critique legal and ethical standards and policies in healthcare coding and billing for ensuring compliance with rules and regulations • HCM-345-05: Evaluate the use of reimbursement data for its purpose in case and utilization management and healthcare quality improvement as well as its impact on pay for performance incentives.

Prompt You are now a supervisor within the patient financial services (PFS) department of a healthcare system. It has been assigned to you to write a white paper to educate other department managers about reimbursement. This includes how each specific department impacts reimbursement for services, which in turn impacts the healthcare organization as a whole. The healthcare system may include hospitals, clinics, long-term care facilities, and more. For now, your boss has asked you to develop a draft of this paper for the hospital personnel only; in the future, there may be the potential to expand this for other facilities.
In order to complete the white paper, you will need to choose a hospital. You can choose one that you are familiar with or create an imaginary one. Hospitals vary in size, location, and focus. Becker’s Hospital Review has an excellent list of things to know about the hospital industry. Once you have determined the hospital, you will need to think about the way a patient visit works at the hospital you chose so you can review the processes and departments involved. There are several ways to accomplish this. Choose one of the following:
• If you have been a patient in a hospital or if you know someone who has, you can use that experience as the basis for your responses. • Conduct research through articles or get information from professional organizations.
Below is an example of how to begin framing your analysis.
A patient comes in through the emergency department. In this case, the patient would be triaged and seen in the emergency department. Think about what happens in an emergency area. The patient could be asked to change into a hospital gown (think about the costs of the gown and other supplies provided). If the patient is displaying signs of vomiting, plastic bags will be provided and possibly antinausea medication. Lab work and possibly x-rays would be done. The patient could be sent to surgery, sent home, or admitted as an inpatient. If he or she is admitted as an inpatient, meals will be provided and more tests will be ordered by the physician—again, more costs and charges for the patient bill. Throughout the course, you will be gathering additional information through your readings and supplemental materials to help you write your white paper.
When drafting this white paper, bear in mind that portions of your audience may have no healthcare reimbursement experience, while others may have been given only a brief overview of reimbursement. The goal of this guide is to provide your readers with a thorough understanding of the importance of their departments and thus their impact on reimbursement. Be respectful of individual positions and give equal consideration to patient care and the business aspects of healthcare. Consider written communication skills, visual aids, and the feasibility to translate this written guide into verbal training.
Specifically, the following critical elements must be addressed:
I. Reimbursement and the Revenue Cycle A. Describe what reimbursement means to this specific healthcare organization. What would happen if services were provided to patients but no payments were received for these services? What specific data would you review in the reimbursement area to know whether changes were necessary? B. Illustrate the revenue cycle using a flowchart tool. Take the patient through the cycle from the initial point of contact through the care and ending at the point where the payment is collected.
C. Prioritize the departments at this specific healthcare organization in order of their importance to the revenue cycle. Support your ordering of the departments with evidence.
II. Departmental Impact on Reimbursement A. Describe the impact of the departments at this healthcare organization that utilize reimbursement data. What type of audit would be necessary to determine whether the reimbursement impact is reached fully by these departments? How could the impact of these departments on pay-forperformance incentives be measured? B. Assess the activities within each department at this healthcare organization for how they may impact reimbursement. C. Identify the responsible department for ensuring compliance with billing and coding policies. How does this affect the department’s impact on reimbursement at this healthcare organization?
III. Billing and Reimbursement A. Analyze the collection of data by patient access personnel and its importance to the billing and collection process. Be sure to address the importance of exceptional customer service. B. Analyze how third-party policies would be used when developing billing guidelines for patient financial services (PFS) personnel and administration when determining the payer mix for maximum reimbursement. C. Organize the key areas of review in order of importance for timeliness and maximization of reimbursement from third-party payers. Explain your rationale on the order. D. Describe a way to structure your follow-up staff in terms of effectiveness. How can you ensure that this structure will be effective? E. Develop a plan for periodic review of procedures to ensure compliance. Include explicit steps for this plan and the feasibility of enacting this plan within this organization.
IV. Marketing and Reimbursement A. Analyze the strategies used to negotiate new managed care contracts. Support your analysis with research. B. Communicate the important role that each individual within this healthcare organization plays with regard to managed care contracts. Be sure to include the different individuals within the healthcare organization. C. Explain how new managed care contracts impact reimbursement for the healthcare organization. Support your explanation with concrete evidence or research. D. Discuss the resources needed to ensure billing and coding compliance with regulations and ethical standards. What would happen if these resources were not obtained? Describe the consequences of noncompliance with regulations and ethical standards.

Milestones
Milestone One: Draft of Reimbursement and the Revenue Cycle In Module One, you will submit a draft of Section I of the final project (Reimbursement and the Revenue Cycle). This milestone will be graded with the Milestone One Rubric. Milestone Two: Draft of Departmental Impact on Reimbursement In Module Three, you will submit a draft of Section II of the final project (Departmental Impact on Reimbursement). This milestone will be graded with the Milestone Two Rubric.
Milestone Three: Draft of Billing, Marketing, and Reimbursement In Module Five, you will submit a draft of Sections III and IV of the final project (Billing and Reimbursement, and Marketing and Reimbursement). This milestone will be graded with the Milestone Three Rubric.
Final Project Submission: White Paper In Module Seven, you will submit your entire white paper. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded using the Final Project Rubric. Deliverables
Milestone Deliverable Module Due Grading One Draft of Reimbursement and the Revenue Cycle One Graded separately; Milestone One Rubric Two Draft of Departmental Impact on Reimbursement Three Graded separately; Milestone Two Rubric Three Draft of Billing, Marketing, and Reimbursement Five Graded separately; Milestone Three Rubric Final Project Submission: White Paper Seven Graded separately; Final Project Rubric

Final Project Rubric Guidelines for Submission: This white paper should include a table of contents and sections that can be easily separated for each department area. It should be a minimum of eight pages (in addition to the title page and references). The document should use 12-point Times New Roman font, double spacing, and one-inch margins. Citations should be formatted according to APA style.
Critical Elements Exemplary Proficient Needs Improvement Not Evident Value Reimbursement and the Revenue Cycle: Reimbursement Meets “Proficient” criteria and includes any unique attributes of this specific organization (100%) Comprehensively describes what reimbursement means to this specific healthcare organization (85%) Describes what reimbursement means to a healthcare organization, but description is not comprehensive or is not specific (55%) Does not describe what reimbursement means to a specific healthcare organization (0%) 6.33 Reimbursement and the Revenue Cycle: Revenue Accurately illustrates the revenue cycle using a flowchart (100%) Illustrates the revenue cycle using a flowchart, but illustration is inaccurate or incomplete (55%) Does not illustrate the revenue cycle using a flowchart (0%) 6.33 Reimbursement and the Revenue Cycle: Prioritize Meets “Proficient” criteria, and prioritization demonstrates nuanced insight into departmental influence on the revenue cycle (100%) Prioritizes the departments at this specific healthcare organization in order of importance to the revenue cycle, supporting ordering of departments with evidence (85%) Prioritizes the departments at a healthcare organization in order of importance to the revenue cycle but is not specific to this healthcare organization or does not include support for ordering (55%) Does not prioritize the departments at a healthcare organization in order of importance to the revenue cycle (0%) 6.33 Departmental Impact on Reimbursement: Departments Meets “Proficient” criteria and communicates the impact in a style that adheres to authentic formatting for the business of healthcare (100%) Comprehensively describes the impact of the departments that utilize reimbursement data at this healthcare organization that also influence reimbursement (85%) Describes the impact of the departments that influence reimbursement, but description is not comprehensive or is not specific to this healthcare organization or to departments that utilize reimbursement data (55%) Does not describe the impact of the departments at a healthcare organization that influence reimbursement (0%) 6.33 Departmental Impact on Reimbursement: Activities Meets “Proficient” criteria, and assessment demonstrates keen insight into the relationship between departmental activities and healthcare reimbursement (100%) Assesses the activities within each department at this healthcare organization for how they may impact reimbursement (85%) Assesses the activities within each department at this healthcare organization but does not explicitly link these activities to reimbursement, or assessment is not specific (55%) Does not assess the activities within each department at a healthcare organization for how they may impact reimbursement (0%) 6.33

Departmental Impact on Reimbursement: Responsible Department
Correctly identifies the department responsible for ensuring compliance of billing and coding policies and its impact on reimbursement at this healthcare organization (100%)
Identifies the department responsible for ensuring compliance of billing and coding policies and its impact on reimbursement at this healthcare organization, but identification is incorrect (55%)
Does not identify the department responsible for ensuring compliance of billing and coding policies (0%)
6.33
Billing and Reimbursement: Data
Meets “Proficient” criteria, and analysis demonstrates a nuanced insight into the relationship between patient access personnel’s collection of data and the billing and collection process (100%)
Analyzes the collection of data by patient access personnel and its importance to the billing and collection process, including the importance of exceptional customer service (85%)
Analyzes the collection of data by patient access personnel and its importance to the billing and collection process but does not include the importance of exceptional customer service (55%)
Does not analyze the collection of data by patient access personnel (0%)
6.33
Billing and Reimbursement: ThirdParty Policies
Meets “Proficient” criteria, and analysis demonstrates a keen insight into the relationships between third-party policies, billing guidelines, and payer mix (100%)
Analyzes how third-party policies would be used when developing billing guidelines for PFS personnel and administration when determining the payer mix for maximum reimbursement (85%)
Analyzes how third-party policies would be used but does not apply analysis toward the development of billing guidelines for PFS personnel and administration or toward the determination of the payer mix for maximum reimbursement (55%)
Does not analyze how third-party policies would be used (0%)
6.33
Billing and Reimbursement: Key Areas of Review
Meets “Proficient” criteria, and explanation of key areas of review demonstrates a nuanced insight into reimbursement from thirdparty payers (100%)
Organizes and explains the key areas of review in order of importance for timeliness and maximization of reimbursement from third-party payers (85%)
Organizes and explains the key areas of review in order of importance for timeliness and maximization of reimbursement from third-party payers, but explanation is cursory or illogical (55%)
Does not organize and explain the key areas of review in order of importance for timeliness and maximization of reimbursement from third-party payers (0%)
6.33
Billing and Reimbursement: Structure
Meets “Proficient” criteria and demonstrates creativity in the structure identified (100%)
Describes a way to structure follow-up staff in terms of effectiveness and explains rationale for effectiveness (85%)
Describes a way to structure follow-up staff in terms of effectiveness but does not explain rationale for effectiveness (55%)
Does not describe a way to structure follow-up staff in terms of effectiveness (0%)
6.33
Billing and Reimbursement: Plan
Meets “Proficient” criteria and demonstrates ingenuity in the review process (100%)
Develops a plan for periodic review of procedures to ensure compliance, including explicit steps and the feasibility of enacting the plan (85%)
Develops a plan for periodic review of procedures to ensure compliance but does not include explicit steps or does not include the feasibility of enacting the plan (55%)
Does not develop a plan for periodic review of procedures to ensure compliance (0%)
6.33

Marketing and Reimbursement: Strategies
Meets “Proficient” criteria, and research includes specific examples applicable to negotiation strategies (100%)
Analyzes the strategies used to negotiate new managed care contracts, supporting analysis with research (85%)
Analyzes the strategies used to negotiate new managed care contracts but does not support analysis with research (55%)
Does not analyze the strategies used to negotiate new managed care contracts (0%)
6.33
Marketing and Reimbursement: Communicate
Meets “Proficient” criteria and communicates this in a manner that would be motivational for the individual (100%)
Communicates the important role that each individual within this healthcare organization plays with regard to managed care contracts, including the different types of individuals within the organization (85%)
Communicates the important role that each individual within this healthcare organization plays with regard to managed care contracts but does not include the different types of individuals within the organization (55%)
Does not communicate the important role that each individual within this healthcare organization plays with regard to managed care contracts (0%)
6.33
Marketing and Reimbursement: Contracts
Meets “Proficient” criteria and includes enough information to make informed decisions on accepting the contract (100%)
Explains how new managed care contracts impact reimbursement for the healthcare organization, including support for explanation with concrete evidence or research (85%)
Explains how new managed care contracts impact reimbursement for the healthcare organization but does not include support for explanation with concrete evidence or research (55%)
Does not explain how new managed care contracts impact reimbursement for the healthcare organization (0%)
6.33
Marketing and Reimbursement: Compliance
Meets “Proficient” criteria and includes details such as how often the resources should be updated to stay current with regulations (100%)
Comprehensively discusses the resources needed to ensure billing and coding compliance with regulations and ethical standards (85%)
Discusses the resources needed to ensure billing and coding compliance with regulations and ethical standards, but discussion is not comprehensive (55%)
Does not discuss the resources needed to ensure billing and coding compliance (0%)
6.33
Articulation of Response
Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format (100%)
Submission has no major errors related to citations, grammar, spelling, syntax, or organization (85%)
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas (55%)
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas (0%)
5.05
Earned Total 100%

Compare third-party payer policies through analysis of reimbursement guidelines for achieving timely and maximum reimbursements.

February 7, 2020/in Finance /by Donald

Explain why the existing initiative is not meeting its intended purpose and now requires improvement.

February 6, 2020/in Finance /by Donald

HCM 340 Milestone Two Guidelines and Rubric
Overview: In Module Four, you examined some of the recent initiatives aimed at improving the performance of the healthcare system. As you learned in your module readings, healthcare should be safe, effective, timely, efficient, equitable, and patient-centered. These six key dimensions form the basis for all quality and payment reform strategies implemented since the release of healthcare improvement plans. Prompt: In this milestone, you will identify and analyze an initiative that addresses the gap you chose as the topic for your final project. Explain what the initiative is, identify the goals of the initiative, describe the circumstances around its development, and identify sources of funding.
Tip: So far in the course, you have been introduced to the Kaiser Family Foundation and Institute for Healthcare Improvement (IHI) websites. These websites may also be helpful to you as you conduct your research on an existing initiative.
Your milestone should address each of the following points in detail:
• Explain an existing healthcare initiative that was put in place to address this gap in access. • Explain the specific goals of the existing initiative in place to address this gap in access. • Describe the circumstances around the development of the existing initiative. Consider when the initiative was developed and what factors were considered. • Describe the resources required to fund the existing initiative. • Explain why the existing initiative is not meeting its intended purpose and now requires improvement.
Rubric Guidelines for Submission: Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.
Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Existing Initiative: Address Gap Explains an existing healthcare initiative that was put in place to address this gap in access Explains an existing healthcare initiative that was put in place to address this gap in access, but explanation is cursory or contains inaccuracies Does not explain an existing healthcare initiative that was put in place to address this gap in access 18 Existing Initiative: Goals Explains the specific goals of the existing initiative in place to address this gap in access Explains the specific goals of the existing initiative in place to address this gap in access, but explanation is cursory or contains inaccuracies Does not explain the specific goals of the existing initiative in place to address this gap in access 18.

Existing Initiative: Development.
Describes the circumstances around the development of the existing initiative.
Describes the circumstances around the development of the existing initiative, but description is unclear or incomplete.
Does not describe the circumstances around the development of the existing initiative.
Existing Initiative: Resources Describes the resources required to fund the existing initiative.
Describes the resources required to fund the existing initiative, but description is illogical or contains inaccuracies.
Does not describe the resources required to fund the existing initiative.
Existing Initiative: Improvement.
Explains why the existing initiative is not meeting its intended purpose and now requires improvement.
Explains why the existing initiative is not meeting its intended purpose and now requires improvement, but explanation is cursory or contains inaccuracies.
Does not explain why the existing initiative is not meeting its intended purpose and now requires improvement.
Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization.
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas.
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas.

Explain the approach to budgeting and management accounting. How has financial practice within the organization developed over time?

February 5, 2020/in Finance /by Donald

Explain the approach to budgeting and management accounting. How has financial practice within the organization developed over time? How would you change the budgeting and management accounting processes to better manage the organizations overall financial position? Explain the financial tools and techniques adopted within your proposals and critically reflect on the use of them.

What are operating current liabilities? How much net operating working capital and total net operating capital does Computron have?

December 21, 2019/in Finance /by Donald

Chapter 2 Financial Statements, Cash Flow, and Taxes
a. What is Computron’s net operating profit after taxes (NOPAT)? What are operating current assets? What are operating current liabilities? How much net operating working capital and total net operating capital does Computron have?
b. What is Computron’s free cash flow (FCF)? What are Computron’s “net uses” of its FCF?
c. Calculate Computron’s return on invested capital (ROIC). Computron has a 10% cost of capital (WACC). What caused the decline in the ROIC? Was it due to operating profitability or capital utilization? Do you think Computron’s growth added value?
d. Cochran also has asked you to estimate Computron’s EVA. She estimates that the after-tax cost of capital was 10% in both years.
e. What happened to Computron’s Market Value Added (MVA)?
f. Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?
g. Assume that you are in the 25% marginal tax bracket and that you have $5,000 to invest. You have narrowed your investment choices down to California bonds with a yield of 7% or equally risky ExxonMobil bonds with a yield of 10%. Which one should you choose and why? At what marginal tax rate would you be indifferent to the choice between California and ExxonMobil bonds?

Did the student properly conclude the findings of the research? Did the student mention the research limitations and how they were addressed?

December 20, 2019/in Finance /by Donald

REQUIRED DISSERTATION CONTENT

The dissertation is about 13,000 words and must be submitted in an approved form on a topic related to the Master’s programme in Accounting and Finance. The front sheet, table of contents page, references list, cover page, ethics clearance form, and any appendices would not count in the word count of your dissertation.

Details about the content of a dissertation are available on NILE in the research methods training folder. See also below a brief description of the content of a dissertation.

The dissertation MUST include the following in the same Table of Contents Template:

Cover page (See the cover page template on NILE in the important forms folder)
Assignment submission sheet. The form is available on NILE in the important forms folder.
Research ethics clearance form (see the important forms folder on NILE)
Acknowledgement (i.e. It is your appreciation to all the people that helped you in your dissertation)
Abstract
Table of contents (It is a list of all the content of your dissertation and their page numbers. See the table of contents template on NILE in the important forms folder)
Introduction chapter(s) (see research methods training materials on NILE)
Literature review chapter (see research methods training materials on NILE)
Research methodology, design, and methods chapter (see research methods training materials on NILE)
Data analysis, discussion, and research findings chapter (see research methods training materials on NILE)
Conclusion and recommendation chapter (see research methods training materials on NILE)
References or bibliography (see research methods training materials on NILE and the academic integrity folder)
Appendices (This should be placed at the end of your dissertation. e.g. copy of the questionnaire, interview schedule, data set, SPSS or NVIVO output)

Additional information for structuring the Final dissertation and Proposal are available in Appendix 2 and 3.

REQUIRED DISSERTATION FORMAT

Students are required to submit a dissertation of 13,000 words in length (excluding appendices and footnotes). This is a strict word limit and not a recommended guideline. It counts for 60 credits out of students’ degrees and MUST count towards their degree classification.
Each chapter in your dissertation should start with an introduction and ends with a summary even the introductory chapters (see the research methods training folder on NILE to learn more about writing your dissertation).
All pages should be adequately and consecutively numbered.

DISSERTATION SUBMISSION

You MUST submit the following with your dissertation:

Proof of data collection technique used (e.g. copy of questionnaire or interview schedule) and the output of statistical analytical software utilised for the analysis (i.e. SPSS or NVivo output) must be supplied in the appendices section at the end of the dissertation.
All submissions should be through Turnitin on NILE.
Students could submit their propsal and final draft to check the simalirity up to submission date. However, they can not resubmit after the the due daet. For that please make sure you submit the last draft on the dye date.
Turnitin submission for different chapters will not be allowed on NILE (e.g literature review, metholdogy, data analysis and dicusssion). If you wish to get feedback on your dissertation chapters before final submission, please email the draft to your supervisor. The full draft of your disseration must be submitted to your supervisor no later than a month before the due date.
No late submissions will be allowed. See the deadline for submission in the important submission dates section of this guide. In the case of mitigating circumstances, please refer to the University policy on mitigating circumstances which is available on the module page on NILE and the University website.
The role of Turnitin is to help tutors detect plagiarism by showing the percentage of text matching. However, this is not an indication that a student committed plagiarism. Turnitin creates a report called “the originality report” showing this percentage of text matching in a student’s work. For more information about how to avoid plagiarism and the role of Turnitin, attend the research methods training and see the module page on NILE. Students are allowed to see the originality report only on the due date
Module Schedule

All sessions will run Online live podcast using Collaborate Ultra. All sessions will be recoded, and made available to students shortly after. All students will have access to all classes. A doodle will be send to students to choose a preferred time to organise class.

18^th October 2019	Welcome talk
25^th October 2019	Introduction to module and course timetable What is a Dissertation and producing a good dissertation Choosing Your Dissertation Topic Marking criteria SMART dissertation management: aims and objectives and research questions
1^st November 2019	Doing a critical literature review Working with the Literature
8^th November 2019	Philosophy of research Research design- Sampling Mixed methods
15^th November 2019	Qualitative research overview Research interviews Data analysis
22^nd November 2019	Quantitative Research overview: Questionnaire design – Use of Monkey survey Introduction to online resources for data collection
29^th November 2019	Testing the feasibility of your study; testing the availability of your data using DataStream and Orbis
6^th December 2019	Validity and reliability in research Research ethics Developing a research proposal Managing your supervisor and the learning agreement
March – April 2020	Data collection – DataStream and Orbis
March -April 2020	Data analysis and the use of SPSS Descriptive statistics
March – April 2020	Data analysis and the use of SPSS Advanced statistics

Important Submission deadlines

Please find below the submission deadline for your assessents

09 December 2019	Submit your research topic on NILE
16 December 2020	Expected date of appointment of supervisors
27 January 2020	Submit Research Proposal and ethics form – Annex 1 on Nile
21 August 2020	Suggested date to submit draft dissertation to supervisors for feedback
21 Sep 2020	Final Dissertation submission on NILE
30 Jan 2021 TBC	Dissertation resit submission on NILE

Role of dissertation students and supervisor

	Student	Supervisor
Arrange Scheduled Meetings	Agree a schedule of meetings, deadlines and adhere to them.
Prepare for scheduled meetings	Use supervisory time effectively by preparing tutorial in advance.	Read draft work and provide formative feedback, engage in other appropriate preparatory work. Drafts will be reviewed up to 14 days before due date.
Attend supervision meetings	Keep appointments which have been arranged	Provide guidance
Record Supervision meetings	Take notes of supervisory meetings	Record formal supervision meetings (ad hoc meetings in corridors do not count)
Manage any problems	For example: ensure work is authentic (academic integrity), that ethical issues are addressed	Contact students who (e.g.) Fail to attend arranged sessions (cause-for-concern) Referencing / plagiarism
Seek ethical approval where appropriate	Where work involves research with living subjects (human/animal), ensure that ethical approval is obtained prior to commencing the research	Ensure students have prompt access to suitable ethics procedures at faculty level, appropriate to the nature of the work being undertaken. Ensure that no work with living subjects commences prior to clearance being obtained.

TEACHING, LEARNING, & ASSESSMENT ACTIVITIES

Learning, Teaching and Assessment activities	Study hours
Contact hours: (total) Comprising face-to-face and online contact hours as follows:	16
Face-to-face (total) – this may include the following: – Individual Supervision	8
· Online contact hours (total) (comprising online activities with mediated tutor input)	8
Guided independent study hours (including hours for assessment preparation)	584
Module Total	600

ASSESSMENT STRUCTURE

Assessment Activity			Learning Outcomes	Weighting (%)
Code	Assessment Type	Assessment Deliverables
AS1	Research Proposal	2000 word proposal	a, b, c, e, f, g	15%
DI	Dissertation/ Report	13000 word final dissertation or project report	a, b, c, d, e, f, g	85%

USE OF NILE

NILE is the University electronic learning site. You are expected to check your NILE site regularly. Important announcements will be posted on NILE. All the teaching materials including teaching notes, seminars exercises, useful web links, past exams, and videos are available on NILE. You are also required to submit your assessments through Turnitin on NILE

FINM025 Rubic- Proposal

Criteria

No Submission / no evidence

Fail

Pass

Merit

Distinction

Introduction (20%) a) Identify a research topic, develop aims and objectives justified through reference to appropriate literature.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 9.9 points

There is some evidence of a systematic, coherent and analytical engagement with key aspects of the field of study including familiarity with the current literature developments. The topic is ill-defined, little or no rationale for selection of the problem. The introduction falls well short of the threshold standards. There is no clear justification of the research purpose. Aims and objectives are not defined and not justified.

10 to 11.9 points

The introduction is relevant and shows a greater degree of capability in relevant specialised skills. The topic is barely introduced; provides a rationale for selection but is not persuasive. Work of capable quality, which clearly demonstrates knowledge in and a critical awareness of current issues. The research questions, aims and objectives show a good understanding of the field of research.

12 to 13.9 points

The introduction is clear and demonstrates a greater degree of capability and meets research expectations. The topic is introduced; provides a brief rationale for selection of the problem that is persuasive; provides a statement of the problem, its meaning, importance and theories behind it. Includes a clear research question, aim and objectives. Statement of the research purpose and the overall reasons for the study are precise and related to the background of the problem.

14 to 20 points

Exceptional Standard. The introduction is clear, exemplary and provides evidence of a complete understanding of the project expectations. The topic is properly and concisely introduced; provides a brief and persuasive rationale for the selection of the problem. Includes a very clear research question, aim and objectives. Clear demonstration of the research purpose which is clearly linked to the background of the problem.

Literature Review (30%) b) Critically analyse a wide range of literature in accounting and finance.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 14.5 points

Work of poor quality that is based on minimal understanding, application or effort. Some evidence of a systematic, coherent and analytical engagement with aspects of the field of the research, including familiarity with the current literature. Poor volume of up-to-date literature that are from credible sources. Selects inappropriate theoretical framework.

15 to 17.9 points

A quality critical literature review demonstrating a limited understanding. A critical awareness of current issues, the theoretical knowledge at the forefront of the field of study. Insufficient application of up-to-date literature from academic sources. Literature used is related to the research questions and the research question.

18 to 20.9 points

A commendable quality critical literature review. Good use of up-to-date literature from both academic and credible sources. Literature used is related to the research questions and the research question is properly designed and clear. Identifies relevant theoretical framework(s).

21 to 30 points

Excellent and thorough summary of the literature review. Distinguished quality of critical literature review that is up-to-date literature from both academic and credible sources. Literature used is related to the research questions. Clearly identifies relevant theoretical framework(s); provides a rationale.

Research Methodology, Design, and Methods (30%) c) Synthesise and critique the different methodological frameworks that influence research to inform and justify a research methodology.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 14.5 points

Poor methodology. Fails to introduce the research methodology, research design and methods. Includes no researchable questions. Lacks connection between research questions, purpose and problem. No reference to the type of method used. Vaguely describes data analysis procedures.

15 to 17.9 points

A quality but brief research method section which introduces methodology, research design and methods briefly. Lists researchable question(s). Makes a connection between research methods and questions, purpose and problem. Includes a vague and non-persuasive justification for the type of research used. Describes a few of the procedures used to conduct the study for sample recruitment, informed consent, maintaining data.

18 to 20.9 points

A commendable preview of the methods used for this study which introduces research methodology, research design and methods briefly but clearly describes methods. Lists researchable question(s). Makes a clear and compelling connection between research methodology, methods, and research design to address the questions. Describes if research is qualitative or quantitative or mixed methods and provides adequate justification.

21 to 30 points

Exceptionally clear explanation and justification of research philosophy, approach and methods for data collection. Describes if research is qualitative or quantitative or mixed methods. Provides a clear justification for selection of type in relation to research problem and research questions. Includes a proper discussion of research design, the definition of population, sample size, determination and sample techniques used. Clearly describes the procedures used to conduct the study for sample recruitment, informed consent, maintaining data.

Significance of proposed research , Research limitations and direction for future research (10%) e) Develop independent working and project management skills.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 4.9 points

Poor communicated and evaluated preliminary statement of what they may find or demonstrate by having undertaken the research, the importance of this work, limitations and areas for further research development.

5 to 5.9 points

A quality critical preliminary statement of what they may find or demonstrate by having undertaken the research, the importance of this work, limitations and areas for further research development.

6 to 6.9 points

A commendable preliminary statement of what they may find or demonstrate by having undertaken the research, the importance of this work, limitations and areas for further research development.

7 to 10 points

Distinguished well communicated and evaluated preliminary statement of what they may find or demonstrate by having undertaken the research, the importance of this work, limitations and areas for further research development.

Professional / academic quality (10%) f) Initiate a reflective and independent approach to learning in managing an extended project. g) Communicate information and present complex arguments, clearly and accurately in a manner suited to an academic audience.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 4.9 points

Poor evidence is included or provided but missing in some very important aspects

5 to 5.9 points

A quality evidence which clearly demonstrates evidence of achieving the requirements of the learning outcomes

6 to 6.9 points

Commendable high quality, demonstrating evidence which is rigorous and convincing, appropriate to the task or activity

7 to 10 points

Distinguishing very high quality, demonstrating evidence which is strong, robust and consistent, appropriate to the task or activity

FINM025 Rubic- Final Dissertation

Criteria

No Submission / no evidence

Fail

Pass

Merit

Distinction

Introduction (10%) a) Identify a research topic, develop aims and objectives justified through reference to approriate literature.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 4.9 points

Poor introduction. There is some evidence of a systematic, coherent and analytical engagement with key aspects of the field of study including familiarity with the current topic developments. The topic is ill-defined, little or no rationale for selection of the problem. The introduction falls well short of the threshold standards. There is no clear justification of the research purpose. Aims and objectives are not defined and not justified.

5 to 5.9 points

A quality introduction which shows a greater degree of capability in relevant specialised skills. Topic is barely introduced; provides a rationale for selection but is not persuasive. Work of capable quality, which clearly demonstrates knowledge in and a critical awareness of current issues. The research questions, aims and objectives show a good understanding of the field. A description of the methodology used in the research. An outline of the structure of the dissertation is given.

6 to 6.9 points

A commendable introduction which demonstrates a greater degree of capability and meets research expectations. Topic is introduced; provides a brief rationale for selection of the problem that is persuasive; provides a statement of the problem, its meaning, importance and theories behind it. Clear research question, aim and objectives. Statement of the research purpose and the overall reasons for the study are precise and related to the background of the problem. A good description of the methodology used in the research. A clear outline of the structure of the dissertation is included.

7 to 10 points

Exceptional Standard. The introduction is clear, exemplary and provides evidence of a complete understanding of the project expectations. Topic is properly and concisely introduced; provides a brief and persuasive rationale for selection of the problem, its meaning, importance and theories behind it. Work of distinguished quality, which is evidenced by an authoritative, comprehensive, detailed review of the topic. Very clear research question, aim and objectives. Clear demonstration of the research purpose and is clearly linked to the background of the problem. A concise description of the methodology used in the research. Very clear of the dissertation structure is mentioned

Literature Review (25%) b) Critically analyse a wide range of literature in accounting and finance.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 9.9 points

Poor quality literate review chapter that is based on minimal understanding, application or effort. Some evidence of a systematic, coherent and analytical engagement with aspects of the field of the research, including familiarity with the current literature. Poor volume of up-to-date literature that are from credible sources. Selects inappropriate theoretical framework. Inaccurate definition and description of the theoretical framework with no connection to the problem. Does not examine any assumptions of theoretical. There is no rationale for hypotheses/ interview and/or survey.

10 to 14.9 points

A quality critical literature review chapter, however, the LR demonstrates a limited understanding. A critical awareness of current issues, the theoretical knowledge at the forefront of the field of study. Insufficient application of up-to-date literature from academic sources. Literature used is related to the research questions and the research question is clear. Identifies and analyses the theoretical framework(s) without a clear connection to the problem. The rationale for hypotheses/ interview and/or survey questions is very limited and unclear. Includes a brief summary of the literature.

15 to 17.4 points

A commendable quality critical literature review chapter which demonstrates a detailed and systematic knowledge and understanding in specialised areas, informed by a critical awareness of current issues and theoretical insights of the field of study. Good use of up-to-date literature from both academic and credible sources. Literature used is related to the research questions and the research question is properly designed and clear. Identifies relevant theoretical framework(s). Connects theoretical framework(s) to the problem and uses it to analyse the problem. The hypotheses/ interview and/or survey questions are generally addressed however the rationale for development is limited with very little reference to published work. Includes a complete summary of the literature, with tentative conclusions and a brief transition to methods chapter.

17.5 to 25 points

Distinguished quality of critical literature review chapter that is evidenced by an authoritative comprehensive, detailed, systematic knowledge and understanding of area of study. Work is characterised by strong technical expertise to high professional quality, ability to work with creativity and originality using accurate knowledge and insights at the forefront of the field of study. Sufficient and up-to-date literature from both academic and credible sources. Literature used is related to the research questions and the research question must be properly designed and clear. Clearly identifies relevant theoretical framework(s); provides a rationale. Insightfully connects theoretical framework(s) to the problem and uses framework(s) to analyse the problem. The rationale for hypotheses/ interview and/or survey questions are well supported with the literature. Excellent and thorough summary from literature review with robust transition to methods chapter.

Research Methodology, Design, and Methods (20%) c) Synthesise and critique the different methodological frameworks that influence research to inform and justify a research methodology.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 9.9 points

Poor quality research methods chapter. Fails to re-introduction to the purpose of the study including research problem and/or question; transition to methods not included. Fails to introduce the research methodology, research design and methods. Includes no researchable questions. Lacks connection between research questions, purpose and problem. No reference to the type of method used. Vaguely describes data analysis procedures. Does not tie procedures closely to research questions. No critique of the methodological literature.

10 to 11.9 points

A quality research methods chapter which Re-introduces purpose of the study including research problem and/or question; transition to methods vague, if included. Introduces methodology, research design and methods briefly. Lists researchable question(s). Makes a connection between research methods and questions, purpose and problem. Vague and non-persuasive justification for the type of research used. Describes a few of the procedures used to conduct the study for sample recruitment, informed consent, maintaining data. Describes only a few of the details of the protocols and steps taken during data collection. A few questions remain about the procedures and protocols. Discusses methodological literature with an incomplete connection to the chosen method.

12 to 13.9 points

A commendable research methods chapter which re-introduces the purpose of the study including research problem and question; transition to methods included. Introduces research methodology, research design and methods briefly but clearly describes methods. Lists researchable question(s). Makes a clear and compelling connection between research methodology, methods, and research design to address the questions. Describes if research is qualitative or quantitative or mixed methods and provides adequate justification. Describes most of the details of the protocols and steps taken during data collection. Discusses existing methodological literature, makes the connection to the chosen method.

14 to 20 points

Excellent methodology chapter which clearly and succinctly re-introduces purpose of the study including research problem and question; smooth transition to methods is included. Demonstrates advanced control, understanding, depth and insight in the application of relevant research methodology, techniques and design. Clear explanation of research aims and questions. Exceptionally clear explanation and justification of research philosophy, approach and methods for data collection. Describes if research is qualitative or quantitative or mixed methods. Provides a clear justification for selection of type in relation to research problem and research questions. A Proper discussion of research design, definition of population, sample size, determination and sample techniques used. Clearly describes the procedures used to conduct the study for sample recruitment, informed consent, maintaining data. Critiques methodological literature and justifies the selection of research methods.

Data Analysis, Results and Discussion (20%) d) Collect, analyse and interpret data in the context of existing literature.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 9.9 points

Poor quality analysis and discussion chapter which displays a low level of research methodology, interpretation, findings and layout that it can be regarded as unacceptable. No re-introduction to purpose of the study including research problem and/or question; transition to results not included. Inappropriate analysis of data not connected to research question and purpose. Inaccessible and confusing presentation of results; a very limited variety of charts, table or data displays included. Findings not interpreted correctly and are not supported by evidence nor linked to research questions. Does not identify the limitations of the study.

10 to 11.9 points

A quality analysis and discussion chapter which re-introduces purpose of the study including research problem and/or question; transition to results vague, if included. Satisfactory understanding of the significance of the research and a reasonably effective interpretation and application of the methodology. Shows limited awareness of the study’s applicability to the topic. Appropriate analysis of most of the data, vaguely connected to research question and purpose. Somewhat accessible and understandable presentation of results; limited variety of charts, table or data displays included. Findings interpreted and sometimes supported by evidence and vaguely linked to research questions. Shows a lack of awareness of at least one major area of limitation in the research methodology and/or findings. Does not recognise how the current study may be improved.

12 to 13.9 points

A commendable analysis and discussion chapter which re-introduces purpose of the study including research problem and question; transition to results included. Adequate knowledge and understanding of the significance of the research. Good organisation and application of research methodology. Demonstrates high levels of understanding and originality in the analysis (theoretical and/or empirical) of the research findings. Appropriate analysis of data, connected to the research question and purpose. Accessible and understandable presentation of results; a variety of charts, table or data displays included. Findings interpreted correctly and supported by evidence and address research questions. There is evidence of personal insights and experience into the field. The research findings make a significant contribution to the knowledge base of the discipline and field of study. Identifies limitations of the study.

14 to 20 points

Distinguished analyses and discussion chapter which clearly re-introduces the purpose of the study including research problem and question; smooth transition to results included. Demonstrates advanced control, understanding, depth and insight in the application of relevant research methodology, techniques and analysis. Includes a comprehensive discussion of the analysis of results from many different perspectives in a scholarly and objective manner. Appropriate and thoughtful analysis of data, clearly connected to the research question and purpose. Excellent and clearly understandable presentation of results; a variety of charts, table or data displays included. Findings interpreted correctly and directly supported by evidence and clearly address research questions. Conclusions follow from results, are accurately described in detail in terms of data analysis, and show methodological and conceptual rigour. Designs changes to study that would account for the above-mentioned limitations.

Conclusion and Recommendation (15%) e) Develop independent working and project management skills. f) Initiate a reflective and independent approach to learning in managing an extended project.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 7.4 points

Poor quality conclusion chapter of the study including research problem and/or question, however, the transition to the conclusion not included. fails to reach a logical/valid conclusion. The final summary fails to communicate the purpose and findings of the study, and the use of terminology is confusing. No mention of the research aims and objectives, limitations and how they were addressed. No evidence of recommendations for future studies. No attention paid to implications.

7.5 to 8.9 points

A quality conclusion chapter which includes research problem and/or question; transition to conclusion vague, if included. The conclusions are not in all respects logical and valid, and they are communicated with only partial success. The final summary does not communicate the purpose and findings of the study. Mention of the research aims and objectives, limitations. Recommendations for future studies are sometimes appropriate but not clearly linked to findings/outcomes.

9 to 10.4 points

A commendable conclusion chapter which includes the research problem and question; transition to conclusion included. The conclusions are logical and valid. The conclusions are communicated clearly and, where applicable, they are linked. The final summary communicates the purpose and findings of the study. Conclusions follow from the results and are explained in terms of the analysis of the data. Mention of the research aims and objectives, limitations and how they were addressed. Recommendations for future studies are appropriate and linked to findings/outcomes. Implications for policy/practice is included.

10.5 to 15 points

Distinguished conclusion chapter which includes the purpose of the study including research problem and question; smooth transition to conclusion included. The conclusions are logical and valid and show a strong awareness of the authoritative published literature. The conclusions are clearly communicated and evaluated and, where applicable. The final summary is relevant and communicates the purpose and findings of the study in clearly understandable terms. Mention of the research aims and objectives, limitations and how they were addressed. Recommendations for future studies are insightful, appropriate and linked to findings/outcomes. Implications for policy/practice included. Implications linked to the data.

Professional / academic quality (10%) g) Communicate information and present complex arguments, clearly and accurately in a manner suited to an academic audience.

0 to 0 points

Work submitted is of no academic value/nothing submitted

1 to 4.9 points

Poor quality evidence included or provided but missing in some very important aspects.

5 to 5.9 points

Quality work which clearly demonstrates evidence of achieving the requirements of the learning outcomes.

6 to 6.9 points

Work of high quality, demonstrating evidence which is rigorous and convincing, appropriate to the task or activity.

7 to 10 points

Work of excellent quality, demonstrating evidence which is strong, robust and consistent, appropriate to the task or activity

Masters dissertation Topic submission form [Select Date]

(Appendix 1)

Student Name		Student No
Student Email
Have you discussed your topic with a tutor? (Yes No)
Was your topic approved? (Yes/ No)
What is your estimated deadline for submitting your draft

Dissertation Topic

Indicate the proposed title of your study (Maximum 30-words)

This activity has the following subtasks:

2. Why is this topic relevant, important or interesting?

Use citations and references to support your answer

2. How your topic relates to past research in this field?

Indicate the link to previous research with reference to published work.

3. What are the main concepts and theories that could be relevant to your topic?

Indicate the concepts and theories that are relevant to your topic

4. What could be the appropriate methodology for your topic?

Indicate which method will be used quantitative/ qualitative- secondary /primary data and how you intend to collect data and why? Do you intend to use statics model for data analyses? Are you familiar with your proposed chosen method for data collection and analyses? If not how are you planning to overcome these challenges?

5. Will your topic require ethical approval?

Explain if your research will require ethical approval? and how you intend to approach the participants?

6. Lists at least 7 key references that are related to your work?

Include an indicative list of 7 key references that are directly line.

Initial Topic Approval

Consult a tutor that you think is expert in your topic and ask them for their initial approval of the topic.

Tutor Name:

Initial Feedback:

Date:

Post Graduate Dissertations FINM025

Writing guidelines (Appendix 2)

Dissertation	Criteria
Proposal (Appendix 2)	Does the proposal include a clear introduction to the dissertation topic, including: – A research problem (i.e. gaps in the literature)? – Aims and objective/ hypotheses? – A mini literature review of the of the topic including a review of theories and findings? – The methods that will be used for data collection, and how data will be analysed? – The outcome of the research and limitation?
Chapter One: Introduction	Did the student clearly introduce the topic? Did the student clearly demonstrate the aims and importance and contribution of the study? Did the student briefly describe the methodology used in his/her research? Did the student mention how the thesis will be structured?
Chapter Two: Literature Review	Did the student include an overview of the research topic? Did the student properly introduce the topic, its meaning, importance, & theories behind it
	Did the student critically review the literature? Did the student use sufficient and up-to-date literature? Did the student use academic and credible sources? Did the literature used is related to the research questions? Are the research questions / Hypothesis/ and or interview question clear and appropriately designed ? Are the Hypotheis / Interview questions/ or survery questions aligned with the Literature?
Chapter Three: Research Methodology, Design, and Methods	Did the student clearly explain the research aims and questions? Did the student clearly explained and justified their research philosophy, approach and methods for data collection? Did the student properly explain how the research was designed? Did the student define the study population and sample, mention how sample size was determined and what was the sampling technique used? Are the research methods used for data collection valid and relevant to the research aims/questions? Did the student properly describe the methods used for data collection and analysis? Did the student demonstrate an awareness of the different ethical issues in their research and how it was addressed?
Chapter Four: Data Analysis, Results, and Discussion	Did the student properly analyse, and present the data? Did the student properly discuss and explain the research results? Did the student properly discuss the research findings in accordance to the Literature findings?
Chapter Five: Conclusion and Recommendation	Did the student mention the research aims and importance? Did the student properly conclude the findings of the research? Did the student mention the research limitations and how they were addressed? Did the student make any recommendations?
References/ Bibliography	Please keep in mind that academic integrity cannot be compromised. If a student committed plagiarism, his/her work will be submitted to the misconduct committee for a decision. Penalties range from a reduction of the grade to dismissal from the programme of study depending on the degree of the offence. Did the student use credible sources? Did the students use sufficient and up-to-date sources? Did the student follow every aspect of the Harvard referencing guide?

Appendix 3- FINM025

Accounting and Finance Proposal Writing guidelines

Proposal

Criteria

Introduction and background (Terms of Reference)

– Did the student provide the underlying rationale for this research? And research gap?

– Was the student able to identify how this study will contribute to the literature/ practice? And, what is the research dissertation to achieve?

– Did the student outline the research question? Alternatively, proposition(s) or hypothesis?

– Did student clearly indicate the aim and objectives of this research? (Objectives should commence with a verb – to ascertain, to establish, to recommend, etc.)

Research Rationale (Statement of Problem)

The purpose of the Research (What is the study trying to achieve?)

Research question (or propositions or hypotheses)

Critical Literature Review

(Indication of the literature that informs your research)

Theoretical frameworks (Role of theory)

–

– #

–

Did the student provide a preliminary, critical evaluation of seminal and previous research? Addressing What are the key studies in your topic area and how these are related to the issues you intend to look at in your research?

–

– Did the student identify the working concepts/models and theoretical frameworks that are used to guide the research? The student should address

What is the role of the theory in research? Moreover, what ways the theories will be used?

Note: This section provides an introduction to the literature search chapter of the dissertation.

3. Methodology and methods

– Did the student provide and outline how they plan to go about doing the research?

Research Design (description of proposed research – type of study)

Methods for data collection

– Did the student include a justification of the methodological approach they intend to employ? and the implications of this methodology?

– Did the student include a clear and precise explanation of how the data for the study will be collected, what methods will be utilised? Support the terms and techniques identified with academic references and explanations.

-This section should make reference to sampling methods and limitations of the study. Refer to the range and types of data that are available when conducting academic research.

Research Context (e.g. industry sector, organisation)

–

– Did the student provide the context of thier proposed research? Key features, characteristics! Who will be studied? How many? How will they be selected (i.e. sampling)?

Procedure (i.e. what happened from the participants’ perspective)

Methods for data analysis Ethical considerations

– Was the student able to anticipate any problem they might have in implementing the methods. E.g How will they will access people? How they collect questionnaire data?

– Was the student able to ensure that their research meets the ethical standards of the University? (See the ethics form on NILE site). Did the student address how they will protect confidentiality?

4. Discussion Significance of proposed research (Research Contribution)

Research limitations and direction for future research

Did the student provide a preliminary statement of what they may find or demonstrate by having undertaken the research? Moreover, what is the importance of this work?

Was the student able to envisage the study limitations and identify areas for further research development?

Note: All research has limitations, and you will certainly be limited by the time available to do this work. The scope of a dissertation is limited, and there may be an area that would benefit from further research, for example, a different region or business sector might provide different outcomes to strengthen or generate additional insights into your selected area.

5. Provisional work schedule

– Did the student include a timetable for completing the research indicating the tasks necessary to complete each segment? Don’t forget to include slippage time.

6. References

– Did the student provide a correct referencing with a comprehensive citation and reference list?

Explain how a Private Equity (PE) firm such as 3M could align their interests to the managers of Bottomline Technologies.

December 16, 2019/in Finance /by Donald

BPP Coursework Cover Sheet
Please use the table below as your cover sheet for the 1st page of the submission. The sheet should
be before the cover/title page of your submission.
Programme MSc Management
Module name Financing Business Initiatives
Schedule Term
Student Reference Number (SRN)
Report/Assignment Title
Date of Submission
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extension received)
Declaration of Original Work:
I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is my
original work, researched, undertaken, completed and submitted in accordance with the requirements
of BPP School of Business and Technology.
The word count, excluding contents table, bibliography and appendices, is ___ words.
Student Reference Number: Date:
By submitting this coursework you agree to all rules and regulations of BPP regarding assessments
and awards for programmes. Please note, submission is your declaration you are fit to sit.
BPP University reserves the right to use all submitted work for educational purposes and may
request that work be published for a wider audience.
BPP School of Business and Technology
Msc Management with Finance
Financing Business Initiatives
Coursework Assessment Brief
Autumn Term 2019
Submission mode: Turnitin online access
1. General Assessment Guidance
 Your summative assessment for this module is made up of this Coursework submission which
accounts for 100% of the marks

You are required to submit all elements of your assessment via Turnitin online access. Only
submissions made via the specified mode will be accepted and hard copies or any other digital
form of submissions (like via email or pen drive etc.) will not be accepted.
For coursework, the submission word limit is 3500 words. You must comply with the word count
guidelines. You may submit LESS than 3500 (plus 500 words for the reflective statement) words
but not more. Word Count guidelines can be found on your programme home page and the
coursework submission page.
Do not put your name or contact details anywhere on your submission. You should only put
your student registration number (SRN) which will ensure your submission is recognised in the
marking process.
A total of 100 marks are available for this module assessment, and you are required to achieve
minimum 50% to pass this module.
You are required to use only Harvard Referencing System in your submission. Any content which
is already published by other author(s) and is not referenced will be considered as a case of
plagiarism. You can find further information on Harvard Referencing in the online library on the
VLE. You can use the following link to access this information:
http://bpp.libguides.com/Home/StudySupport
BPP University has a strict policy regarding authenticity of assessments. In proven instances of
plagiarism or collusion, severe punishment will be imposed on offenders. You are advised to
read the rules and regulations regarding plagiarism and collusion in the GARs and MOPP which
are available on VLE in the Academic registry section.
You should include a completed copy of the Assignment Cover sheet. Any submission without
this completed Assignment Cover sheet may be considered invalid and not marked.
2. Assessment Brief
Your summative assessment for MSc Management with Finance, Financing Business Initiatives
has TWO elements and they MUST be submitted on the same document:
1. a Consultancy Report submission for 80% of your marks (excluding the title,
references and quotations).
2. a Reflective Statement on the top challenges facing the financing of new business
initiatives in a market of your choice for 20% of your marks (excluding the title, references
and quotations).
Any calculations in excel should be pasted into the document showing the Formulae AND the
values.
For coursework, please use font size 12 for body text and the typeface (font) should be Arial or
Times New Roman with minimum 1.5 spacing.
For headers and titles, please use font size 14. Your submission must have standard margins and
page numbers.
Please use English (UK) as your language in the submission.
You should include a completed copy of the Assignment Cover sheet. Any submission without
this completed Assignment Cover sheet will be considered invalid and not marked.
Student Guidance
In your answers, in addition to the information provided, please apply the concepts from the
appropriate areas of financial and economic theory discussed during this and all previous modules
during your course. Your answers should include appropriate numerical data and, if appropriate,
charts/graphs. You may use any appropriate data from the case study.
Consultancy Report (80% of module marks)
You are a recently hired Financial Analyst working on the Leveraged Buyout (LBO) deal desk
for 3M, a small Private Equity (PE) firm with a strategic investment remit for high growth
technology companies. Your first task is to review the case company Bottomline
Technologies as a potential investment and prepare a report addressing the following
requirements:
1. Using Exhibit 1 and other industry data, carry out a Porter’s Five Forces analysis on
the Cloud Computing Industry. (15 marks)
2. Identify and critically evaluate the characteristics of a company which would be
suitable for an LBO. (6 marks)
3. Explain how a Private Equity (PE) firm such as 3M could align their interests to the
managers of Bottomline Technologies. (6 marks)
4. Discuss the typical LBO sources of finance and a typical debt financing term structure.
(10 marks)
5. Based on the financial information and assumptions in Exhibit 2, undertake a DCF
valuation for Bottomline Technologies identifying the intrinsic equity value of a share.
Outline the assumptions used and explain your calculations and workings. (15
marks)
6. Based on the financial information and assumptions in Exhibit 3, undertake a LBO
valuation for Bottomline Technologies, identifying the IRR that will be generated on
equity assuming an exit in year 5. Outline the assumptions used in your calculations
and explain your workings. (10 marks)
7. Evaluate possible exit strategies for 3M if it was decided that the investment in
Bottomline technologies should go ahead. (8 marks)
8. For potential investors into the 3M fund explain private equity fund structures, fund
terms, economic terms and corporate governance terms used by typical PE firms. (10
marks)
Reflective Statement (20% of module marks)
Include a 500-word reflective statement on the top challenges facing the financing of
new business initiatives in a market of your choice for 20% of your marks. (20 marks)
3. Marking Guide
The assignment is marked out of 100.
Marks have been allocated against each question, and indications given in the model answers.
Assignment Part Mark Approach
Question 1
Using Exhibit 1 and other industry data, carry out a
Porter’s five forces analysis on the Cloud Computing
Industry.
15 marks
Using information provided on the
case company and other research
data undertake a Porter’s 5 forces
analysis on the Cloud Computing
Industry with specific reference to
Bottomline Technologies. Marks will
be equally allocated to each force.
Question 2
Identify and critically evaluate the characteristics of a
good LBO candidate company.
6 marks
Identify the characteristics of a good
LBO candidate. Your identification
should include both qualitative and
quantitative aspects.
Question 3
Explain how a Private Equity (PE) firm such as 3M will
align their interest to the managers of Bottomline
Technologies.
6 marks
You will be expected to identify how
directors of private equity firms
provide incentives to target company
managers.
Question 4
Discuss the typical LBO sources of finance and a
typical debt financing term structure.
10 marks
You will be expected to identify and
discuss the sources of finance used
on LBO deals with details expected
on the various types of Debt
structures typically used.
Question 5
Based on the financial information and assumptions in
Exhibit 2. Undertake a DCF valuation for Bottomline
Technologies identifying the intrinsic equity value of a
share. Outline the assumptions used and explain your
calculations and workings.
15 marks
You will be expected to use excel to
undertake the DCF analysis utilising
the assumptions provided in Exhibit
2. You must state all relevant
assumptions and show all your
workings.
Question 6
Based on the financial information and assumptions in
Exhibit 3. Undertake a LBO valuation for Bottomline
Technologies identifying the IRR that will be generated
on equity assuming an exit in year 5. Outline the
assumptions used in your calculations and explain
your workings
10 marks
You will be expected to undertake a
LBO analysis calculating the IRR
based on the assumptions in Exhibit
3 and conclude whether the
acquisition will meet the expectations
of 3M’s directors.
Question 7
Evaluate possible exit strategies for 3M if it was decided
that the investment in Bottomline technologies should
go ahead.
8 marks You will be expected to identify and
discuss exit strategies that can be
applied in a LBO scenario and
suggest which would be the most
suitable exit strategy for 3M.
Question 8
For potential investors into the 3M fund explain private
equity fund structures, fund terms, economic terms and
corporate governance terms used by typical PE firms.
10 marks
With reference to investors in PE
funds you will be expected to
provided information on:
– Fund structures
– Fund Terms used in practice
– Economic Terms
– Corporate Governance Terms
An identification and explanation of
each used is expected.
Include a 500-word reflective statement on the funding
options available for technology start-ups in today’s
business environment.
20 marks
Your reflective statement should
include any relevant practical
examples and conclude what’s the
likely impact on funding and the
industry in the coming years.
Total 100 marks
Generic Level 7 Grading Criteria
Criteria Pass Grades Fail Grades
High
Distinction
85-100%
Distinction
70-84%
Merit
60-69%
Pass
50-59%
Fail
30-49%
Low Fail
0-29%
The work
displays:
The work
displays:
The work
displays:
The work
displays:
The work
displays:
The work
displays:
Knowledge &
Understanding
(a) Systematic
Understanding
(b) Emerging
Thought
(a) Strong
evidence of a
comprehensiv
e and
systematic
understanding
of an
extensive
range of
appropriate
issues,
concepts,
theories and
research
(a) Clear
evidence of a
comprehensiv
e and
systematic
understanding
of a
considerable
variety of
issues,
concepts,
theories and
research
(a) Clear
evidence of a
comprehensiv
e and
systematic
understanding
of all major –
and some
minor – issues,
concepts,
theories and
research
(a) Evidence
of a systematic
understanding,
which may
contain some
gaps, of all
major – and
some minor –
issues,
concepts,
theories and
research
(a) Evidence
of an
understanding
of an
appropriate
range of
issues,
concepts,
theories and
research but
has significant
gaps or
misunderstand
ings.
(a) Evidence
of a limited
understanding
of issues,
concepts,
theories and
research either
major and/or
minor.
(b) Sustained
excellence in
the application
of thoughts
and practices
at the forefront
of the
discipline
(b) Precise
and welljudged
application of
thoughts and
practices at
the forefront of
the discipline
(b) Some clear
evidence of
the application
of thoughts
and practices
at the forefront
of the
discipline
(b) Clear
evidence of an
understanding
of thoughts
and practices
at the forefront
of the
discipline.
(b) Unclear or
imprecise
understanding
of thoughts
and practices
at the forefront
of the
discipline.
(b) Significant
gaps in the
understanding
of the debates
at the forefront
of the
discipline.
Argument
(a) Analysis,
Synthesis &
Evaluation
(b) Numerical
Analysis
(c)
Argumentation
(d)
Independent
Research
(a)
Consistently
precise,
accurate and
reasoned
analysis,
synthesis
and/or
evaluation;
addressing
issues with
insight or
originality
(a)
Consistently
precise,
accurate and
reasoned
analysis,
synthesis
and/or
evaluation
addressing all
issues, some
with creativity
(a) Precision,
accuracy and
clear
reasoning
throughout the
analysis,
synthesis
and/or
evaluation
addressing all
issues
appropriately
(a) Broad
levels of
precision,
accuracy and
reasoning in
analysis,
synthesis
and/or
evaluation,
and addresses
all key issues
(a) Errors
which affect
the
consistency of
the analysis,
synthesis or
evaluation
and/or key
gaps in the
issues
addressed
(a) A lack of
precision,
accuracy or
reasoning in
analysis,
synthesis or
evaluation with
significant
gaps in the
issues
addressed
(b) Numeric
analysis that is
complete and
free from
errors with
application of
methods that
may be
insightful or
original
(b) Numeric
analysis that is
complete and
mostly free
from errors
with fluent and
appropriate
application of
methods.
(b) Numeric
analysis that is
complete and
mostly free
from errors
with relevant
and effective
application of
methods.
(b) Numeric
analysis that is
mostly
complete and
free from
significant or
critical errors
with
appropriate
application of
methods.
(b) Numeric
analysis that is
mostly
complete but
contains errors
with significant
effect, or
methods that
are applied
inappropriately
(b) Numeric
analysis that is
incomplete or
contains errors
which have
critical effect,
or methods
that are
applied
inappropriately
(c) Extremely
strong and
consistent
argument
making a
convincing
whole with
evidence of
originality.
Impressive
dexterity in the
use of
information
gathered to
support the
argument.
(c) Extremely
strong and
consistent
argument that
convincingly
addresses
issues including
uncertainties and
conflicts.
Excellent use of
information
gathered which
to support and
further the
argument
(c) Evidence of
an argument
that is
generally
convincing
with a good
internal
consistency
and addresses
most issues.
Very good use
of information
gathered to
support the
argument.
(c) Evidence of
an overall
convincing
argument but
may have
weaknesses,
gaps or
inconsistencies.
Clear use of
information
gathered but
may have some
weaknesses in
the integration
into the
argument.
(c) Evidence of
a consistent
argument but
may have
weaknesses,
significant
gaps or be
unconvincing.
Clear use of
information
gathered but
may not be
sufficient to
sustain the
argument.
(c) Lack of
consistency or
structure in the
argument.
Serious
weaknesses in
the integration
of evidence
and/or no
awareness of
the limitations
or weaknesses
of the
research.
Argument
(continued)
(d)
Independent
Research
(d) Evidence
of an
innovative or
original use of
extensive
personal
research
which has
been
thoroughly
critically
evaluated both
conceptually
and
methodologica
lly
(d) Substantial
research and
evidence of an
innovative use
of a wide
range of
personal
research with
clear and
consistent
critical
evaluation
both
conceptually
and
methodologica
lly
(d) Clear
evidence of
considerable
personal
research and
the use of a
diverse range
of appropriate
sources but
may contain
problems with
consistency in
the conceptual
and
methodologica
l critical
evaluation
(d) Appropriate
use of a wide
range of
personal
research
which is
critically
evaluated for
key conceptual
and
methodologica
l issues
although this
may not be
consistent
throughout
(d) Evidence
of a range of
personal
research but
evidence of
methodologica
l or conceptual
evaluation
may be
limited,
inconsistent or
inappropriate
(d) Over
reliance on
very restricted
range of
personal or
secondary
research much
of which may
not be
evaluated and
may not be
directly related
to the question
or area
Presentation
(a) Structure
(b)
Referencing
(c) Use of
Language
(a) Excellent
structure and
presentation
(a) Excellent
structure and
presentation
(a) Good
structure and
presentation
(a) Adequate
structure and
presentation
(a) Adequate
structure and
presentation
(a) Poor
structure and
presentation
(b) Precise, full
and
appropriate
references and
notes.
(b) Precise, full
and
appropriate
references and
notes.
(b) Full and
appropriate
references and
notes with
minor or
insignificant
errors
(b) Good
references and
notes with
minor or
insignificant
errors or
omissions
(b) Competent
references and
notes but may
contain
inconsistencie
s, errors or
omissions
(b) Poor
references and
notes with
multiple
inconsistencie
s, errors or
omissions
(c) Subtle use
of language
expressing
highly
nuanced
thought with
clarity and
precision to a
level
appropriate for
submission for
publication.
(c) Precise use
of language
expressing
complex
thought with
clarity,
accuracy and
precision
which furthers
and enhances
the argument
(c) Clear and
precise use of
language
allowing a
complex
argument to
be easily
understood
and followed
(c) Generally
clear use of
language
sufficient for
arguments to
be readily
understood
and followed
(c) Generally
understandabl
e use of
language but
significant
errors in
expression
affecting
overall clarity
(c) Serious
errors in the
use of
language
which makes
meaning
unclear or
imprecise
–
Exhibit 1
Bottomline’s Technologies Case Study – Company Information
Our Company
We power mission-critical business transactions. We help our customers optimize financially oriented
operations and build deeper customer and partner relationships by providing a trusted and easy-touse
set of cloud-based digital banking, fraud prevention, payment, financial document, insurance and
healthcare solutions. We offer hosted or Software as a Service (SaaS) solutions, as well as software
designed to run on-site at the customer’s location. The majority of our revenues are derived from
offerings sold as SaaS-based solutions and paid for on a subscription and transaction basis.
We operate a cloud-based network that facilitates the exchange of electronic payments and invoices
between buyers and their suppliers. We offer hosted and on-premises solutions that banks use to
provide cash management and treasury capabilities to their business customers, as well as solutions
that banks and credit unions use to facilitate customer acquisition and growth. We offer financial
messaging solutions for banks and corporations around the world, via solutions that leverage the
SWIFT global messaging network. We offer legal spend management solutions that help manage legal
and claims vendor expenditures and that automate receipt and review of legal invoices for insurance
companies and other large corporate consumers of outside legal services. Our corporate customers
rely on our solutions to automate their payment and accounts payable processes and streamline and
manage the production and retention of electronic documents and our healthcare customers use our
solutions to streamline financial processes, particularly the patient enrolment process. Our document
automation solutions are used by organizations to automate paper-intensive processes for the
generation of transactional and supply chain documents. We also offer comprehensive cyber fraud
and risk management solutions that are designed to non-invasively monitor and analyse user
behaviour to flag behavioural and data anomalies and other suspicious activity.
Our solutions are designed to complement, leverage and extend our customers’ existing information
systems, accounting applications and banking relationships so that they can be deployed quickly and
efficiently. To help our customers receive the maximum value from our products and meet their
specific business requirements, we also provide professional services for installation, training,
consulting and product enhancement.
Our Products and Services
Payment Network
Paymode-X is a leading business-to-business electronic payment network. This hosted solution helps
organizations transition from paper to electronic transactions in order to streamline processes, reduce
costs and optimize working capital. With more than 300,000 enrolled vendors, new Paymode-X
customers gain immediate benefits because many of their vendors are already part of the Paymode-
X network. Our solution offers a lower cost settlement option than do traditional credit or debit card
payment methods. We continually invest in furthering the value and ease of use of Paymode-X, which
includes electronic payments and remittance delivery, online access to payment detail and reports,
online payment approvals and turnkey vendor enrolment and support.
Digital Banking
We offer payments, cash management and online banking solutions to financial institutions, including
banks and credit unions. Our solutions enable banks of all sizes to offer their customers a host of
capabilities including ACH and BACS payments, wires, international payments, check production,
customer acquisition, balance and information reporting and other features that facilitate enterprisewide
cash management and interaction with their customers. Our solutions allow our bank customers
to attract and service a full range of client segments from small businesses to multi-nationals. These
solutions feature an intuitive user interface designed to simplify all aspects of cash management for
customers of all sizes and sophistication, through both browser-based and mobile channels.
Legal Spend Management
Our hosted legal spend management solutions and services integrate with claims management and
time and billing systems to automate legal invoice management processes and to provide insight into
all areas of a company’s outside legal spend. The combination of automated invoice routing and a
sophisticated rules engine allows corporate legal and insurance claims departments to create more
efficient processes for managing invoices generated by outside law firms and other service providers,
while offering insight into important legal spend factors including expense monitoring and outside
counsel performance. We are continuing to expand the capabilities of these offerings to facilitate the
selection and retention of counsel, and the management and budgeting of litigation matters.
Cyber Fraud and Risk Management
Our cyber fraud and risk management solutions non-invasively monitor, replay and analyse user
behaviour to flag and can stop suspicious activity in real time. The solutions are highly configurable
and create accountability by recording and analyzing each application interaction and screen view,
reducing the risk of theft, information leakage, internal fraud and payments fraud, as well as
decreasing the cost of regulatory compliance. Case management capabilities centralize risk
management, speed investigations, and facilitate compliance with regulations pertaining to Anti
Money Laundering (AML), the Health Insurance Portability and Accountability Act (HIPAA), and Know
Your Customer (KYC).
Financial Messaging Solutions
Our cloud-based financial messaging solutions leverage the SWIFT global messaging network to allow
corporations to exchange financial information including payment instructions, cash reporting and
other messages related to financial transactions with their banks and counterparties around the
world. Our solutions allow banks and corporations to achieve lower costs, rapid implementation,
greater security and improved risk management while avoiding costly internal infrastructure.
Payment and Document Automation
Our payment automation solutions can generate a wide variety of domestic and international
payment instructions along with consolidated bank reporting of cash activity. Our solutions can reduce
administrative expenses and strengthen compliance and anti-fraud controls. Users are able to gather
and access data via the web on payment and bank account information, including account totals and
detailed transaction data, providing improved workflow, financial reporting and bank
communications.
To help augment financial document workflow and delivery, we also offer a number of solutions
designed to automate a wide variety of business documents and supply chain processes as well as
related web-based delivery and document archive. Our products offer advanced design, output
formatting and delivery capabilities to replace paper-based forms, as well as automating the labourintensive
accounts payable processing of invoices.
Healthcare Solutions
Our solutions for patient registration, electronic signature, mobile document and payments allow
healthcare organizations to improve business efficiencies, reduce costs and improve care quality.
Leveraging our extensive experience optimizing document-driven processes, our solutions are utilized
across the acute care hospital enterprise and broader healthcare systems, accelerating the paper-toelectronic
transition while helping our customers streamline data flows.
Professional Services
Our teams of service professionals draw on extensive experience to provide consulting, project
implementation and training services to our customers. By easing the implementation of our products,
these services help our customers accelerate the time to value. By improving the overall customer
experience, these services help us retain customers and drive future revenue-generating
arrangements from existing customers.
Our Customers
Our customers are in diverse industries including financial services, insurance, healthcare, technology,
retail, communications, education, media, manufacturing and government. We provide our products
and services to approximately 60 of the Fortune 100 companies and approximately 80 of the FTSE
(Financial Times) 100 companies. Our customers include leading organizations such as Bank of
America Merrill Lynch, BBVA Compass, British Airways, Catholic Health Initiatives, Cedars-Sinai
Medical Centre, Cigna Corporation, Franklin Templeton, Fidelity, Lloyds Bank, Capital One, Deere and
Company, Target Corporation, Johnson Controls, Inc., State Farm Insurance, Sutter Health, Vodafone
and Zurich American Insurance Company.
Our Competition
The markets in which we participate are highly competitive. We believe our ability to compete
depends on factors within and beyond our control, including:
 Our ability to develop new, innovative technology solutions that meet the evolving needs of our
customers and the shifting dynamics of the markets we participate in;
 Our ability to attract and retain employees with the requisite domain knowledge and technical
skill set necessary to develop and support our products;
 The performance, reliability, features, ease-of-use and price of our offerings as compared to
competitor alternatives;
 Our industry knowledge and expertise;
 The execution of our sales and services organizations; and
 The timing and market acceptance of new products as well as enhancements to existing products,
by us and by our current and future competitors.
For our Paymode-X solution, our competitors include SunGard and AvidXchange in addition to ACH
capabilities offered by banks.
For our digital banking payments and cash management solutions, we primarily compete with
companies such as ACI Worldwide, Fiserv and FIS that offer a wide range of financial services, including
electronic banking applications. We also encounter competition in our digital banking customer
acquisition offerings from MeridianLink and D&H Corporation.
For our legal spend management solutions, we compete with a number of companies, including
Wolters Kluwer ELM Solutions, LexisNexis and Computer Sciences Corporation (CSC). Our cyber fraud
and risk management products compete with NICE Actimize, Norkom-Deitca, SAS, Fiserv, Guardian
Analytics and FairWarning.
For our financial messaging solutions, we compete with D+H Corporation, Eastnets, SunGard and
SWIFT.
For our healthcare solutions, our primary competitors are FormFast and iMedConsent.
Our payment and document automation products compete primarily with products from companies
that provide solutions to create, publish, manage and archive electronic documents and companies
that offer payments software and services. Our products also compete with companies that provide
a diverse array of accounts payable automation and workflow capabilities. We also compete with
providers of enterprise resource planning (ERP) solutions and providers of traditional payment
products, including check stock and check printing software and services. In addition, some financial
institutions compete with us as outsourced check printing and electronic payment service providers.
Exhibit 2
Bottomline Technologies Case Study – Financials
Bottomline Technologies
Income Statement
(in millions) 2018 2017 2016
$’m $’m $’m
Net sales 15,516 15,797 16,435
Cost of goods sold 9,876 10,077 10,146
Gross profit 5,640 5,720 6,289
Operating expenses 4,449 4,196 4,206
Operating income 1,191 1,524 2,083
Interest expense 75 59 75
Interest income -8 -6 -5
Income before income taxes 1,124 1,471 2,013
Income taxes 448 551 751
Net income 676 920 1,262
Weighted-average number of shares—basic 399 411 435
Weighted-average number of shares—diluted 400 413 440
Earnings per share—basic 1.69 2.24 2.9
Earnings per share—diluted 1.69 2.23 2.87
Balance Sheet
(in millions)
2018 2017
ASSETS $’m $’m
Current assets:
Cash and cash equivalents 1,783 1,370
Inventory 1,830 1,873
Other current assets 702 742
Total current assets 4,315 3,985
Property and equipment, net 2,616 2,850
Other long-term assets 679 638
Total Assets 7,610 7,473
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of debt 65 421
Accounts payable 1,243 1,112
Accrued expenses and other current liabilities 1,113 979
Income taxes payable 32 23
Total Current Liabilities 2,453 2,535
Long-term liabilities:
Long-term debt 1,248 1,310
Lease incentives and other long-term liabilities 1,005 1,083
Total Long-term liabilities 2,253 2,393
Stockholders’ equity:
Common stock $0.05 par value 20 20
Additional paid-in capital 81 —
Retained earnings 2,749 2,440
Accumulated other comprehensive income 54 85
Total stockholders’ equity 2,904 2,545
Total Liabilities and Equity 7,610 7,473
Exhibit 2 (continued)
Bottomline Technologies Case Study – Forecast Assumptions for DCF
The current historical financial information is a good starting point for building your DCF forecast and
subsequent equity valuation. Knowing that you are new to the role your VP (Vice President) on the
LBO desk has sent you an e-mail with the following key points with reference to the forecast
assumptions for Bottomline Technologies.
The key points include:
 Although sales growth has been negative in the past couple of years it has been anticipated
that with the experience of the LBO team, new operational management for Bottomline
Technologies and access to wider markets, sales can now be expected to grow by 20% per
annum.
 The EBIT margin will maintain at the current 2018 level for the foreseeable future.
 The effective tax rate for 2018 can be applied in the calculation of all forecasted NOPAT
numbers (Net Operating Profit After Tax).
 Historically Capital Expenditure (CAPEX) has been $524 (2018), $726 (2017) and $ 714 (2016)
and will be expected to remain at the 2018 level as a % of Sales for the foreseeable future.
 Depreciation in 2018 was $593 and this is also expected to remain as the same relative % of
sales in 2019 and beyond.
 An anticipated 5% of sales for investment in working capital is expected annually from 2019
and beyond.
 Post the 5 year forecast period there is expected to be wider competition in the cloud
computing market and it is anticipated that Free Cashflows from year 5 onwards will at a rate
of 7% in perpetuity.
 For DCF valuation purposes 3M uses an initial WACC of 10% to evaluate potential target
companies.
Exhibit 3
Bottomline Technologies Case Study – Leveraged Buyout (LBO) Assumptions
The directors of 3M are keen to finance the acquisition of Bottomline Technologies with a large
proportion of debt and would like to model the expected IRR on initial equity assuming an exit after
year 5.
The following assumptions should be used in your LBO valuation:
 Transaction comparable information suggests that an entry multiple of 7 times 2018 EBIT
would be a good proxy valuation for the Bottomline Technologies on a LBO basis.
 The debt on the 2018 balance sheet of Bottomline Technologies will be refinanced on the
acquisition.
 Directors of 3M anticipate using 70% Debt and 30% Equity to finance the acquisition.
 The debt financing has been structured in a manner to achieve a repayment schedule of
$500m per annum from year 1.
 With the exit multiple not expected to expand and the earliest exit expected in year 5, the
directors of 3M would like to know whether the acquisition of Bottomline Technologies would
meet their expected 45% return on equity capital.

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Dissertation Topic

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Explain how a Private Equity (PE) firm such as 3M could align their interests to the managers of Bottomline Technologies.

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