accounting and financial management Assignment: UNIVERSITY O

accounting and financial management Assignment: UNIVERSITY OF SUNDERLAND

accounting and financial management Assignment

论文题目：accounting and financial management
论文语言：English
指导价格：
论文专业：Master of business studies
字数：3000 最多
学校国家：U.K.
是否有数据处理要求：否
您的学校：university of sunderland
论文用于：Master assignment 硕士课程作业
截止日期：2010－5－10
补充要求和说明：
抄袭率不得超过20％
使用Harvard referencing style
所有要求按老师的assessment 需求执行 请仔细阅读

accounting and financial management UNIVERSITY OF SUNDERLAND

LEVEL    M
MODULE: ACCOUNTING AND FINANCIAL MANAGEMENT
ASSIGNMENT CODE:  PGBM12 – 2009/10      
TUTOR:    DONGLIN PEI

Due date:   2:00pm Tuesday 11th May 2010

Assessment weight:  100% of module

Limited words:   3,000 maximum

Outcomes Assessed:http://www.ukassignment.org/Accounting_Essay/

All module learning outcomes, knowledge and skills, are assessed in this assignment.

This assessment is in three parts, please answer all elements.

Please note that this is an individual assignment and the policy of the University on “Policy on Cheating, Collusion and Plagiarism” applies.
Please write your Tutor’s name clearly on the front of the assignment.

CASE STUDY

Demast Leisure Plc

Chairman’s report from Demast Leisure’s annual report in 2009:

‘The company’s financial position has never been stronger. Turnover has risen 209% and the share price has almost doubled during the last four years. The board of the company has decided to build a number of new five-star hotels in the UK and, our objective is to become the largest hotel group in the UK within five years.’

Relevant ratios calculated from its financial statements are shown below:

Ratios 2006 2007 2008 2009
Return on Capital Employed  25% 24% 21% 15%
Return on Equity 17% 16% 13% 10%
Stock turnover (days) 45 44 52 59
Debtor collection (days) 63 51 56 50
Current ratio 0.85 0.73 0.68 0.68
Acid test ratio 0.50 0.40 0.36 0.32
Gearing  83% 72% 117% 109%
Interest cover (times) 4.8 4.4 3.3 2.6
EPS (pence) 6.0 7.0 7.0 8.2
P/E ratio 13.7 14.9 17.1 19.4
Share price (pence) 82 104 120 159

Part A

As a financial analyst, by using ratios analysis, you are required to evaluate the company’s business performance and appraise whether you agree with the chairman.#p#分页标题#e#

Total for part A: 50%

Part  Bhttp://www.ukassignment.org/Accounting_Essay/

Demast Leisure is currently making investment appraisals of two potential long-term hotel projects, A and B. Both projects require the same initial investment of £20m. The following ratios have been calculated for the projects.

 Ratios      Project A Project B

 Payback period (years)         4        5
 Accounting Rate of Return (ARR %)      15      18
 Net Present Value (NPV £m in 15 years)   120    145
 Internal Rate of Return (IRR %)      16      14
 
You are, by using any relevant information and calculated ratios from Part A, required to provide recommendations to the directors for a choice of either project A or project B. Demast Leisure is not able to undertake the above two projects at the same time or a mixed project of A and B.

Total for part B: 30%

Part C

By using any relevant information provided in Part 1 and Part 2, explain and critically evaluate:
1. Main sources of finance which are available for Demast Leisure to finance the chosen project in Part 2, and (10%)
2. Major techniques of budgeting and working capital management which can be recommended to support the running of the chosen project successfully. (10%)

Total for Part C: 20%

Notes:

1. Demast Leisure Plc is a fake company.
2. Any necessary and reasonable assumptions regarding the companies are acceptable.
3. All calculations should be clearly shown and attached in appendixes.
4. To obtain a high mark, you should:
a) Make your report concise,  precise, and well presented and structured;
b) Draw logical conclusions from accounting information;
c) Synthesise information in a coherent and useful way;
d) Show evidence of key text and background reading;
e) Incorporate your knowledge into an integrated piece of work; and
f) Demonstrate critical understanding of financial management.

5.  A Harvard standard reference is required for the report.