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Overview
The major assignment is worth 40% of total unit assessment and is due Tuesday 13 May 2008 at 8pm by email to the course coordinator in a MS Word document with no more than one other document in MS Excel – both documents are to be named with your surname (eg ‘Smith.doc’) NOT ‘Assignment.doc’. Do not send a PDF document or a document in any other form, other than ‘all files’ if you are using a Mac.
Note that there is an assignment sheet (‘First page of assignment.doc’) at this link (Bb → Assessment) that needs to be completed by you and that requires you make a declaration that the work (including the process that you use for completing the assessment) is your own, you need not attach an electronic signature. Students will be deemed to have made the declaration by typing their name into the space provided in the assignment sheet. Start the assignment answer on the next page that may be created by moving the curser to the bottom of the document and entering keystrokes ‘CONTROL – ENTER’.
This is an individual assignment that requires not just understanding of the unit materials but personal initiative. Therefore it is expected that your assignment will be your own work and will not resemble in content or structure another person’s work.
The task
You are placed in the role of relationship manager (or Account Officer) for a large international bank. This means that you are responsible for managing the bank´s relationships with a number of major clients. One of the relationship manager’s most important tasks is to identify any specific financing needs that your clients have and then attempt to meet them using one of the bank´s financing products.
This major assignment asks you to go through the process of originating a loan for one of your clients. There are four specific pieces of work that you must submit;
1. Full credit analysis of the proposed loan and the borrower, in the form of a Credit Application Memorandum, to be used in your bank´s internal approval process;
2. Analysis of the economic benefit of the proposed loan to your bank;
3. A term sheet outlining the major terms and conditions of the proposed loan; and
4. A letter of offer to the client, to go with the term sheet, proposing the new loan and outlining why the client should choose it.
The specific form of each piece of work and the criterion under which they will be assessed are set out below. There are also set milestones that you need to meet during semester, and marks will be deducted from your final grade should these not be met. These are designed to ensure that you work consistently on the assignment throughout the semester.
Your client must be a real entity about which public financial and business information is readily available, but otherwise the identity of the client and the nature of the loan that you propose for them are entirely yours to choose as per the process we have followed to date.#p#分页标题#e#
Where necessary information is not available then you are free to make assumptions as long as these are clearly described. You are encouraged, however, to base your work on real information as far as possible. The only other conditions are (i) that no other student has already selected that client, and so you must get approval once you have made your choice, (ii) that the client is not a financial institution, (iii) that the client is not your employer or in any way associated with you and (iv) that you or someone known to you have not completed assessment at QUT or elsewhere (for example FINSIA/KAPLAN) that you might use (or have access to) for the completion of this assessment.
Items of Assessment
All written work is expected to be undertaken using Word or equivalent, and must be in pages A4 size, 12 point Times New Roman font with 6 point spacing after each paragraph (in Word go to "Format" then "Paragraph").
Financial analysis, including forecasts and economic benefit analysis,http://www.ukassignment.org/daixieAssignment/daixieyingguoassignment/ is expected to be undertaken using Excel or equivalent. 10 point Arial font must be used, and pages should be A4 size in Landscape orientation.
Credit Application Memorandum
You must prepare a full Credit Application Memorandum (a "CAM") which will be submitted to your bank´s credit committee, together with the analysis of economic benefit and term sheet, for consideration and hopefully approval to offer the loan to the client.
The CAM should be in the form outlined in Week 5. You must also include Financial Forecasts to cover the terms of the proposed loan and 3 years of historical financial statements. You may prepare and submit File Notes which contain more detailed analysis that supports the statements made in the CAM and the forecasts.
The CAM itself, excluding the financial forecasts, must be no longer than 4 pages. It may be supplemented with up to 10 pages of File Notes. Financial Forecasts must be no longer than 5 pages.
For general information about credit risk analysis and the approval process please refer to the work in Weeks 4 and 5, and ADAMS 2.2. Some of this will be outlined in class in week 4 and pdfs will be posted to the Bb site for ease of access.
Economic Benefit Analysis
The economic benefit analysis should be based on the Economic Benefit Model developed in your previous financial management study – this will be discussed in Week 4, but you are free to determine how to present it. You must set out the source of all information together with all assumptions.
The analysis must be no longer than 4 pages. You may supplement it with an explanation of your methods of no more than 2 pages.
Term Sheet
For a description of term sheets see ADAMS 2.3 - 2.8. Adams is available in the reserve collection at the Library on campus. Note that a pdf will be posted for ease of access.
The term sheet must be no longer than 10 pages.#p#分页标题#e#
Letter of Offer
A letter from your bank to the client offering a loan on the terms and conditions outlined in the attached term sheet. This letter of offer has two main purposes.
First, it is the formal offer to the client which it may, by accepting, create a binding legal obligation (a "Mandate") on your bank to arrange the loan on the terms agreed. It must therefore be consistent with the loan as approved in the form outlined in the credit memorandum, contain any terms and conditions you wish to place on the mandate, and make provision for the borrower to accept the offer. (A letter of offer is also called a Commitment Letter, and is briefly described in ADAMS 2.3.1 and 2.5).
Second, it is a marketing document by which you need to convince the client of the benefits of choosing your offer. Generally you will have had significant discussions with the client about the proposed loan prior to making a formal offer and so the letter of offer usually provides a summary of the arguments you will have already made to the client.
The letter of offer must be no longer than 4 pages.
Criteria and Performance Standards
Milestones
1. By 19th March (Lecture 4) you must have selected a borrower and have it approved by me.
2. By 9th April (Lecture 6) you must have identified the loan that you are going to propose to the borrower and have a draft or outline of the arguments as to why it is the best option for your borrower.
3. By 7th May (Lecture 10) you must have first drafts or outlines completed for all four assessment items.
The penalty for failing to satisfactorily complete any milestone is a deduction of up to 5 marks for each one.
我选择的公司是： Village Roadshow Limited
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