- The coursework assignment is split in to two parts with parts a and b being equally weighted with respect to grading although you will be given an overall grade for the complete assignment to allow some flexibility in the marking in order to reward good work
Part a – You have been requested to provide a short briefing report to the other directors of your business with respect to raising an additional £500m of funding to enable the next stage of development of the business to be carried out. Assume that all avenues of funding are available to the business, which is currently a listed company with 100 million shares and current market price of 1000p. The report should critically review the advantages and disadvantages of the main funding options. It would be expected that this report would include the different options available through the equity and debt markets.
Part b – This additional funding will allow the business to become more global with the opportunity to develop a market in numerous countries with payment being made in the local currency. The directors are conservative in their attitude to risk. Provide a report to the directors critically evaluating alternative derivatives including forwards, futures and options that are available in the market in order to minimise the risk with respect to payment in international currencies.
(Word Count approximately 4000 words)