Description

APPLIED PROJECT IN FINANCE (FIN4216)

PROJECT

You will play the role of a financial manager of a multinational company, who will propose entire financial requirement of a company. You will present your findings in two forms:

• A written project report.
• A presentation of the results of your findings

Presentation: 20% of the Total Mark

The presentation to the examiners must include visuals (graphs) and highlight the key results of the report. It should be no longer than 10 minutes and be given to help the examiners to understand the report.

 Criteria for the Presentation Mark

You will be presenting your project work for 10 minutes

The presentation should explain clearly to the examiner, the projects requirements

Time factor should be strictly followed to show that it had been practiced?

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Written project report: 80% of the Total Mark

Corporate Finance is a much known form of financing with high-risk, development-oriented ventures. Today, this financings generally require large amounts of capital. They are highly leveraged ventures that are funded on a non-recourse or limited recourse basis. At the center of these transactions is the capital of the company - a single-purpose entity with a finite life - which is linked to the numerous participants by contractual arrangements that cover the details of how the project will be implemented and operated. The crucial task for the finance advisers, however, is properly allocating risk to the parties who are most capable of managing the specific risk. Its emergence has resulted from a number of favorable trends, e.g., privatization, deregulation of industries, new attitudes towards the role of the private sector in developing countries and at the multilateral agencies, etc. Despite this success, some underlying questions remain about corporate finance as the financing vehicle of choice: · Infrastructure projects in developing countries require critical evaluation of political risk as well as the incorporation of, sometimes significant, risk premiums in interest margins.

1.      Choose a UAE based company for your final financial project. Discuss the company’s profile briefly.

2.      How the company’s financial performance are projected. Name the financial statements prepared by your chosen company.

3.      Select three years Income Statements and the Balance Sheet from your selected company and make a trend analysis and make a comment on the three years performance of the company.

4.      How the investors and lenders evaluate and quantify the risks of your company?

5.     Are they underestimating the risk of immobile assets in, sometimes, highly unstable countries?

6.      Explain how a company can appraise the optimal capital investment. Technique available for evaluation should be explained.  

7.      What is the cost of capital? How can you calculate the WACC

8.     Project financing entails high transaction costs due to the project specific nature of the financing vehicles being used. Will financial advisers find more ways to inject more formulaic approaches into the process and thereby reduce the enormous transaction costs of project finance?

9.      In the past few years, the capital markets have witnessed a number of project finance issues. The credit rating agencies have supported this trend by evaluating project finance offerings. Large institutional investors have participated in these issues through private placements. Will the private placement market continue to support these offerings?

10.                  To what extent will the capital markets substitute commercial bank lending to projects?

11.                  What factors does a project sponsor consider in deciding between commercial bank loans and capital market issues?

Good luck

Students are required to follow the following guidelines for submission of the Project work:

1-      The project work can be individual work

2-      Submission deadline is 27th April, 2020. Late submission attracts penalty.

3-      Follow the structure given below and list the references you used to answer the project. (you are advised to use resources other than online sources also)

4-      Project work should be in your own words and  printed onto one side of the A4  paper only – with a margin to both the left and right hand sides of the sheet

5. The soft copy should be in Ms-Word and should be submitted via TURNITIN.

6. A Hard copy filed with similarity index page must be handed over to my office, once the

     university reopens

The student is expected to satisfy:

1,2 &3. The students should be able to bring out the clear picture of the company selected for the project work and should explain and analyze the financial performance through given techniques