Order Description
please do section A only 1800 words
Module Code: FN0363
Module Title: INTERNATIONAL FINANCE AND FINANCIAL MANAGEMENT
Distributed on: Start of Term Hand in Date: See UG Office Notice Board
Instructions on Assessment:
This assignment has 2 sections; A and B.
Section A Academic Essay
(50% of Marks; 1,800 words)
You are to consider the Bloomberg News article “Fiat Chrysler Falls as M&A Prospects Hit by Report of GM Rebuff” on 25th May 2015. The article discusses the failure of Milan-based Fiat Chrysler Automobiles NV to start merger discussions with US-based General Motors, the market reaction to the failure to enter into talks and the views of Fiat Chrysler CEO Sergio Marchionne on capital requirements and capital consumption.
Fiat Chrysler Automobiles NV shares fell in Milan after the New York Times reported that General Motors Co. in March rejected an invitation from Chief Executive Officer Sergio Marchionne to discuss a merger.
The stock fell as much as 3.4 percent and was down 3 percent at 10:15 a.m., giving the company a market value of 18.6 billion euros ($20.4 billion). Fiat Chrysler has gained 45 percent this year.
“Chances that an M&A deal happens are lower now than one or two months ago,” Banca Akros analyst Gabriele Gambarova wrote in a note to clients today. While the news that GM turned down Marchionne was negative, “we argue that the best candidate for a merger is VW and that GM comes second by far,” Gambarova said, referring to a possible deal with Volkswagen AG.
Marchionne said last year in an interview with Bloomberg that he sees the potential to form a new industry leader, as automakers grapple with low returns on the growing amount of money needed to build new cars. The CEO has since been vocal on the need for consolidation, even titling a presentation to analysts last month “Confessions of a Capital Junkie,” to draw attention to the industry’s heavy capital consumption.
Marchionne e-mailed GM CEO Mary T. Barra in March to start talks on potential merger, the Times reported May 23, citing two people familiar with the matter. GM decided against meeting with Marchionne to discuss the plan, according to the Times. A Fiat spokesman declined to comment.
Marchionne said in March that a merger with GM or Ford Motor Co. would be “technically feasible,” while Barra said this month that GM can earn a better return on its own. A Ford representative said last month that the carmaker had no plan or interest other than focusing on its current business plan.
“Waiting for positive news on Ferrari’s valuation, investors are using GM’s rebuff to sell a stock which has gained more than 40 percent this year,” IG strategist Vincenzo Longo said by phone, referring to Fiat Chrysler’s plan to spin off the luxury carmaker later this year.
The article discusses how in the year to May 25th 2015 the shares in Fiat Chrysler rose by 45%. Many commentators have put this down to a strong positive reaction from investors to CEO Sergio Marchionne’s declared strategy to merge Fiat Chrysler with another major automobile manufacturer.
You are to choose two of the following three tasks (25 marks each):
1. You are required to critically discuss the impact of cost of capital & capital structure on the ability of companies to generate acceptable returns for shareholders. Your answer should display a thorough and extensive engagement with appropriate academic literature and come to an informed judgement regarding the ability of managers to adjust their capital structures to generate higher returns for shareholders both generally (i.e. for all companies) and specifically through following CEO Sergio Marchionne’s declared strategy for Fiat Chrysler.
2. You are required to critically evaluate the literature regarding the success or failure of merger and acquisition activity and conclude with an informed judgement as to whether the evidence would suggest that shareholders should welcome or be wary of M&A activity generally (i.e. for all companies), and CEO Sergio Marchionne’s declared strategy for Fiat Chrysler specifically.
3. You are required to come to a judgement regarding the ability of investors to judge the value of their equity share investments when investing in the stock market. Your answer should specifically show an engagement with the academic literature regarding both the efficiency of the stock market and share valuation. Your answer should conclude with recommendations as to how current holders of Fiat Chrysler shares should value their shares given CEO Sergio Marchionne’s declared merger strategy.
(50 Marks Total)
Section B Statement of Learning
(50% of Marks; 1,000 Words + Blog Appendices)
1. Students must submit a Statement of Learning of no longer than 1,000 words in length which summarizes their learning experience on the module and their reflections on their module experience. The statement of learning should:
a. Reflect on the student’s ability to relate what they are learning in the classroom (lecture and seminar) to real world business activities, events or decisions. (8 Marks)
b. Effectively communicate the student’s own learning journey while on the module, highlighting how they have engaged with the study of finance and financial management on a personal level through the module’s curriculum and assessment process (10 Marks)
This Statement of Learning should be no more than 1,000 words in length and is worth 18 Marks. The Statement of Learning should be underpinned by at least 8 Assessed blog posts that the students are using to support and evidence their continuous learning on the module (more blog posts are preferred than this minimum and can potentially provide students with more evidence, but quality is preferred over quantity). You should also refer to the Teaching and Learning plan for more details on the blogs.
NOTE: The Statement of Learning should be a cohesive document rather than a week-by-week summary. Students should not in their statement be repeating their Blog posts, but instead be referring to them as evidence to reinforce their points.
2. This statement is to be supported by at least eight appendices which are clearly marked as print outs of the students web-logs (blog’s) on their student experience. The Blog entries should be posted with a time-stamp so it is clearly seen that the students have engaged in a reflective learning experience in a continuous way.
Students will receive 1 mark for each appendix related to a weekly Blog post submitted (8 marks total). Assessed blog posting should commence by students no later than the end of the 4th week of teaching (Assessed Blog 1) and the last Blog post should be no later than the end of the last week of teaching. Students may (and are encouraged to) submit more than this minimum evidence to support the Statement of Learning.
Appendices should also be clearly marked in the assignment’s contents page with the date and time of when the Blog post was made.
3. Students may include more than just their own blog posts and are encouraged to comment and enter into discussions with their fellow students Blogs. These interactions should be printed out and submitted in the assignment appendices. Students are encouraged to interact and reply to blogs and students should make sure that their Blogs are allowing comments.
4. Each of the students Blog posts will be marked on their overall depth of reflection on a real world contemporary issue; the depth of ability to critically assess and analyse; and the depth of their ability to reflect on what they are being taught in seminars, lectures and through the directed reading relates to the real world which they are discussing (3 Marks for each blog. Max. 24 Marks for all 8 blogs).
Good Blog posts would be in-depth, considered, and displaying a mature ability to analyse, disseminate and discuss. Poor Blog posts are descriptive in nature, display only a surface appreciation of the issues. There is no minimum length for blog posts, however student’s are expected to realise that in-depth reflection and evidence critical thinking can take time. It is strongly suggested that students spend at least an hour and a half a week considering and writing their Blog posts. Highlighting exemplars of good blogs from previous students is a key part of the seminar activities related to the Blogging.
5. It is advised that students use a free Blog service like Google’s Blogger
(https://www.blogger.com/features )Students are advised to also be aware of the Blogger Youtube channel which has a number of helpful videos on how to liven up your blog posts:
http://www.youtube.com/user/BloggerHelp/videos
Students are not restricted to Blogger, but if they decide to use another service, they should be clear with their peer support groups as to what they are using.
6. Students may design their Blog how they wish, however it is requested that they both refrain from links to unsuitable websites and that they remember the university’s internet usage policy when posting and designing their blogs.
7. In the 3rd Seminar (after students should have made their Trial Blog posts) time will be made for some discussion and feedback to students in the classroom as a class discussion regarding the quality and depth of their respective first blog posts. It is thus critical that all students have made their Trial blog posts before the 3rd seminar. In the 3rd seminar time will also be made for students to swap the internet addresses of their Blogs to their peer support group. Time will again be made in week 9 to look at both the assignment and the blogs in a classroom discussion.
8. The Trial Blog & Assessed Blog Two, Five and Seven are “Multimedia Blogs” in which the student is directed in the Teaching & Learning Plan to watch a particular documentary, movie or other multimedia resource which has been placed on Blackboard. Students are reminded that these blogs are explicitly not for you to simply say what the programme was about, and that blogs which simply reiterate what the resource said, rather than concentrating on reflection and student learning, will receive very poor grades.
9. Students are advised to consider what they Blog about carefully before starting the process and to remember that the entire point of the weekly blog is to support and provide evidence for the 1,000 word Statement of Learning. Consider before you start the process the marking in light of the Statement of Learning (see point 1) and craft your Blog posts so that you’re able to maximize the evidence you can show in your statement. What you decide to Blog about and reflect on is your choice as a student. However, as general advice:
a. You should try and relate your Blog post to the subject matter of the weekly lecture and seminar to maximise your marks (remember 8 marks in the Statement of Learning are for ability to apply classroom ideas to the real world). Use the Teaching and Learning Plan to help you.
b. Be creative and don’t view this as a chore or requirement. Try and take time rather than rushing this. The Blog is marked on depth of reflection and consideration. This can’t be rushed. Remember that deep and considered blog posts will allow you to evidence more and maximise your “critically assess” and “critically analyse” 10 marks in the Statement of Learning.
c. Bring in contemporary issues or things happening that week in the news. Use the Blog to display what you’ve been reading about. Perhaps before blogging have a search through the Financial Times for that week (Using Nexis UK via NORA) or have a read of what other top Business Bloggers are Blogging about. Try and make your blog posts as contemporary and timely as possible to maximise marks. Don’t Blog about something what happened last year, Blog about things happening now, and things you may want to talk about in interviews with future employers etc.
In summary:
Marks breakdown: 18 Marks For Statement of Learning
1 Mark for each of the required Blog posts (8 Marks Total)
3 Marks for content of each Blog post (24 Marks Total)
(50 Marks Total)
Important note about ARNA regulations
The regulations specify that students must complete every assessment component contributing to the modules on their programme. This applies to all forms of assessment as defined in the module descriptor. Please note that:
• if any assessment component is not completed, students will be failed in the module even if the module pass mark has been achieved;
• if the requirements for referral specified in section 5 of ARNA1 are met, a resit opportunity will be given;
• if unable to complete an assessment component because of extenuating circumstances, students should follow the procedure described in the Student Guide to Extenuating Circumstances1.
This change was approved by Academic Board on 12 October 2009 in consultation with the Students’ Union. Students should consult their Programme Leader or Guidance Tutor if they have any queries. Independent advice and support is also available from the Students’ Union Advice & Representation Centre ([email protected]) or from a student adviser in Student Services.
1ARNA and the Student Guide to Extenuating Circumstances Affecting Assessed Work are available from http://www.northumbria.ac.uk/sd/central/ar/lts/assess/assproc/assdocstud/
Word limits and penalties for assignments
If the assignment is within +10% of the stated word limit no penalty will apply.
The word count is to be declared on the front page of your assignment and the assignment cover sheet. The word count does not include:
• Title and Contents page • Reference list • Appendices • Appropriate tables, figures and illustrations
• Glossary • Bibliography • Quotes from interviews and focus groups.
Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count.
If this word count is falsified, students are reminded that under ARNA page 30 Section 3.4 this will be regarded as academic misconduct.
If the word limit of the full assignment exceeds the +10% limit, 10% of the mark provisionally awarded to the assignment will be deducted. For example: if the assignment is worth 70 marks but is above the word limit by more than 10%, a penalty of 7 marks will be imposed, giving a final mark of 63.
Students are advised that they may be asked to submit an electronic version of their assignment.
Time limits and penalties for presentations
The time allocated for the presentation must be adhered to. At the end of this time, the presentation will be stopped and will be marked based on what has been delivered within the time limit.
Submission of Assessment:
All assignments must be submitted via the Undergraduate Programme Office. Each assignment must be accompanied by an Assessed Work Form which must be completed in full. The assignment will not be accepted by the Undergraduate Programme Office unless the form is completed correctly.
Marked assignments will be returned to students. It is advisable to retain a copy of your assignment for you own records. Your mark will be returned on the Assessed Work Form via the Undergraduate Programme Office.
Referencing your work
The APA method of referencing uses the author’s name and the date of the publication. In-text citations give brief details of the work you are referring to in your text. References are listed at the end of the text in alphabetical order by the author’s name. The general format of an electronic journal reference in the APA style is shown below:
Coutu, D. (2009). Why Teams Don’t Work. Harvard Business Review, 87(5), 98-105. Retrieved 29th April 2012 from EBSCO http://searchebscohost.com
Author/s name and initials are listed first, followed by year of publication in brackets. Then there is the title of article and the journal where the article appears, which is in italics. Then state the volume and issue number (in brackets) along with the pages where article can be located. Finally add the date the article was retrieved and then the name of the database, followed by the web address. Wherever possible use the homepage URL rather than the full and extended web address.
For further information on why it is important to reference accurately go to the Referencing and Plagiarism topic in Skills Plus available from the Library website:
www.northumbria.ac.uk/skillsplus
You will find other useful help guides on Skills Plus to help you with the skills involved in writing your assessments and preparing for exams.
For further information on the APA style of referencing see the Concise Rules of APA style and the APA website http://www.apastyle.org/learn
Plagiarism and Cheating
Your attention is drawn to the University’s stated position on plagiarism. THE WORK OF OTHERS, WHICH IS INCLUDED IN THE ASSIGNMENT MUST BE ATTRIBUTED TO ITS SOURCE (a full bibliography and/or a list of references must be submitted as prescribed in the assessment brief).
Please note that this is intended to be an individual piece of work. Action will be taken where a student is suspected of having cheated or engaged in any dishonest practice. Students are referred to the University regulations on plagiarism and other forms of academic irregularity. Students must not copy or collude with one another or present any information that they themselves have not generated.
For further information on Plagiarism, see the Referencing and Plagiarism topic on Skills Plus.
www.northumbria.ac.uk/skillsplus
Mapping to Programme Goals and Objectives:
This assessment will contribute directly to the following Undergraduate programme goals and objectives.
1. Knowledgeable about the theory and practice of international business and management
Objectives:
Students will be able to:
1. Acquire knowledge of functional areas of business and management.
2. Acquire knowledge of specialist areas of business.
X 3. Apply their knowledge to business and management contexts.
4. Conduct contemporary research into business and management.
2. Skilful in the use of professional and managerial techniques and processes
Objectives:
Students will be able to:
1. Provide evidence of self reflection as a means of informing personal development planning.
2. Demonstrate effective interpersonal communication skills and the ability to work in a team.
X 3. Demonstrate critical thinking skills.
X 4. Demonstrate problem solving skills.
3. Aware of ethical issues impacting on business and professional practice
Objectives:
Students will be able to:
X 1. Identify an ethical dilemma in a business situation
X
2. Suggest ethical solutions to this dilemma
4. Employable as graduates
Objectives:
Students will be able to:
1. In the context of securing graduate employment demonstrate the skills of self presentation.
Assessment Criteria (NBS)
The first column indicates the general assessment criteria used within NBS the second column indicates the specific criteria used when marking your assessment.
Mark General Criteria Module Assessment Criteria for Section A
First
(80 – 100) Exceptional scholarship for subject. Outstanding ability to apply, in the right measure, the skills necessary to achieve highly sophisticated and fluent challenges to received wisdom. Answer is cohesive and displays well the student’s independent studies and research, with extensive citations throughout displaying a depth of knowledge. Answer displays well students ability to comprehend that finance is an inter-linked subject and that value, and the concept of how value is created, is a combination of the different attributes which we examine of the course including the creation of value though dividend policy, capital structure etc. Students answer is fluent and displays a depth understanding.
First
(70 – 79) Knowledge and understanding is comprehensive both as to breadth and depth. A mature ability to critically appreciate concepts and their inter-relationship is demonstrated. Clear evidence of independent thought. Presentation of work is fluent, focused and accurate. A well researched analysis which displays critical skills well. Student displays well an application to the academic dissection of a quotation and a cohesive, fluid and compelling breakdown of the concept of value. Independent study is evidenced clearly by student going far beyond the recommended journals and reading list of the module. Academic critical thinking skills well evidenced.
Upper Second (60 – 69) Knowledge base is up-to-date and relevant, but also may be broad or deep. Higher order critical appreciation skills are displayed. A significant ability to apply theory, concepts, ideas and their inter-relationship is illustrated. Literature used is from relevant journals (journal of finance etc) but use of literature to reinforce points isn’t as coherent or cohesive as it could be. Student displays analytical skills well when evaluating value and the quotation, but there lacks fluidity in the writing and an ability to display a depth of appreciation of the inter-related nature of the concept of value.
Lower Second (50 – 59) Sound comprehension of topic. Reasoning and argument are generally relevant but not necessarily extensive. Awareness of concepts and critical appreciation are apparent, but the ability to conceptualise, and/or to apply theory is slightly limited. Student clearly is able to show what value is, and displays a sound ability to apply many of the main concepts surrounding value in corporate finance to the assignment, but the analytical academic dissection of the quotation is lacking in cohesiveness and fluidity. Student’s answer uses the Literature recommended on the teaching and learning plan, but seldom goes beyond this, or alternatively, the literature they do rely on to support their claims isn’t of a high quality.
Third
(40 – 49) Knowledge is adequate but limited and/or superficial. In the most part, description/assertion rather than argument or logical reasoning is used. Insufficient focus is evident in work presented. Student acknowledges what value is in corporate finance, but answer lacks evidence of an ability to display good analytical critical thinking skills. Answer is somewhat one-dimensional at times, lacking depth and evidence of reading beyond the teaching and learning plan.
(30 – 39) Minimal awareness of subject area. Communication of knowledge frequently inarticulate and/or irrelevant. Students answer is descriptive of what value is in corporate finance and lacks evidence of critical analytical ability. Answer probably lacks any semblance of coherence and fluidity and probably relies of definitions etc. Possibly literature is used to evidence academic research, but “patch-writing” or similar may be evidenced.
(0 – 29) Poor grasp of topic concepts or of awareness of what concepts are. Failure to apply relevant skills. Work is inarticulate and/or incomprehensible. See general guidelines.
Note: For those assessments or partial assessments based on calculation, multiple choice etc. Marks will be gained on an accumulative basis. In these cases, marks allocated to each section will be made clear.
Students must retain an electronic copy of this assignment and it must be made available within 24 hours of them requesting it be submitted.
