Assignment/coursework general submission requirements Written work · Your student identification number must be clearly stated at the top of each page of your work. · Each page must be numbered. ·...

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Assignment/coursework general submission requirements Written work · Your student identification number must be clearly stated at the top of each page of your work. · Each page must be numbered. · Please use a minimum font size of 12. · Where appropriate, a contents page, a list of tables/figures and a list of abbreviations should precede your work. · All referencing must adhere to School/Institutional requirements. · A word count must be stated at the end of your work. · Your course, year of study and the relevant module must be included as a “footer” on each page. · Appendices should be kept to the minimum and be of direct relevance to the content of your work. · All tables and figures must be correctly numbered and labelled. Learning Outcomes 1. Evaluate the different sources of long-term finance and analyse their impact on capital structure and evaluate the theories of capital value 2. Evaluate current Corporate Governance regulations and evaluate dividend policy 3. Evaluatating risk, adjusting for risk and the management of risk and the risk culture including appraisal of foreign exchange risk in international operations. Assignment Brief: You are required to select a company listed in the FTSE 250 and obtain its annual reports (after seeking prior permission from the Module Leader to research the selected company). Ensure your company will enable you to meet all of the criteria given below. Using your chosen company you are required to write a report:- 1. Explaining the key sources of long-term finance used by the company and evaluate the suitability of the company’s choice on its financial gearing (10 marks) 2. Analysing the impact of the long-term sources of finance using relevant theories on capital structure (30 marks) 3. Critically evaluating the company’s dividend policy and examine the link between its dividend policy and corporate governance (30 marks) 4. Discuss the company’s exposure to risks from its international operation in general, and foreign exchange risks in particular. Within your discussion please evaluate the company’s risk culture and the strategies it uses to manage risks. (25 marks) Please note, presentation skills will contribute to 5 marks. (5 marks) Your work should include:- · information extracted from the latest annual report · relevant ratios to justify your analysis, in particular reference to financial gearing and dividend policy In view of the ‘real-life’ nature of the assessment, you are expected to research and reference media sources in addition to academic material. Please note it is expected each student chooses a unique company. Therefore, it is vital you obtain permission from your Module Leader to research a chosen company at the earliest opportunity. The maximum word limit for this assessment is 2,500 words. Your financial analysis workings should be included as an appendix, rather than part of your main body of work. ASSESSMENT GRADING – the four individual componenents will be graded as follows:- % 90 - 100A quite exceptional and outstanding answer, providing insights which would not be available publicly, and would, with some editing, be publishable. In addition to the features of the next section, this range is distinguished by the superior organisation economic use of language and totally comprehensive, given the conditions of the exercise. 80 - 89An answer which demonstrates an excellent understanding of the question and of the complexity of the issues involved. There is a sound basis of relevant factual knowledge and/or the theoretical issues involved. Most of the important issues are dealt with in a detailed, specific and systematic way. There is either some measure of original thinking in the answer or an accurate and comprehensive account is given in a way which demonstrates understanding, for example by structuring the material such that it could not have been based just on the reproduction of lecture notes and programme material. Evidence of creativity, critical approach, and wide reading beyond the core subject matter. 70 - 79As above but a slightly less consistently excellent level. Alternatively, this range of mark may be given for an answer which, while not having original insights, gives comprehensive and accurate coverage of the issues at a high level throughout the answer, without significant omissions or errors. 60 - 69The answer shows evidence of ability to maintain a personal position in original terms and shows a command of the accepted critical positions with some attempts at innovation. It is lively and highly articulated, giving evidence of knowledge, enthusiasm and control. There is demonstration of a clear understanding of the question and a grasp of the complexity of the issues involved, and there is a sound basis of relevant factual knowledge and/or theoretical issues involved, with few significant errors 50 - 59The answer shows evidence of an ability to defend on the basis of evidence and personal position in relation to an issue or aesthetic. It shows evidence of evaluation of information and synthesis of generalisations from it. There is clear evidence of selection of appropriate material, logical structure and clear argument. The answer demonstrates an understanding of the major or basic issues in the question, and there is a basis of factual knowledge and/or relevant theoretical issues. 40 - 49The answer demonstrates an understanding of the major or basic issues in the question. There is evidence of a satisfactory level of analysis and judgement including a statement of criteria. Evidence of selection of appropriate material, logical structure and clear argument are also present. The overall framework is sensible and accurate. 30 - 39Significant errors may be present. The answer is less well planned compared to above, or poorly planned, with a little clear train of thought or development of the argument. There is some evidence of ability to collate information and construct generalisations, but with a limited comment on the weighting of evidence or opinion. 20 - 29The answer may meander around the general area of the question, but with very little convenience or structure. There is no evidence of criticism, synthesis or evaluation. 10 - 19Some notes relevant to the question, but without coherence. 1 - 9Notes of little relevance to the question or only an introductory paragraph and one or two scattered thoughts
Answered Same DayDec 06, 2020

Answer To: Assignment/coursework general submission requirements Written work · Your student identification...

Aarti J answered on Jan 09 2021
158 Votes
Dominos Inc
Course Name
Course Date
Student’s Name
Dominos Inc
Introduction
Dominos Pizza is one of the leading pizza delivery company which is listed as one of the FTSE250 companies. Dominos is an international company and struggles hard to become one of the biggest pizza company by the year 2020. The company focus on providing the best returns to its franchisee in the restaurant industry. It operates in more than 12000 company own
ed and franchisee stores across the globe with more than 75 countries where it operates. The company has a strong brand awareness and also has distinctive competitive advantage which has helped the company to stay competitive in the global market.
Sources of Long term finance
Dominos has different sources of long term finances. The major component of the long term finance of the company is the long term debt. The company’s long term debt majorly includes the long term notes payables and capital lease obligations.
The company issues long term liabilities every year which has resulted in the accumulation of high long term liabilities reserve with the company. The company has high recapitalizations and notes payable which are the integral part of the long term liabilities of the company. For the recapitalization in the year 2017, the company and its subsidiaries issued new notes in pursuant to an asset backed securitization. The new notes issued were around $300 million with a floating rate senior secured loan and $600 million fixed rate senior notes.
    
    2017
    2016
    Debt Ratio
    4.269046
    3.629005
    Total Debt
    3572137
    2599438
    Divide: Total Assets
    836753
    716295
    
    
    
    Debt to equity
    -1.3059
    -1.38037
    Total Debt
    3572137
    2599438
    Total Equity
    -2735384
    -1883143
    
    
    
    Current liabilities to long term liabilities
    12.55%
    18.39%
    Total current liabilities
    398285
    403698
    Total long term liabilities
    3173852
    2195740
    
    
    
    Current liabilities to Assets
    47.60%
    56.36%
    Total current liabilities
    398285
    403698
    Total Assets
    836753
    716295
    
    
    
    Long term liabilities to Assets
    3.793057
    3.065413
    Long term liabilities
    3173852
    2195740
    Divide: Assets
    836753
    716295
    
    
    
    Current liabilities to total liabilities
    11.15%
    15.53%
    Total current liabilities
    398285
    403698
    Total liabilities
    3572137
    2599438
    
    
    
    Long term liabilities to total liabilities
    88.85%
    84.47%
    Total long term liabilities
    3173852
    2195740
    Total liabilities
    3572137
    2599438
From the above ratios, it can be inferred that the company is highly financed with debt and carries very high proportion of debt whereas the shareholder’s equity of the company is in negative which shows very weak financial condition of Dominos.
The company’s debt is around 4.27 times of the total assets held by the company as in 2017 while in 2016, the total liabilities of the company was reported to be around 3.63 times of the total assets. From the trend we can see that the proportion of liability of the company has been increasing which is one of the biggest threat to the company and its financial performance.
Considering the debt to equity ratio, we can see that the company has negative shareholder’s equity particularly because of the high retained deficit. With the high retained deficit the company has negative shareholder’s equity which is one of the weakest aspect of the company’s performance.
Considering the proportion of current liabilities and long term liabilities, we can see that the current liabilities of the company is around 47.60% of the total assets held by the company the long term liabilities is around 379.31% of the total assets of the company.
The current liabilities is around 11.15% of the total liabilities held by the company in the year 2017 whereas in 2016 the total current liabilities held by the company was 15.53%. The long term liabilities is around 88.85% of the total liabilities in 2017 and 84.47% in 2016.
From the above analysis we can clearly see that the long term financing of the company has increased incredibly through the long term liabilities. The long term liabilities which includes the notes payable are the major source of the long term finances of the company.
Historically, a large portion of the company's cash flows from operations of the company is used make principal and interest payments on of its long term...
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