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Business and Financial Analysis Case Studies BFA302

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    BFA302

DEGREE: MSC in Finance and Investment (UCA)

Module: Business and Financial Analysis

Assignment Title: Business and Financial Analysis Case Studies Assignment Type: Essay

Plagiarism:

When submitting work for assessment, students should be aware of the Inter Active/Canvas guidance and regulations in concerning plagiarism. All submissions should be your own, original work.

You must submit an electronic copy of your work. Your submission will be electronically checked.

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Student signature: Date:

Harvard Referencing:

The Harvard Referencing System must be used. The Wikipedia, UKEssays.com or similar websites must not be used or referenced in your work.

Introduction :

This assignment aims to assess your business and financial analysis expertise through a series of case studies, enabling you to apply these skills in practical, real-world scenarios. You are required to download the annual reports from the past three years for two selected companies (Excludes Banks and financial services companies) listed in the NYSE TOP US 100 Index. Utilize these reports to address the following case studies, employing various analytical tools as specified below:

  1. As a credit risk analyst at Bank of America , you specialize in evaluating corporate loan applications. Two corporate clients, owners of the selected companies listed on the NYSE, have requested $20 million in You need to analyze their financial status using common size statement analysis (both vertical and horizontal). Additionally, assess their financial health by examining liquidity, solvency, profitability, asset management efficiency, and stock market value through financial ratios. Compare these results with industry averages to decide whether to approve or reject the loan applications. LO1, LO4.

  1. As a financial consultant at Deloitte, you have been approached by two companies fromthe selected NYSE-listed firms seeking advice on their business and financial risk exposure. Utilize the Altman Z-score model to predict the likelihood of bankruptcy for both companies, providing insights into their financial stability and potential risks. Assess their business risk exposure and the degree of financial and operating Review their cash flow statements and calculate key ratios, including cash flow and free cash flow (FCF) ratios. Based on this analysis, advise which company has a higher exposure to business and financial risk. LO2, LO4.

  1. Asa financial manager at Volkswagen in Germany, you are tasked with advising top management on expanding and diversifying businesses into the US market by acquiring one of the two selected companies listed in the NYSE TOP 100 Index. Calculate the fair value of both companies using the Free Cash Flow (FCF) model and compare these values with their market values. Provide a recommendation on which company to acquire based on this analysis. LO3, LO4.

  1. Asa financial advisor at JPMorgan Chase , a client has sought your technical advice on investing in one of the two selected NYSE-listed companies. Utilize the Dividend Discount Model (DDM) and Free Cash Flow (FCF) models to assess the intrinsic value of the stocks. Advise the client on which stock is a better investment and explain your reasoning.LO3, LO4.

Note: For grading purposes, it is essential to include all relevant formulas, calculations, interpretations, analyses, conclusions, recommendations, and decision-making processes in your report.

READING LISTS1

Essential Johnson G and Scholes K. 2005. Exploring Corporate Strategy 7th edition Prentice Hall

Fridson, M.S. and Alvarez, F. 2005 Financial Statement Analysis Workbook: A Practitioners Guide, 4th Edition. Wiley. ISBN: 978-0-470-64003-6

Palepu, K.G., Healy, P.M., Wright, S., Bradbury, M. and Coulton, J., 2020. Business analysis and valuation: Using financial statements. Cengage AU.

Wahlen, J.M., Baginski, S.P. and Bradshaw, M.T., 2018. Financial reporting, financial statement analysis, and valuation: A strategic perspective. Cengage learning.

Rashid, C.A., 2018. Efficiency of financial ratios analysis for evaluating companies liquidity. International Journal of Social Sciences & Educational Studies, 4(4), p.110.

Fridson, M.S. and Alvarez, F., 2022. Financial statement analysis: a practitioner's guide. John Wiley & Sons.

GRADING DESCRIPTORS: LEVEL 7

EXPERIMENTATION & INNOVATION

FAIL

PASS

Threshold Criteria

0- 29%

30- 39%

40- 49%

50- 59%

60- 69%

70- 79%

80- 89%

90- 100%

Deals with complex issues both systematically and creatively demonstrating self- direction and originality in tackling and solving problems

Little to no ability to use techniques to deal with complex issues systematically (including those of ethics and sustainability) and creatively to solve problems and/or make decisions.

Low

utilisation of established techniques to deal with complex issues systematically (including those of ethics and sustainability) and creatively to solve problems and/or make decisions, but with limitations in techniques or approach.

Limited

research or advanced scholarship to their area of study by using a range of information and established and advanced techniques

Competent understanding of

solving problems, through own research or advanced scholarship displaying a comprehensive understanding of established and advanced techniques

Good

understanding of solving problems through own research and advanced scholarship critically selecting and displaying a comprehensive understanding of established and advanced techniques.

Very Good

problem-solving skills displaying a comprehensive understanding of techniques applicable to their own research or advanced scholarship

Excellent range of extremely well- developed problem- solving displaying an understanding of techniques applicable to their own research or advanced scholarship beyond which is taught.

Exceptional

problem-solving skills with sophisticated evaluation and application of a wide range of advanced information and techniques to undertake projects.

Comprehensive

Little to no

Low

Limited

Competent

Good understanding

Very good

Excellent

Exceptional

understanding of

understanding of

understanding of

understanding of

understanding of

of techniques

understanding of

understanding of

understanding of

techniques

applicable to their

techniques applicable

to their own research

techniques applicable to their own research

key techniques

applicable to their

techniques applicable

to their own research

applicable to their

own research or

techniques applicable

to their own research

techniques applicable

to their own research

techniques applicable to their

own research or

or advanced

or advanced

own research or

or advanced

advanced scholarship

or advanced

or advanced

own research or

advanced

scholarship or their

scholarship including

advanced

scholarship including

and a some

scholarship and a

scholarship and

advanced

scholarship

limitations and

their limitations and

scholarship including

their limitations and

understanding of

some understanding

mastery of some

scholarship and

ambiguities.

ambiguities.

their limitations and

ambiguities.

ambiguities

more specialised

techniques.

of more specialised

techniques.

more specialised

areas.

mastery of some more specialised

areas.

GRADING DESCRIPTORS: LEVEL 7

RESEARCH & ANALYSIS

FAIL

PASS

Threshold Criteria

0- 29%

30- 39%

40- 49%

50- 59%

60- 69%

70- 79%

80- 89%

90- 100%

Systematic

Little to no

Low knowledge of

Limited knowledge to

Competent

Good knowledge of

Very good knowledge

Excellent knowledge

Exceptional

understanding of

knowledge of the

the subject lacking

deal with terminology,

knowledge of ideas

ideas or arguments at

of ideas or arguments

of ideas or arguments

knowledge of ideas

knowledge, and a

subject with limited

coherence, breadth,

facts and concepts

or arguments at the

the forefront of any

at the forefront of

at the forefront of

or arguments at the

critical awareness of

breadth or depth or

or detail with only

some of which is

forefront of any

part of the subject

the subject some of

the subject many of

forefront of the

current problems

deficiencies in major

some reference to

informed by the

part of the subject

showing a clear,

which are

which are

subject most of which

and/or new insights,

areas or currency.

ideas or arguments at

forefront of defined

sufficient to deal

critical insight into

significantly beyond

significantly beyond

are significantly

much of which is at,

the forefront of any

areas of the subject.

with current issues

the discipline as

what has been taught

what has been taught

beyond what has

or informed by, the

part of the subject.

in the discipline,

whole and current

and show a critical

and show a critical

been taught and

forefront of their

generally more

issues/problems.

insight into the

insight into the

show a critical insight

academic discipline,

descriptive than

discipline and current

discipline and current

into the discipline

field of study or area

critical or

issues/problems.

issues/problems.

and current

of professional

analytical.

issues/problems.

practice

Conceptual

Little to no conceptual

Low conceptual

Limited conceptual

Competent

Good conceptual

Very good conceptual

Excellent conceptual

Exceptional

understanding that

understanding or

understanding and

understanding and

conceptual

understanding which

understanding which

understanding which

conceptual

enables the student

argument and a focus

arguments are weak

argument

understanding and

critically evaluate and

systematically

critically apply a wide

understanding of

to display originality

on descriptive

or poorly

construction with

argument

synthesise other

synthesises a wide

range of views

publishable quality

in the application of

explanations which

constructed, and the

critical evaluation of

construction with

views and

range of views with a

through a perceptive

with systematic

knowledge

do not comment on

work does not

alternative views or

critical evaluation

information with a

critical insight into

use of advanced

engagement and

arguments of others

critically evaluate the

comment on advanced

of a range of views

thoughtful

advanced

scholarship.

usage of advanced

or alternative views.

arguments of others

scholarship.

and consistent

interpretation of

scholarship.

scholarship.

or consider

engagement with

advanced

alternative views.

advanced

scholarship.

scholarship.

GRADING DESCRIPTORS: LEVEL 7

ENGAGING WITH PRACTICE

FAIL

PASS

Threshold Criteria

0- 29%

30- 39%

40- 49%

50- 59%

60- 69%

70- 79%

80- 89%

90- 100%

Practical

Little to no evidence

Low evidence of

Limited

Competent

Good background

Very good,

Excellent

Exceptional

understanding of

of background

background

background

investigation,

investigation,

independent,

independent,

investigation,

how established

investigation,

investigation,

investigation,

analysis, research,

analysis, research,

extensive and

extensive and

analysis, research,

techniques of

analysis, research,

analysis, research,

analysis, research,

enquiry, ethical

enquiry, ethical

appropriate

appropriate

enquiry, ethical

research and

enquiry, ethical

enquiry, ethical

enquiry , ethical

awareness, and/or

awareness, and/or

investigation,

investigation,

awareness, and/or

enquiry are used

awareness, and/or

awareness, and/or

awareness, and/or

study using

study using

analysis, research,

analysis, research,

study which

to create and

study.

study.

study using

established

established

enquiry, ethical

enquiry, ethical

demonstrates

interpret

established

techniques

techniques

awareness, and/or

awareness, and/or

carefully considered

knowledge in the

techniques, with

accurately, and can

accurately, and

study beyond the

study well beyond

depth and breadth

discipline

the ability to

critically appraise and

possesses a well-

usual range, and

the usual range, and

and critically

extract relevant

use academic

developed ability to

critically evaluates

critically evaluates

synthesises this to

points.

sources.

critically appraise a

this to advance the

this to advance the

advance the work

wide range of

work and/or direct

work and/or direct

and/or direct

sources.

arguments.

arguments.

arguments.

Originality in

Little to no technical,

Low technical,

Limited

Competent technical,

Good technical,

Very good range of

Excellent range of

Exceptional range of

the

creative or artistic

creative or artistic

technical,

creative or artistic

creative or artistic

technical, creative or

technical, creative or

technical, creative or

application of

skills related to their

skills related to their

creative or

skills required for

skills required for

artistic skills.

artistic skills

artistic skills

knowledge

area of study.

area of study.

artistic skills

area of study.

area of study.

required for

area of study.

Independently

Little to no

Low contribution to

Limited contribution

Competent

Good contribution to

Very good

Excellent

Exceptional

advance your own

contribution to group

group activity and/or

to group activity

contribution to group

group activity and/or

contribution to group

contribution to group

contribution to group

knowledge and

activity and/or

undertaking further

and/or undertaking

activity and/or

independently

activity and/or

activity and/or

activity and/or

understanding, and

undertaking further

training at a

further training at a

independently

undertakes further

independently

independently

independently

to develop new

training at a

high/advanced level.

high/advanced level.

undertakes further

training at a

undertakes further

undertakes further

undertakes further

skills to a high

high/advanced level.

training at a

high/advanced level

training at a

training at a

training at a

level.

high/advanced level.

with an

high/advanced level

high/advanced level

high/advanced level

understanding of

with an

with teamwork and

with teamwork and

team roles

understanding of

leadership

strong leadership.

team roles

GRADING DESCRIPTORS: LEVEL 7

REALISATION & COMMUNICATION

FAIL

PASS

Threshold Criteria

0- 29%

30- 39%

40- 49%

50- 59%

60- 69%

70- 79%

80- 89%

90- 100%

Communicate

Little to no clarity in

Low clarity in the

Limited clarity in the

Competent

Good, confident and

Very good, confident

Excellent

Exceptional

information, ideas,

the communication

communication of

communication of

communication of

clear communication

and clear

communication of

communication of

problems and

of ideas, problems

ideas, problems and

ideas, problems and

ideas, problems and

of ideas, problems

communication of

ideas, problems and

ideas, problems and

solutions to both

and solutions to

solutions to

solutions to

solutions to

and solutions to

ideas, problems and

solutions to

solutions to

specialist and non-

audiences.

audiences.

audiences.

audiences.

audiences in a range

solutions to

audiences in a range

audiences in a range

specialist audiences.

of means / media.

audiences in a range

of means / media.

of means / media.

of means / media.

GRADING DESCRIPTORS: LEVEL 7

PERSONAL & PROFESSIONAL CONNECTIVITY

FAIL

PASS

Threshold Criteria

0- 29%

30- 39%

40- 49%

50- 59%

60- 69%

70- 79%

80- 89%

90- 100%

Independently advance your own knowledge and understanding, and develop new skills to a high level.

Little to no contribution to group activity and/or undertaking further training at a high/advanced level.

Low contribution to group activity and/or undertaking further training at a high/advanced level.

Limited contribution to group activity and/or undertaking further training at a high/advanced level.

Competent contribution to group activity and/or independently undertakes further training at a high/advanced level.

Good contribution to group activity and/or independently undertakes further training at a high/advanced level with an understanding of team roles

Very good contribution to group activity and/or independently undertakes further training at a high/advanced level with an understanding of team roles

Excellent contribution to group activity and/or independently undertakes further training at a high/advanced level with teamwork and leadership

Exceptional contribution to group activity and/or independently undertakes further training at a high/advanced level with teamwork and strong leadership.

Qualities and transferable skills necessary for employment requiring: (a) the exercise of initiative, ethical and personal responsibility

(b) decision- making in complex and unpredictable contexts

Little to no ability to manage learning and/or exercise initiative, ethical and personal responsibility and/or decision- making in complex and unpredictable situations

Low ability to manage learning and/or exercise initiative, ethical and personal responsibility and/or decision-making in complex and unpredictable situations

Limited ability to manage learning and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations

Competent ability to manage learning, and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations

Good ability to systematically manage learning, and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations

Very good ability to systematically manage learning, and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations.

Excellent ability to manage learning on own initiative, and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations

Exceptional ability to manage learning on own initiative, and exercise initiative, ethical and personal responsibility, and decision-making in complex and unpredictable situations

Little to no use of appropriate terminology, limited vocabulary and many errors in spelling, grammar and syntax.

Low use of appropriate terminology, with many errors in spelling, vocabulary and syntax.

Limited expression, style and appropriate vocabulary with errors in spelling, grammar and syntax which affect understanding.

Competent expression, style, and appropriate vocabulary with some errors in spelling, grammar and syntax which do not affect understanding.

Good expression, style and appropriate vocabulary with some errors in spelling, grammar and syntax.

Very good expression, style and appropriate vocabulary with minimal errors in spelling, grammar and syntax.

Excellent expression, style and appropriate vocabulary with minimal errors in spelling, grammar and syntax.

Exceptional expression, style and appropriate vocabulary with no errors in spelling, grammar and syntax.

Little to no evidence of basic numeracy or digital literacy,

hardware and software skills

Low evidence of basic numeracy or digital literacy, hardware and software skills competency.

Limited evidence of numeracy or digital literacy, hardware and software skills competency.

Adequate evidence of numeracy or digital literacy, hardware and software skills competency.

Good evidence of numeracy or digital literacy, hardware and software skills competency.

Very good evidence of numeracy or digital literacy,

hardware and software skills

Excellent evidence of numeracy or digital literacy, hardware and software skills competency.

Exceptional evidence of numeracy or digital literacy, hardware and software skills competency.

competency.

competency.

Does not demonstrate achievement of professional competence when assessed against the requirements of a professional, statutory or regulatory body (PSRB).

The student has demonstrated achievement of professional competence when assessed against the requirements of a PSRB.

Inaccurate use of terminology with limited vocabulary and many errors in spelling, grammar and syntax.

Inaccurate terminology, with many errors in spelling, vocabulary and syntax.

The student has adhered to the appropriate rules and/or conventions set by regulators or the industry.

Performance criteria

Feedback and questions

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  • Posted on : June 18th, 2025
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