Fin 665 final project guidelines and grading guide
- 1. FIN 665: Final Project Guidelines and Grading Guide https://homeworklance.com/downloads/fin-665-final-project-guidelines-and-grading-guide/ FIN 665: Final Project Guidelines and Grading Guide The final project for this course is the creation of an Individual Case Analysis. The primaryobjective of this project is for students to understand how to analyze the capital structure of a company.Students will also improve their understanding ofsome basic forms ofdebtfinancing and learn to formulate strategies in structuring debtfinancing. The case will also expose students to the process ofdebt rating and its importance.Because ofits international setting,the case provides an excellent opportunity for students to obtain an understanding ofinternational capital markets and offshore offerings.Students will applythe case method described in this document.They will define the problem,build an analysis separating the importantfacts from the peripheral data,develop alternative courses of action citing advantages and disadvantages,and make final recommendations on policies thatwill maximize value for the business. Main Elements Case Method The case method is an importanttool in educating managers byallowing students to bring to life conceptual material that is often difficult to understand withoutapplication,and aiding in integrating tools and theories students have learned by applying them to relevant managementdecisions. The cases used in this course are a record of issues and problems actuallyfaced by business executives,with supporting facts,opinions,and financial data that decisions were based on.These real-life situations are summarized by case writers who provide you with all of the relevant information thatwas available to the decision makers involved. If the information presented seems incomplete,remember thatthis only mirrors the business world realityof decision making with limited information.Obtaining more information costs time and money,resources thatare scarce in mostsituations. Each case,like each managementsituation,is unique.Since there is no one bestprocedure for solving problems or making decisions,there are no right or wrong answers in case analysis.Each class member will approach the case in a different manner.However,the following procedure can serve as a rough guide to your analysis which can be fine - tuned to personal preferences. Procedure 1. Read the Case. The first step is to get acquainted with the situation.Read through the case quickly, getting a general feel for what is going on.Who are the main players? What types of information are available to you? Go back and reread the case carefully, paying particular attention to case facts, figures,and diagrams.Be careful to separate symptoms and problems.Case writers will often flag importantissues byitalics,headings,or questions atthe end of the case. 1. Define the Problem. Put yourself in the place of the decision makers in the case (managers,investors,debtholders, banks,employees,etc.).What are the critical issues? Does one problem stand outas primary,with other problems secondaryor contingentupon it? Establish a time dimension to the problems;which problems demand immediate
- 2. action, and which are long-term or strategic in nature? What critical assumptions are being made by the decision makers in the case,and how do these assumptions influence their chosen strategies? Try to state the problems soas to identify (a) who musttake action, (b) why action mustbe taken, and (c) when should action be taken. 1. Build your Analysis. Gather the importantfacts and concepts in the case,and discard unimportantor fringe issues and data. Build a theme for your analysis,and establish the importance ofthe problems you have identified. Incorporate your knowledge ofcultural impacton the situation,financial analysis,accounting techniques,marketing methods,economics,and human behavior into your analysis.Puttheory to work in your paper, by using concepts from the readings and module overviews to analyze the problems and issues and explain why they require responses by management. 2. Develop Alternatives. Examine the alternative courses ofaction that are available to the firm. Make a listof the advantages and disadvantages ofeach.Don’tuse “straw-man” alternatives (those thatare patently unfeasible or undesirable).Develop a few well-reasoned responses thatcould solve the problems,and criticallyevaluate them. 1. Make a Recommendation. Based on your analysis ofalternative courses ofaction, choose the bestand recommend course of action.Be specific in your statements.How will your recommendation be implemented? Circle back through the case to identify possible points ofinconsistencybetween your recommendation and case facts.What potential problems mightcrop up? How will internal constituencies (e.g.,management,employees) and external constituencies (e.g., competitors,stockholders) react,and how will you handle their responses? Whatassumptions have you made in developing your recommendation? Please review Writing and Revising/ Editing the Case Analysis for additional information on structuring a case analysis. Deliverable: Case Write-Up The write-up mustinclude the following items: Title page containing case name and date Brief summaryof the business situation in the case Identification of problems or issues Analysis of the problems or issues including the nature of the problems,causes ofthe problems,constraints,and related theories (framework for your analysis) Listof alternatives for solving problems,including pros and cons ofeach alternative Your recommended alternative and clear reasoning for you decision Supporting spreadsheets or charts References Read this Example of Case Analysis Writing for an example of a case analysis reportfrom Ashford University. Since mostcases used in the class require a composite ofcareful thinking,conceptualization,quantitative analysis, and some form of decision making,your comments will be evaluated based on breadth and depth of your thought process demonstrated in your discussion.While you should putthe problem in a context, you should notmerely repeatcase facts. You will get credit for only meaningful and high qualityanalysis. Hutchison Whampoa Limited: The Capital Structure Decision Obtain the Hutchison Whampoa Case from Harvard Business Publishing Coursepack.After reading the case,you are expected to submita preliminarycase analysis report(progress report) atthe end of Module Five and a final case
- 3. analysis reportat the end of Module Ten. You are highly encouraged to utilize the Individual Case Analysis Questions forum to help you with this task.To help you with the analysis ofthis case,below are suggested questions for you to discuss on when analyzing it. Note that while these questions are helpful,your reports should notbe written to answer these questions butto provide a full analysis ofthe case. Suggested Questions 1. What kind of capital structure would you propose to Hutchison Whampoa in lightof its future needs and why? 2. What bond rating do you think Hutchison Whampoa will be able to obtain from Standard and Poor’s? 3. What are the debt financing options? Whyyou are for/againstthe Yankee bond option? 4. Assume Hutchison Whampoa will require $1 million USD offinancing in 1996. Assume thatnew equity can be raised at $48.8 a share and that a long-term debtissue will carryan interestcostof HIBOR plus 70 basis points (bps).How would an equity or debtissue impactHutchison’s financial position and performance? Format In 8-4 Final Project: Milestone Two: you will submita rough draft. The draft should contain the work from the progress report,reflecting the incorporation ofthe previous feedback.In addition,the identification and the evaluation of alternatives for solving problems as well as the recommended courses ofaction should be included in this rough draft. Be sure to provide convincing arguments,supporting information,and spreadsheetanalysis to supportyour views and recommendations.The draft should be 8–10 pages,notincluding tables,charts,and references. Final Project Rubric Requirements of submission: Written components ofprojects mustfollow these formatting guidelines when applicable:double spacing,12-pointTimes New Roman font,one-inch margins,and APA-style citations.Your case write-ups should be approximately8-10 pages long including charts and figures. Instructor Feedback: Students can find their feedback in the grade book as an attachment. Critical Elements Exemplary Proficient Needs Improvement Not Evident Identification of the Main Issues/ Problems Demonstrates a clear and deep understanding ofmain issues/problems in the case study (18-20) Demonstrates deep understanding ofmain issues/problems in the case study (16-17) Demonstrates limited understanding ofmain issues/problems in the case study (14-15) Demonstrate understandin issues/proble study (0-13) Analysis of the Issues/Problems Makes appropriate,insightful, and powerful connections between the issues/problems and the theory. Relevant financial analysis is applied properly (18-20) Makes appropriate and insightful connections between the issues/problems and the theory. Relevant financial analysis is applied (16-17) Makes appropriate but somewhatvague connections between the issues/problems and the theory. Inadequate financial analysis is applied (14-15) Makes little o between the and the theor financial ana (0-13)
- 4. Identification and Evaluation of Alternatives Identifies a comprehensive set of thoughtful alternatives.Pros and cons for alternatives are provided. Arguments are convincing,supported,and comprehensive (18-20) Identifies majorityof alternatives. Pros and cons for alternatives are provided.Most of the arguments are convincing and supported. May be missing a few pros and/or cons (16-17) Identifies few alternatives. Pros and cons for alternatives are provided.Arguments, however, are insufficiently convincing and supported (14-15) Identifies few alternatives. significantdi alternative pr (0-13) Recommendations Makes realistic,appropriate, and insightful recommendations clearly supported by the information presented and the theory from the chapter (18-20) Makes realistic and appropriate recommendations clearly supported by the information presented and the theory from the chapter (16-17) Makes realistic or appropriate recommendations supported by the information presented and the theory from the chapter (14-15) Makes realis recommenda supportfrom presented an the chapter (0-13) Writing (Mechanics/Citations) Writing demonstrates sophisticated clarity, conciseness,and correctness; includes thorough details and relevant data and information; extremely well-organized.Uses APA guidelines accuratelyand consistentlyto cite sources (18-20) Writing is accomplished in terms of clarity and conciseness and contains onlya few errors; includes sufficientdetails and relevant data and information; well-organized.Uses APA guidelines with minor violations to cite sources (16-17) Writing lacks clarity or conciseness and contains numerous errors;gives insufficientdetail and relevant data and information;lacks organization.Reflects incomplete knowledge ofAPA guidelines (14-15) Writing is unf or contains s detail and rel information;p Does notuse (0-13) Total: Comments: