Global Finance Coursework Assignment (Online)
Session 2022/23 Trimester 1
This assignment is worth 90% of your total final mark.
There are two parts in this written assignment, Part A is worth 45% and Part B
is worth 45%.
Part A – Suppose you are a Chief Financial Officer (CFO) of a UK based listed
company. The company is currently trading at £10 per share and have 10 million
shares in issue. The total market value of the issued share capital of the company is
£100 million. You have been requested to write a report to the board of directors on
how you aim to raise an additional £50 million to fund the next development stage in
the international project.
Part B – This additional funding will allow the company to expand globally and do
business in the markets of numerous countries where payment can be made using the
local currency. The directors are conservative in their attitude to risk. You have been
requested to provide a report to the directors critically evaluating alternative derivatives
including forwards, futures, options and swaps that are available in the market in order
to minimise the risk with respect to payment in international currencies.
Note for Part A:
For the report in Part A, you should critically review the advantages and disadvantages
of the main funding options and have appropriate academic references to strengthen
your discussions. In your analysis, you should review the different types of financing
choices available in the equity and debt markets, and discuss how beneficial interest
rate swaps are in reducing financing costs and eliminating interest-rate risk.
Note for Part B:
For the report in Part B, you should critically discuss and compare the use of
derivatives including forwards, futures, options and swaps to hedge Foreign Exchange
(FX) Risk. With reference to appropriate academic references, discussions must
how it works in mitigating FX risk.
advantages and disadvantages of each type of derivative in managing FX risk.
Information on the written assessment:
The assessment for this module involves two components: a written assignment
and the end of unit tests. The written assignment is worth 90% of the overall grade
and the end of unit tests is worth 10%. The overall grade for this module is
calculated from the sum of weighted component grades.
The written assignment is worth 90% of your overall mark. It is expected that the
assignment will apply the concepts and approaches developed in the text and credit
will be given for evidence of wider reading.
You are expected to link the reports for Parts A and B together in the form of a
The essay must be around 4,000 words (a minimum word count of 3,800 and a
maximum word count of 4,200) excluding the references, tables, figures and notes.
You must provide a word count. Parts A and B are expected to be equally weighted,
i.e., around 2,000 words for each part.
You should also refer to further references from a variety of academic sources in
relation to this topic.
All references must be correctly cited following the APA 7th referencing system.
≥D2 All the required elements have been well
addressed; appropriate and clear use of
references; well supported argument with
evidence; appropriate use of all the
relevant information; Good presentation
of arguments; Substantial evidence of
D1-P5 All the required elements have been fully
addressed; clear use of references;
argument are supported by evidence;
appropriate use of all the relevant
information; Good presentation of
P4-P3 All the required elements have been
addressed; some reference used;
argument are supported by some relevant
evidence; there is relevant information but
not fully discussed;
P2-P1 At most one element has not been
addressed; little reference used; some
relevant information used; argument is
not well supported by relevant evidence;
F1 Little reference used; no information
used; argument are not supported by
≤F2 No reference used; no information used;
argument is not supported by relevant