Posted: July 11th, 2015

Business Finance

Business Finance

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ASSIGNMENT INSTRUCTIONS
Module Title: Business Finance
Module Code: Moo003319 Level: 4 – Undergraduate
Academic Year: 2014/15 ‘ “‘ ‘ ” ‘ Semester: 2 – January 2015
Module Leader: Turn Spencer
Instructions: Attempt all three tasks shown below
Word Limit: 3,000 words
Written assignments must not exceed the specified maximum number of words. All
assignments which do so will be penalised. The penalty will be the deduction of marks at
the Marker’s judgement. Assignments will not be accepted without a word count on the
cover sheet.
Submission Date: This assignment must be received no in; man 5m on 23″‘ Jug n15
You must submit your enigma; using Turnitin software and obtain a aggigt
Work cannot be uploaded on Turnitln after the stated date will receive a mark of 0
unless an extension has been approved In advance of the
deadline.
Requests for short-tenn extensions will only be considered in the case of illness or
other cause considered valid by the Student Adviser. These must normally be
received and agreed by Student Adviser In writing at least twenty four hours prior to
the deadline.
Please refer to the Academic Regulations or your Student Handbook for full details.
Further details: This assignment must be completed lndivlduslly..
This assignment must be attached to a completed University Assignment Cover Sheet You should
obtain & keep your ‘l‘umiiin Assignment Receipt after submission.
Any attachments must be marked with your SID numberis) and attached to your
assignment before submission.
M‘-
Page 1 of 3

TasIr1
ProduceereporttotheownersofCagooClothingplc(animaginaryretaiierofclotl’les).whldt
carries out an investment appraisal of a possible project to purchase a new shop in London for £7
million.
Thefollowingirrtormationisrelevant: Aer“
o Al variables should be estimated and ius’tiiied ( industry data can help with this – recent
annual reports lorNext pic are included on the LCA online campus as an example of
information that may be useful in estimating variables.)
0 Sources of finance and cost cl «gal sho_ug be considered and those selected should be
1mm“ V emit ‘ rm w
o Taxei’lecteshouidbeignored. 74c? 4 A r
o Sensitivity analysis should be considered.
o Assunethe shop will be sold after 10 years.
Remember the purpose of this report is to demonstrate your knowledge and ability to apply
investment appraisal techniques and use other accounting information. Thus detailed I accurate
figures are not essential.
Marks for this task: 50 marks
Taelt 2
Fine Feet is a retailer of shoes. The average price for a shoe sold is £40 and although the sales
mix is planned to remeinthe same. thereis a 5% price mausoplanned from october2015.

Task 3:
Growright is an expanring manufacturing company. The managing director wrongly believes that
retainedeamings shoddarways bemdastfnpflmsoucaoffinmoeformecompanyasshe
believes there is no 0031 for these funds. ‘T‘hefinanoe manager of the company is finding R difficuIt
to exptain why this is not true.
Required:
a) Describe the advantages and disadvantages for relying on ntaInod earnings as a source
of hands. (5 marks)
Merlficafly mmmrsmdfimmumammwmmings.
(15 mrks)
Total Marks for this task: 20 marks
(END OF PAPER)
Pa e 3 of 3