Capital structure
Capital structure
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Business School Coursework
Module Title Current Issues in Financial Management (HKU)
Module Code 601509
Coursework Element Assignment
Module Leader Dr Jian Wang
Word Count 2,500 (maximum)
First Sit or Resit? First sit
Submission Date 8 July 2022
Aim
The aim of this assignment question is essentially one of investigation and analysis.
The assignment question seeks to facilitate an application of contemporary financial
management theory/issues within an empirical perspective.
Important information:
i) This assignment contributes 50% of the module assessment.
ii) This assignment will primarily address the following learning outcomes:
Describe and critically evaluate the overall relationship between the
chosen topics of study(L02)
Critically assess the political nature and socio-economic influence of
financial information(L05)
Explain and evaluate recent developments in understanding the
pathology of corporate failure(L06)
Assessment of the different types of risk and the management of
these including hedging and other exposure minimising
techniques(L08)
iii) Word limit: maximum 2,500 words (excluding appendices and references).
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Coursework topic: Capital Structure
Instructions;
1. Select a company listed on the Hong Kong Stock Exchange
2. You must use the most recent published reports and accounts. Good
answers will probably make use of further accounts and stock market
data.
Requirements / Questions
1. Describe the capital structure of the company and how this differs from
financial structure. Explain whether capital structure has changed over time.
[20 marks]
2. Making reference to appropriate financial theories explain whether you
believe the capital structure of the company to be appropriate?
[40 marks]
3. Discuss the possible costs, risks and benefits of company changing its capital
structure.
[40 marks]
Note:
The marks awarded for the assignment are:
Assessment Criteria:
a: description of capital structure
b: critical evaluation/review
c: academic support given to evaluation/review
d: conclusion based on evaluation/review
e: presentation and structure
For the assessment of this assignment the following general criteria will be used:
For a mark of 70% and above:
The discussion provides an exceptional account of the capital structure of the
company selected and illustrates competence and understanding together with
creativity and originality. The discussion also arrives at a considered and balanced
conclusion. Relevant influences/applicable theories and empirical works are explored
with the debate providing both an analytical and critical exposition. The discussion
shows comprehensive evidence of wide reading/research illustrated throughout the
discussion, with relevant referencing to appropriate authority.
For a mark of 60% – 69%:
The discussion illustrates a thorough and competent understanding of the capital
structure of the company selected. A competent analytical approach is taken in the
debate, and selected theories/techniques/existing empirical results/methodologies
are explored within the context of a balanced and well-presented discussion. There is
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also relevant referencing to appropriate authority, with the discussion containing no
significant errors and/or omissions.
For a mark of 50% – 59%:
The discussion is mainly descriptive and lacks any critical insight. Identified
influences related to the capital structure of the company selected are accepted with
little criticism, and little or no attempt is made to provide a critique of applicable
theories, techniques, and/or methodologies. Although relevant theories, techniques,
and/or methodologies are discussed, illustrating some understanding of main issues,
the debate is lacking in analysis and coverage. Reading and research whilst
balanced and thorough is nonetheless limited.
For a mark of 40% – 49%:
The discussion of provides an adequate coverage of the capital structure of the
company selected. However there is limited evidence of understanding. The essay is
mainly descriptive with no critical comment provided. There is also little evidence of
reading/research.
For a mark below 40%
The discussion fails to provide an adequate account of any of the capital structure of
the company selected. There is little evidence of understanding with little or no
evidence of reading/research. Little attempt has been made to explore contemporary
financial management theory/issues within an empirical perspective.
Academic Dishonesty and Plagiarism
All work that is submitted for assessment must be your own work. Academic dishonesty
is an attempt to engage in deception or fraud and will be penalised accordingly. It is a
very serious offence. It is important that you have read and thoroughly understood the
section entitled ‘Plagiarism’ in the ‘Hull University Business School Programme
Handbook’ and that you have read and understood the ‘Code of Practice on the Use
of Unfair Means’ which is published on the University of Hull website.
