5 hrs due- business finance essay

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M010LON GLOBAL FINANCIAL MARKET SEP-DEC 1920

COURSEWORK BRIEF AND CASE STUDY

1. Background

Please read the S&P Capital IQ Transaction Summary for Japan’s Softbank (TSE:9984)

takeover of the UK’s ARM Holdings (LSE:ARM) in 2016.

Perform the following tasks of analysis and write up your finding and research in a report

format, both Group Coursework 1, and/ Individual Coursework 2. You are encouraged to

conduct research on the effects of the news on share price and outline your analysis of the event.

This is an ongoing case of M&A. The study should emphasize the state of the play, valuation

and trading strategy going forward. Students are encouraged to take a forward-looking view on

the future of acquisition event.

2. Objectives

The assessment is made up of two parts with the weight and word count shown below.

• Coursework 1: (40%), Word Count: 1,500 Words

• Coursework 2: (60%), Word Count: 2,000 Words

Students are required to complete both parts

Coursework 1: Individual Report (40%)

This assignment is a Group coursework report based on a case study of Merger and

Acquisition (M&A) event based on the above case study of Softbank’s acquisition of ARM

Holdings. The purpose of the report is to develop relevant Excel templates to provide

valuation and interpret price impacts following the event.

• Conduct in-depth background research to enhance the analysis of the acquisition event. Such

research should demonstrate in-depth understanding on the working of the sector. You should

set up a timeline (see Section 3 below) to reflect the chronicle of events and key dates. (20%)

• Conduct comprehensive valuation on Softbank and ARM Holdings prior to the acquisition

announcement. Your valuation should use relevant valuation technique(s) to arrive at an

appropriately discounted present value (per share) for Softbank and ARM Holdings (40%)

• Evaluate the extent of price impacts on Softbank and ARM Holdings following the news

announcements on acquisition. Does the movement of share price reflect the insights from

Efficient Market Hypothesis (EMH)? (40%)

Coursework 2: Individual Report (60%)

This assignment is the form of an individual coursework report based on the same case study

albeit with a different focus on event analysis and trade. The purpose is to develop relevant

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Excel templates to conduct event studies to test market efficiency. Based on the result of event

studies, trading strategies and instruments are to be applied to exploit price

efficiency/inefficiency during the process of acquisition to arrive at appropriate conclusion and

recommendation for the deal.

• Conduct event analysis to test EMH and derive your trading profit from the event. An event

analysis template is provided separately based on Chapter 14 contents of Simon Benninga

textbook ‘Financial Modelling (4th edition)’. (40%)

• You are required to demonstrate trading strategies and instruments that would be

appropriate to exploit price efficiency/inefficiency during the process of acquisition. Your

analysis should forecast possible trading profit going forward until the appropriate cut-off

date. (40%)

• Conclusion and Recommendation. Conclude your analysis based on the above analysis and

recommend appropriate course of action for trading on this M&A event (20%)

• Research and originality (10%)

Research and originality award research and original thinking that go beyond standard

analysis and template to derive new insights. This is awarded based on your contribution to

research and originality.

3. Timeline

The announcement of the above event was 18 June 2016; your estimation window* should

run at least one year before the event announcement date.

*See Chapter 14 Simon Benninga’s textbook for the definition of ‘estimation window’.

4. Format and Weighting

The assessment is made up of two parts with the weight and word count shown below.

• Coursework 1: Individual Report (40%), Word Count: 1,500 Words

• Coursework 2: Individual Report (60%), Word Count: 2,000 Words

• Need to provide data and valuation result in Excel model as evidences

Your Excel model needs to be embedded within your submitted Word document.

Organize your findings in both Report format according to the weight presented in Section 2.

References and appendixes will not be included in the final word count.

Coursework Submission Deadline: See Moodle Submission Link

5. Key Learning Outcomes

• Demonstrate knowledge of the purpose and functions of global financial markets

• Analyse the role of financial market data in supporting business decisions

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• Critically evaluate the impact of the global financial markets on the business

environment

• Demonstrate the ability to analyse and present quantitative data to support an argument.

• Use information technology to analyse and communicate financial data

6. Late submission

Late submission will be marked at 0 but will allow a resit opportunity. No submission will be

recorded as ‘Absent’. Extensions will be in accordance with University policy.

7. Grades

You must check that all your coursework marks have been recorded accurately on Moodle

and notify your module leader if you believe a mistake has been made. All grades are

provisional until confirmed by the Subject Assessment Board. It is possible that notified

marks may be raised or lowered by this board. Students are encouraged to keep copies

(electronic) of all coursework submitted on this module.

8. Plagiarism

Students are advised to consult the University Regulations* and their course handbooks

regarding the penalties for and definition of plagiarism, which essentially is the deliberate and

substantial insertion in your own work of material from someone else e.g. a published source

such as a book or article, or simply another student’s piece of work, without acknowledging

the extent or source of the quotation.

*To view regulations use the University website.

Referral Resubmission of assignment, by the Faculty re-sit deadline (posted on the module

web when date confirmed).

Further information can be found on your module and course handbook.