APC308 Financial Management Individual assignment Weighting – 100% of the marks for this module This is an individual assignment of 3,000 words. (+ or – 10%) The hand in date is: Friday 17th July 2015 Submission to be made electronically in PDF .doc or .dox format to Jira online submission system Requirements: This assignment is in TWO parts, with each part carrying a maximum mark of 50%. Part A Critically evaluate and analyse the differing ways in which the shareholders of a company can encourage its managers to act in a way that is consistent with the objective of maximization of shareholder wealth. In this section students should demonstrate knowledge, understanding, and an ability to critically evaluate the importance of agency theory, and the role it plays within financial management. The response should draw upon the differing techniques that can be used by shareholders to reduce the agency problem that is faced within many businesses. A critical evaluation of relevant academic literature should be performed, providing clear evidence of wider reading within this topical area of research, rather than simply describing the core concepts. Attempting to evaluate within the context of real-life examples where shareholders have actively attempted to address agency problems would assist in developing the depth of response offered. (50%) Part B In practice financial managers use a variety of differing investment appraisal techniques upon assessing the viability of potential capital investment projects. Critically compare and contrast two investment appraisal techniques, one of which must be a discounted cash flow technique that would assist within the financial management decision-making process. In this section students should demonstrate knowledge and understanding of two investment appraisal techniques used by financial managers, how they can inform future projects, what limits their ability to guide investment, and which technique you would prefer (with reasons). The response should demonstrate evidence of wider reading and application of the chosen techniques within a real-life business context, supported through relevant empirical research. Real-life examples can be drawn from differing countries, industries and individual businesses, clearly identifying whether the investment appraisal techniques chosen are applied in practice. The inclusion of relevant numerical examples to develop the response further would be advantageous although should not form the main thrust of the work. (50%) The University policy on cheating collusion and plagiarism will be applied to this piece of work.