BA7564 Corporate Finance – Coursework The module assignment is based on the material covered in the Corporate Finance elective, which in turn builds on the knowledge acquired in the Business and Financial Environment module. The assignment requires you to analyse the case of a proposed merger between the Repsol and YPF Company. Given the data provided in the case study, you should write a report to discuss and explain the following issues: 1. An analysis of the strategic position of the two companies before the acquisition, their alternative strategic options and the rationale for the acquisition. (30 marks) 2. What YPF is worth as an independent company and what is its potential value if it is acquired by Repsol? On that basis what is the reasonable price that Repsol should offer to acquire YPF and should Repsol pay for the acquisition by offering cash, stock or a mix method of payment? (40 marks) 3. What are the key factors that might affect the level of success of the proposed acquisition and the prospects as well as the threats of the proposed deal? (30 marks) Your work should be precise and focused on the main points in question. Your discussion should be clear and your arguments well supported with references to the theoretical principles, academic and financial literature and with evidence from appropriately referenced publically available sources of data and information. All calculations and models should be included in the main body of the report. You can use appendices, if you need to present data but they should not be used as extension of the main document beyond the set limit and they should not include discussion and calculations and discussion. Discussion and material that has to be included in the main body of the report but has been placed in appendices will not be considered. You should use Harvard referencing style to properly acknowledge and report all data and information used and provides a complete list of references. Your report should be brief and concise and should not exceed 12 pages including diagrams, tables and your list of references but excluding the appendices. You will be assessed on your ability to properly summarise your findings and present your arguments. You should state your actual word count on the title page of the report. Although you are required to do calculations and use relevant assumptions the focus should be how these will provide the basis for critical commentary and discussion. More important is to demonstrate your ability to apply your knowledge and understanding about the different methods than the precision of your estimates. It is important to make clear your own judgement and opinion and to draw reasonable conclusions but you should justify, where possible, your choices and need to acknowledge the alternatives. Using mainly academic references and other sources for data and information, and properly acknowledging them, give credibility to your arguments and discussion. â€ƒ Assessment Criteria The following list of grade criteria are provided to provide an indication of the standards required to obtain a distinction level grade. The criteria are not meant to be exhaustive or proscriptive. Criteria Excellent (70 +) Quality of Writing The writing style follows academic conventions; it is precise, concise, rigorous, clear and cogent. Good grammar and spelling. Structure and Organisation of Content The report follows a logical structure that is clear to the reader from the outset. The introduction sets out the purpose(s) clearly, together with a clear indication of the way in which the rest of the report is organised. The report conveys the content in a clear and logical manner and incorporates a critical reflection of the techniques and other aspects as set out in the assignment requirements. Presentation The presentation is clean and simple and avoids unnecessary elaboration (changes of colours, fonts, and the use of contrived layouts). Use is made of diagrams and tables when appropriate and these are referred to and add to the readers understanding of the text. The report references sources in an appropriate way â€“ according to the Harvard referencing format. Analysis The report has extensive analytical content, which makes use of analytical techniques such as sensitivity analysis and uses comparisons, contrasts, differences, similarities, arguments and counterarguments in order to advance the critical analysis sections. The report uses evidence and references to back propositions and assertions where appropriate. There is evidence of higher analytical skills such as evaluation and judgement. The report uses synthesis â€“ the combination of separate ideas, concepts and theories in order to produce a broader set of ideas that can explain phenomena better than any of the separate parts can do alone. Arguments conveyed throughout the paper are presented in a logical fashion. Arguments set out are in keeping with the theoretical and analytical framework. Knowledge and understanding The report demonstrates an extensive knowledge of theory, concepts, principles and empirical evidence and demonstrates the application of the material in an appropriate way. Research and Background Reading The report demonstrates a broad range of reading beyond the confines of the textbook material; uses materials from a variety of sources to good effect in supporting arguments, propositions and conclusions and demonstrates an appropriate and reasoned investigation of data sources.