Weighting – 100% of the marks for this module (please refer to the individual weightings per task).
This is an individual assignment of about 3,000 words.
The hand in date is:
The Paragon group of companies PLC is a FTSE250 company with £10 billion assets under management. Paragon specialises in loan origination, loan servicing and the acquisition of assets. It is the United Kingdom’s leading specialist lender.
The senior management of the Paragon group of companies has chosen to raise additional long-term debt in the form of a corporate bond (retail bond). The bond will be sold by authorised offerors in multiples of £100 FACE value. A minimum initial investment of £2,000 is required per application. The bonds will mature in January 2022, and pay a coupon rate of 6.125% in 6 monthly instalments.
They will be available on the order book for retail bonds on the London stock exchange (LSE).
The paragon group of companies is one of several FTSE 250 companies who have chosen to issue corporate debt. The supermarket Tesco PLC issued a retail corporate bond in 2012 to finance its launch into retail banking in the United Kingdom. You are currently an intern at Capstan, Peterston and Bennet ltd. Accountants specialising in providing comprehensive advice on gearing policies to companies. The company is experiencing an increase in the number of clients expressing an interest in corporate debt. As a result it has been decided to invite clients to attend a seminar to provide further information, a) You have been asked to produce a PowerPoint presentation together with notes to the slides which critically examines the benefits and risks to a company, of incorporating corporate debt into a an existing portfolio of equity and debt. (60%) Please note you will not be required to present the PowerPoint presentation
PLEASE NOTE THIS ASSESSEMENT IS NOT INTENED TO BE A CASE STUDY OF EITHER PARAGON OR TESCO. Each student will be expected to produce a PowerPoint presentation which is applicable to a wide audience and incorporate relevant theory, business models and empirical evidence considered necessary. (Reference can be made to either Paragon or Tesco as an aid to the evaluation). 公司,将公司债券纳入现有的投资组合的股票和债券。
(Please see over page for b)
b) In addition, the director acting as your supervisor whilst on internship has asked you provide a short report which is to be made available on the company website and suitable for investors. You have been asked to provide advice on how the investor can manage both risk and return when selecting the companies in whom to invest. ( including reference to forms of risk, ratio/yield calculations and CAPM) (40%) 此外,董事作为你的上司虽然在实习要求您提供一个简短的报告,将会提供在公司网站上,适合投资者。你已经被要求提供建议如何管理风险和回报投资者在选择投资的企业。(包括引用形式的风险,比/收益率计算和CAPM)(40%)
The University policy on cheating collusion and plagiarism will be applied to this piece of work.
Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report the following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive.
As part of your work you should explore the underlying theory behind the key areas of investigation that you identify and appropriately referenced comments and quotes to sources to demonstrate wider reading. Additionally, the inclusion of some practical/real world examples to act as support/explanation for your evaluative comments is encouraged. Numerical example for illustrative purposes may be of use but should not be the only element of the work; discussion and interpretation of models and concepts is also required.
With a word limit of about 3,000 you do not have a lot of room for long introductions so assume you are writing to