BM013-3.5-3 Corporate Finance Individual Assignment Page 1 of 4

Learning Outcomes Questions

1. Critically analyze and evaluate alternative sources of

long-term capital and the relationship to investing

decisions.

Assignment

2. Critically understand the complexities involved in

assessing and measuring business risk and the return on

investment.

Assignment

3. Apply a range of models in the process of organizational

valuation.

Assignment

Marks are awarded based on the following guidelines:

Grade Description of performance level

80%-100% There were mature and interesting points based on your research and reading.

Each point supported with valid explanation. Shows understanding of subject

matter. Adequate references given. No grammatical errors or spelling mistakes.

60% – 79% There were sufficient points raised with valid explanations provided. There is

adequate understanding of subject matter. Minor grammatical errors and

spelling mistakes.

40% – 59% No clear understanding of research subject. Insufficient points given and

explanations are unclear or not helpful in clarifying points. Not enough reference

given. Major grammatical and spelling mistakes.

Below 40% You did not show understanding of the subject matter. Points are off-topic and

do not tie back to research. No understanding of theories and concepts taught.

Not enough reference given. Numerous grammatical and spelling mistakes.

APU Level 3 Asia Pacific University of Technology and Innovation 201504

BM013-3.5-3 Corporate Finance Individual Assignment Page 2 of 4

The criteria below detail the areas, which will be taken into account when the assignment is

marked.

1. To address the subject satisfactorily, a typed format is mandatory. Pass assignments are

expected to be legible, tidy, well organized and written in clear understandable English.

2. High grades [70%, 75%, +80%] need to demonstrate sustained coherent analytical ability.

A systematic approach to analysis and evaluation is required for grades 60% to 85% - for

3. Grades at the higher end of the scale, integration and synthesis is a requirement. The

quality of the arguments used to develop and support prescriptions/recommendations are,

in our view, the essential test of integration.

4. Evidence of reading and some understanding of models and concepts are needed to

achieve a pass grade [50%]. Integration of theory and practice is expected for any grade

above 65%.

5. You are expected to clearly state any assumptions you make, and support statements and

theories by referencing to appropriate sources. [This is essential for higher grades but

does not necessarily prejudice a pass mark [50%] if it is missing].

6. As well as submitting a hard copy of your assignment you are also required to submit the

electronic version. Unless both, hard copy and electronic versions are provided it will not

be counted as submitted.

Attention will be paid to:

There must be proper referencing and citation. Harvard Referencing is a must. Citation must

include, apart from the normal details, the page number from where the issue for discussion has

been taken.

APU Level 3 Asia Pacific University of Technology and Innovation 201504

Assignment Assessment Criteria

BM013-3.5-3 Corporate Finance Individual Assignment Page 3 of 4

Question 1

Corporate ownership structure varies around the world. Historically, individuals have owned the

majority of shares in public corporations in the United States and some other countries. In

Germany however, banks or other large financial institutions own most of the stock in public

companies. In Japan the cross-shareholding patterns have been the trend. In some countries e.g.

India, Pakistan etc. ownership of some companies resides within a family.

You are required to evaluate agency issues in relation to different ownership structures as

mentioned above. Also explain generally the role a typical ownership structure plays to mitigate

agency problems.

[50 marks]

Question 2

Corporate Failure: Tragedy or Expected?

Conventional proposals to reform corporate governance based on the rational model of

decision making may be insufficient in preventing future corporate debacles. Typically

underestimated are the pressures from conflicts of interest and bias on reputational

intermediaries. Judgements and choices made by auditors during professional

engagements may not strictly adhere to the rational model of decision making. This is of

significance with regard to the gatekeeper function of auditors and relevant legislation

(Marnet, 2007)

Marnet, O (2007) History repeats itself: The failure of rational choice models in

corporate governance, Journal of Critical Perspective on Accounting 18, pp 191-210.

APU Level 3 Asia Pacific University of Technology and Innovation 201504

BM013-3.5-3 Corporate Finance Individual Assignment Page 4 of 4

Corporate failure had been discussed always. The initiation of regulatory and supervision being

the central factor to ensure empowerment play a key role in curbing the failure among corporate

firms which could result huge losses to the shareholders.

You are required to analyze the factors contributing to corporate failure globally (a special

reference to Malaysia would give additional marks]. Do you think it cause by tragedy or

otherwise?

[50 marks]

[Total marks = 100]

APU Level 3 Asia Pacific University of Technology and Innovation 201504