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Doc.

No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

RICS School of Built Environment


Assignment Handout

Program Name MBA (RE&UI, CM, CEQS)

Course name and Code REAL 613 Financial Management for Built Environment

Name of Course faculty(s) Prof. (Dr.) Amit Kumar, Prof. Tushar Jindal

Type of course work Group Project and Presentation

Assessment weightage 15%


th
Submission date 15 March 2019

Modules 1, 2, 3, 4

Aim of the course work To be able to understand and analyze the leverage, capital
structure decisions of a listed company

Learning outcome tested  Understanding the different components of capital


structure
 Analyzing and interpreting the cost of capital, WACC
 Analyzing and applying the concept of beta, CAPM
 Interpreting the optimal capital structure of the firm
 Developing and designing optimum capital structure for
the company that increases value of the shareholders

Modules tested 1, 3, 4

1. Knowledge and understanding of the topic

This is the factual foundation of the assignment. The essential facts should be accurate and broad
enough in their scope to allow further application.

2. Application and analysis of the topic (subject specific Skill)

This is the way in which you analyze/ examine the factual information and how you interpret this
information to add value to your answer (this could be in the form of conclusions, solutions,
recommendations, etc.).

3. The structure in terms of logic and coherence

Submissions should have a clear start and a clear end. Information within submissions should also be
logical and well grouped.

4. The use of relevant work examples and/or examples gained from further reading
Doc. No: RICS-SBE/001/SOC/S005/R01
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Suggestions for further reading are contained within the course work and indicated at the end of the
course work. These reading lists are not exhaustive and candidates are encouraged to read further
and reference at the end of the course work using Harvard style of referencing.

Please note all assignments shall subject to plagiarism software checks, through “TURNITIN” or
any other equivalent software.

Plagiarism

“Plagiarism is defined as presenting another person’s work as one’s own work. Presentation includes
copying or reproducing it without the acknowledgement of the source.”

Plagiarism involves copying of phrases, clauses, sentences, paragraphs or longer extracts from
published or unpublished work (including from the Internet) that exceeds the boundaries of the
legitimate cooperation without acknowledgement of the source. Plagiarism could be intentional
(dishonest plagiarism) or non-intentional (negligent plagiarism).

This definition also applies for figures and figure legends and for tables and table legends which you
copy into your text.”

It is mandatory that each course work shall be checked for plagiarism through Turnitin or similar
software before submission. The content which is based on existing published work must come from
properly quoted material and from the references cited section. After checking the accuracy of the
citations and references of such content the plagiarism presentation should not return similarity index
of more than 15% in any circumstance. However, if the matching text is one continuous block, the
index of 15% could shall be considered plagiarism. Any presentation with higher than this percentage
matching must be explained by the student. The details of copy rights, professional ethics are given in
Plagiarism Prevention Policy of the University.
Quotations
When using quotations from books, websites or journal articles you should cite the author and the
year of publication then use the quote in quotation marks.

Paraphrasing
Paraphrasing is where you encapsulate another person’s original idea, argument or conclusion in your
own words. It is still necessary to attribute those ideas to the author, and you can do this by using the
formatting outlined above for direct quotations, taking care to include the author’s surname and the
year of publication.

Collaboration
We acknowledge that you may undertake joint study with colleagues or as part of a formal training
programme. However, working with another person to write assignments is not acceptable. Your
answers must be your own and in your own words.

Referencing
You may detail the style of referencing here as per RICS SBE

Instructions

1. Plagiarism is a serious offence. In case of any plagiarism detected, penalty will be imposed
leading to zero mark.
2. Course work and presentations should be solved by the individual/group.
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3. Course work and presentations should be submitted on time and submission after deadline
will be marked zero.
4. Name, student identification and title of the course work to be written clearly and legibly

Grading of Course work

Qualitative
Performance description
Value

 Clearly demonstrates a highly creative, critical and thought- provoking


understanding of the topic.
 Novel and complex problems are solved with reference to theory and
practice.
 Provides clear evidence of originality and independence of thought and
with an exceptional ability to develop highly systematic and logical or
80% and Above
insightful argument, solution or evaluation.
(Outstanding)
 Demonstrates exceptional ability in the appropriate use of the relevant
literature, theory, methodologies, practices, tools, techniques etc., to
analyze and synthesize the given problem.
 Shows an exceptionally high level of clarity, focus and strength in
communication.
 The writing perfectly accomplishes the objectives of the assignment.
 Clearly demonstrates a persuasive, critical and thorough understanding of
the topic.
 Some evidence of novel and complex problems solved with reference to
theory and practice.
 Provides evidence of independence of thought and clearly demonstrates
75 – 79% the ability to develop a highly systematic and logical or Insightful
(Excellent) argument, solution or evaluation of the problem.
 Demonstrates excellence in the appropriate use of the relevant literature,
theory, methodologies, practices, tools, techniques etc., to analyze and
synthesize the given problem.
 Shows a high level of clarity, focus and strength in communication.
 The writing perfectly accomplishes the objectives of the assignment.
 Clearly demonstrates a well-developed, critical and comprehensive
understanding of the topic.
 Provides some evidence of independence of thought and clearly
demonstrates the ability to develop a systematic and logical or insightful
argument, solution or evaluation of the given problem.
68 – 74%
 Demonstrates a high degree of competence in the appropriate use of the
(Good)
relevant literature, theory, methodologies, practices, tools, techniques,
etc., to analyze and synthesize the given problem.
 Shows clarity, focus and strength in communication
 Accomplishes the goals of the assignment with an overall effective
approach.
Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

 Demonstrates a systematic and substantial understanding of the topic.


 Demonstrates the ability to develop a systematic argument or solution to
the given problem.
60 – 67%
 Demonstrates a significant degree of competence in the appropriate use
(Above
of the relevant literature, theory, methodologies, practices, tools,
Average)
techniques etc., to analyze and synthesize the given problem.
 Provides evidence of clarity and focus in communication.
 Minimally accomplishes the goals of the assignment.

 Provides evidence of a systematic understanding of the key aspects of the


topic.
 Demonstrates the ability to present a sufficiently structured argument or
solution to the given problem.
52 – 59%
 Demonstrates an acceptable degree of competence in the appropriate use
(Average)
of the relevant literature, theory, methodologies, practices, tools,
techniques etc., to analyze and synthesize the given problem
 Provides evidence of effective communication.
 Minimally accomplishes majority of the goals of the assignment.

 Provides evidence of some understanding of key aspects of the topic and


some ability to present an appropriate argument or solution to the given
problem.
45 -51%  Demonstrates some competence in the appropriate use of the relevant
(Satisfactory) literature, theory, methodologies, practices, tools, techniques, etc. to
analyze and synthesize the given problem.
 Provides some evidence of effective communication.
 Minimally accomplishes majority of the goals of the assignment
 Demonstrates limited competence in the appropriate use of the relevant
literature, theory, methodologies, practices, tools, techniques, etc. to
40 – 44%
analyze and synthesize the given problem.
(Border Line)
 Provides limited evidence of effective communication.
 Fails to accomplish majority of the goals of the assignment
Less than 40%
Work that is unacceptable. Erroneous/wrong, missing, extremely
(Fail)

Name and Signature of Course Coordinator/ Course faculty

Dr. Amit Kumar, Mr. Tushar Jindal


Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

Group Project and Presentation


Description This document describes best-practices for your group presentation.

Student Learning Outcomes:

 Understanding the different components of capital structure


 Analyzing and interpreting the cost of capital, WACC
 Analyzing and applying the concept of beta, CAPM
 Interpreting the optimal capital structure of the firm

Note: All the above mentioned SLOs are in line with the overall SLOs of the course.

Methodology:

 Collect 3 years data for the assigned companies.


 Find the company's beta in the last 5 years on monthly share prices data.
 Find the annual market return for BSE 100 or Sensex (whichever is applicable), and
average the returns
 Deduct the yearly T-bills rate from the market return to find average market risk
premium (i.e. Rm -Rf)
 Find the cost of equity with CAPM equation.
 Find the company's financial expenses and divide it on the interest-paying liabilities
(i.e. exclude accounts payable, wages payable, etc). This will help you to identify the
cost of debt if not provided explicitly.
 Find the tax rate (divide tax expense on net income before taxes).
 Find the cost of debt after taxes (1-Tax)*cost of debt
 Assume that interest rates increase by 5% with every 10% increase in debt.
 Find the average net income and assume that this net income will remain constant
forever.

General Consideration

Compose clear and concise presentation, so that your work is shown explicitly.

 Use a layout that explicitly shows what you wanted to say.


 Use tables, figures, and graphs to clarify your idea.
 Read your presentation and make sure that it is easily understandable.
 Run a spell checker before submission to fix the misspellings.

Format

1. Following details should be mentioned on the first page:

a) Mention Group number, e.g., G-01,


b) include names and enrolment numbers of your group members,
Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

c) Include page numbers.


2. File format: PPT

Table of Contents

1. Introduction (Background of the company)

2. Cost of capital

3. Analysis of Capital Structure

4. Summary and Conclusions

5. References

Description:

Consider yourself a financial advisor to a public listed company. You have been assigned a
role to advise the company on its capital structure. You are required to:

a) Find the value of debt, Equity and Weighted Average Cost of Capital. (50% of Marks)
b) Find the optimal capital structure where value of the firm is maximized. (50% of Marks)

The findings of the project is required to be presented in the form of Power Point Presentation.
It should include all charts and tables necessary for analysis, findings and conclusion.

Coverage of Presentation:

 Company's beta in the last 5 years on monthly share prices data.


 Annual market return for BSE 100 or Sensex (whichever is applicable), and average it
 Cost of equity with CAPM equation.
 Cost of debt after taxes (1-Tax)*cost of debt
 Determine Weighted Average Cost of Capital as per the composition of Cost and Debt.
 Identify the current capital structure of the firm.
 Compare Cost of Debt and Equity.
 Illustrate the changes in value of the firm with proposed changes in Debt and Equity
composition.
 Optimal capital structure where value of the firm is maximized.
Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

Doc. No: RICS-SBE/S/002/002


Revised On: 27-09-2018

STANDARD RUBRIC FOR EVALUATION OF PRESENTATIONS


Assignment Name_______________________________________________________________

Course Name/ Code_____________________________________________________________

Date ___________________________________Sem/ Sec/ Group/ Team ______________________

Student Names/Enrolment Number

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

Marking Criteria Poor Fair Satisfactory Good Excellent


Academic Content
(Quality of Content, Quality of Argument, Presentation
structure and flow)

Weightage: Marks
Presentation Skills (Body language, communication
skills, clarity and audibility, team work)

Weightage: Marks
Knowledge of the topic (Response to questions,
Research and Referencing)

Weightage: Marks

Marks for classroom presentation _____________________

Feedback: ______________________________________________________________________________________

_______________________________________________________________________________________________

The presentation has been checked for plagiarism. Yes No

Similarity index is less than 15%. Yes No

Total marks_____________________

Signature of the Course Faculty


Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

GROUP SUBMISSION – ASSESSMENT GRID

Grade Qualitative Performance description


Value of Grade
 Clearly demonstrates a highly creative, critical and thought- provoking
understanding of the topic.
 Novel and complex problems are solved with reference to theory and
practice.
 Provides clear evidence of originality and independence of thought and
with an exceptional ability to develop highly systematic and logical or
insightful argument, solution or evaluation.
80% and Above  Demonstrates exceptional ability in the appropriate use of the relevant
A+
(Outstanding) literature, theory, methodologies, practices, tools, techniques etc., to
analyze and synthesize the given problem.
 Shows an exceptionally high level of clarity, focus and strength in
communication.
 The writing perfectly accomplishes the objectives of the assignment.
A 75 – 79%  Clearly demonstrates a persuasive, critical and thorough
(Excellent) understanding of the topic.
 Some evidence of novel and complex problems solved with reference to
theory and practice.
 Provides evidence of independence of thought and clearly demonstrates
the ability to develop a highly systematic and logical or Insightful
argument, solution or evaluation of the problem.
 Demonstrates excellence in the appropriate use of the relevant literature,
theory, methodologies, practices, tools, techniques etc., to analyze and
synthesize the given problem.
 Shows a high level of clarity, focus and strength in
communication.
 The writing perfectly accomplishes the objectives of the assignment.
 Clearly demonstrates a well-developed, critical and
comprehensive understanding of the topic.
 Provides some evidence of independence of thought and clearly
demonstrates the ability to develop a systematic and logical or insightful
argument, solution or evaluation of the given problem.
 Demonstrates a high degree of competence in the appropriate use of the
A- 68 – 74%
relevant literature, theory, methodologies, practices, tools, techniques, etc.,
(Very Good)
to analyze and synthesize the given problem.
 Shows clarity, focus and strength in communication
 Accomplishes the goals of the assignment with an overall effective
approach.
 Demonstrates a systematic and substantial understanding of the topic.
 Demonstrates the ability to develop a systematic argument or solution to
the given problem.
 Demonstrates a significant degree of competence in the appropriate use of
B+ 60 – 67% the relevant literature, theory, methodologies, practices, tools, techniques
(Good) etc., to analyze and synthesize the given problem.
 Provides evidence of clarity and focus in communication.
 Minimally accomplishes the goals of the assignment.
Doc. No: RICS-SBE/001/SOC/S005/R01
Revised On: 30-11-2018

 Provides evidence of a systematic understanding of the key aspects of


the topic.
 Demonstrates the ability to present a sufficiently structured argument
or solution to the given problem.
 Demonstrates an acceptable degree of competence in the appropriate use of
B 52 – 59% the relevant literature, theory, methodologies, practices, tools, techniques
(Above Average) etc., to analyze and synthesize the given problem
 Provides evidence of effective communication.
 Minimally accomplishes majority of the goals of the assignment.

 Provides evidence of some understanding of key aspects of the topic and


B- 45 -51%
(Average) some ability to present an appropriate argument or solution to the given
problem.
 Demonstrates some competence in the appropriate use of the relevant
literature, theory, methodologies, practices, tools, techniques, etc. to
analyze and synthesize the given problem.
 Provides some evidence of effective communication.
 Minimally accomplishes majority of the goals of the assignment

 Provides evidence of sufficient understanding of key aspects of the topic and


adequate ability to present an appropriate argument or solution to the given
problem.
 Demonstrates satisfactory competence in the appropriate use of the relevant
C+ 40 – 44% literature, theory, methodologies, practices, tools, techniques, etc. to analyze
(Satisfactory) and synthesize the given problem.
 Provides some evidence of effective communication.
 Satisfactory accomplishes majority of the goals of the assignment

 Provides incomplete understanding of key aspects of the topic and


inadequate ability to present an appropriate argument or solution to the
given problem.
 Demonstrates limited competence in the appropriate use of the relevant
C 35 – 39% literature, theory, methodologies, practices, tools, techniques, etc. to
(Border Line) analyze and synthesize the given problem.
 Provides limited evidence of effective communication.
 Satisfactory accomplishes majority of the goals of the assignment
 Fails to accomplish majority of the goals of the assignment

F Less than 35  Work that is unacceptable. Erroneous/wrong, missing, extremely limited,


(Fail) inappropriate, insufficient, incoherent, unstructured

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