Word count- 3000-3200 words. Instructions: Assignment 2 3000 to 3200 words. Long term finance may be generated internally or externally by companies. Required: 1) Critically evaluate five different sources of external finance that are available to a public listed company. Identify and explain what considerations may be taken into account by the Board of Directors when choosing the type of financing to use. 2) Explain the term weighted average cost of capital (WACC). Critically evaluate the view that the WACC is affected by the long-term sources of finance employed by a listed company.

MARKING CRITERIA AND STUDENT FEEDBACK – Common Assessment Criteria (applied to all parts of the project) - 1. Research-informed Literature: Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions. Inserting your references (quality texts and published articles) into the appropriate places in the text. Listing these at the end of the report (Harvard Method) 2. Knowledge and Understanding of Subject: Extent of knowledge and understanding of concepts and underlying principles associated with the discipline. Demonstrating insights into selected academic concepts and models. The relevance of these in the context of the set questions.

3. Analysis: Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; organisation of ideas and evidence For the 5 methods of funding critically discussed. WACC and its link to the sources of finance. What types of risks are associated with the WACC? Illustrations to explain this may explain this further. 4. Practical Application and Deployment: Deployment of methods, materials, tools and techniques; application of concepts; formulation of innovative and creative solutions to solve problems. Applying the concepts/ models in order to provide valuable and meaningful solutions and make recommendations. 5. Skills for Professional Practice: Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation. Written in report style, Directed at your reader(s) and flows well throughout and overall Presentation.

Outstanding knowledge of research-informed literature embedded in the work. Outstanding selection of relevant and credible sources. High-level referencing skills consistently and professionally applied. Exceptional mastery of a complex and specialised area of knowledge and skills, with an exceptional critical awareness of current problems and/or new insights at the forefront of the field. A critical awareness of the ambiguities and limitations of knowledge. Exceptional critical evaluation of methodologies, current research and ideas and, here appropriate, proposes new hypotheses/ ideas. Evaluates and synthesises complex issues at a high level of mastery. Makes outstanding judgements and proposes highly convincing arguments in the absence of complete data. Highly persuasive conclusions. Work is of journal publishable quality.

Outstanding levels of application and deployment skills. Assimilation and development of cutting edge processes and techniques. Can communicate with an exceptionally high level of professionalism. Can work exceptionally well and professionally autonomously and within a team, showing advanced leadership skills. Work is exceptionally coherent, very fluent and is presented professionally.