Evaluate the key arguments for and against hedging

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Reference no: EM131301005

Read the case "Corporate Treasury Management - ZAPPLE PLC".

Coursework portfolio

2000 word limit (total) - Answer all questions in the context of Zapple

1. The treasurer of Zapple PLC is aware that the company is facing a number of foreign exchange rate risk and interest rate risks. You are required to evaluate the key arguments for and against hedging of the exchange and interest rate risks.

2. Zapple has decided to issue a long term bond with a maturity date of 2035. The company are looking to raise around £500m with a target coupon of 7%. The company has approached S&P for a rating. Explain and evaluate what factors will influence the rating of the planned bond.
It is expected that greater detail will be discussed around the following points: - Sovereign risk
- Strategic and business risk
- Management quality
- Financial factors
- Relationship with the credit rating agency
- Bond specific issues

Coursework Hints and tips:-

The word limit is 2000 excluding any appendices. The standard university rules apply here so there is a 10% leeway either way.
Ensure that all assignments are written in a report format.
Support your arguments with a wide range of up to date /appropriate literature and it will not be possible to gain a pass here unless you demonstrate wide and relevant reading.
Any further supporting evidence should be put into Appendix.
Ensure you reference correctly.

Attachment:- Case- ZAPPLE PLC-.rar

Reference no: EM131301005

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