FIN 3086BEF Financial Management
Assignment
Due date: 30 October 2025
Weighting: 20% of the total marks for this course
Important note
i.
Students are expected to follow the APA Style (7th edition) created by the American
Psychological Association when citing sources in their assignments. A list of references
should be included at the end of each assignment.
ii.
Students must use Microsoft Word to prepare the assignments and should submit their
assignments via the Online Learning Environment (OLE). Unless otherwise specified, all
assignments should be submitted in Microsoft Word format. There is no need to submit the
hard copy of the assignment.
iii.
As a mechanism to maintain academic integrity, assignments uploaded on the OLE will
automatically be sent to Turnitin for plagiarism checking before final submission. Please
refer to the quick start guide for submission of assignments to Turnitin on the OLE.
iv.
Assignments must be submitted to the OLE by 5:00 pm on the submission due date. 10%
of the marks awarded to the assignment will be deducted for each calendar day overdue
until the soft copy of the assignment is submitted.
This assignment is an individual project in which a student is required to critically analyse the
capital structure of a publicly listed company. Capital structure refers to the mix of debt and equity
financing used by a firm to fund its operations and growth. The goal is to apply theoretical concepts
to real-world financial data, evaluate strategic decisions, and draw informed conclusions. This
assignment is used mainly to assess learning outcomes 1 and 3 of this course. You are required to
submit a written report on the due date of this assignment.
Instructions:
• Select one publicly listed company in Hong Kong. The company must have been publicly
traded for at least five years and should not be a financial institution (e.g., bank or insurance
company) to avoid sector-specific complexities.
• Use the latest available financial data as of the most recent fiscal year-end (e.g., 2024 or
2025, depending on reporting cycles). Sources may include the company's annual report,
quarterly filings, databases like Yahoo Finance, Bloomberg, or company websites. Ensure
all data is cited properly using APA referencing style.
• Your submission should be a written report of no more than 1,000 words (excluding
references and appendices). Include relevant tables, charts, and calculations to support your
analysis.Question 1 (40 marks)
Provide a detailed overview of the company's current capital structure. Estimate the weighted
average cost of capital (WACC) of the company using the latest financial statement data. Present
capital structure weights of the company in a table and discuss any notable trends over the past
three years.
Question 2 (30 marks)
Analyse the internal and external factors that have shaped the company's capital structure. Drawing
on financial theories, explain why the company might have chosen its current mix of debt and
equity.
Question 3 (30 marks)
Evaluate the implications of the company's capital structure on its financial risk, cost of capital,
and overall firm value. If you were a financial advisor, what recommendations would you make to
optimise the structure? Support your suggestions with quantitative estimates, such as how a change
in leverage might affect the WACC, and justify them in the context of current economic conditions
as of 2025.
[End of the Assignment]
