CORPORATE FINANCE (UKFF 3013)

JANUARY 2024 TRIMESTER

TUTORIAL 1
Discuss Course Plan and Assignment

ACADEMIC YEAR: 2023/2024

BACHELOR OF ACCOUNTING (HONOURS)

YEAR 4

UKFF3013 CORPORATE FINANCE

ASSIGNMENT

GROUP ASSIGNMENT BRIEF

TASK 1: FORMING AND FINALIZING GROUP FOR ASSIGNMENT

Form your assignment groups within the same tutorial group (a group of FIVE (5) students) using
the link to the Google Sheet: t.ly/78iAS or scan the QR Code

The group assignment registration should be done by the end of Week 2 (due on Friday-9
February 2024@5.00pm). Any changes with grouping (due to student withdrawal from course or
newly registered members) need to be informed to respective tutor via email by Week 3.

TASK 2: SELECTING AND FINALIZING COMPANIES TO BE ANALYZED

Select SIX (6) public listed companies in Main Market of Bursa Malaysia website (exclude
Financial Services sector). These companies must be selected from the same sector with THREE
(3) are ESG compliance (e.g. A, B & C) and THREE (3) non-ESG compliance (e.g. D, E & F).

The selection of companies is based on first come first served basis. To ensure no overlaps in
companies’ selection, it is your responsibility to check on the availability of companies in the
Google Sheet. This is to ensure no group selects the same companies with the others within the
same tutorial class. No changes of companies can be made after Week 3.

Once these two tasks have been performed, students may start answering the assignment questions.
Generally, this assignment question set covers the Chapter 8 (Lecture 4 and 5) on Portfolio Theory
and The Capital Asset Pricing Model (refer to Teaching Plan). Group members are encouraged to
initiate self-study within group assignment team in order to start with the assignment even before
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

the actual lecture session started for the topic listed. Students may clarify for any doubts on topics
studied by consulting Tutor or Lead Lecturer.

WRITTEN REPORT
Data collection: you will need to collect the following data before answering the assignment
questions.

 Go to Yahoo Finance website (historical data tab). Collect weekly share price data for the selected
companies for year 2023 (from 31st December 2022 until 31st December 2023). Download the data and
save it in Microsoft Excel file.
 Download the weekly price data for FTSE Kuala Lumpur Composite Index (FTSEKLCI) for 2023.
This data will be your market index.
 Treasury bill rate of return for 2023 in Malaysia.

QUESTIONS

a. Compute the weekly stock return (%), mean weekly return (%) and standard deviation (%) of
weekly returns for each stock and market index. (10m)

b. Using linear regression analysis tool pack in Microsoft Excel, extract the stock beta from the
regression output. This method of estimating beta is based on Single Index Market Model.

Ri = ai + biRm + ɛi

where,
Ri = the returns for stock i (i.e. individual stock weekly returns)
Rm= the returns for aggregate stock market (i.e. market index weekly returns)
bi = stock i beta. This is the slope coefficient from the regression results

Alternatively,
Covariance(𝑟𝑖 , 𝑟𝑚 )
𝛽=
Variance(𝑟𝑚 )
where,
𝑛
∑𝑖=1(𝑟𝑖 − 𝑟̅)(𝑟
𝑖 𝑚 − ̅̅̅)
𝑟𝑚
Cov(𝑟𝑖, 𝑟𝑚) =
𝑛−1

(10m)
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

c. Using the following equations, compute the covariance and correlation coefficient between each
pair of stock for each portfolio (i.e., AB, AC, BC, DE, DF, and EF).

𝑛
∑𝑖=1(𝑋𝑖 − 𝑋ˉ)(𝑌𝑖 − 𝑌ˉ)
Cov(𝑋, 𝑌) =
𝑛−1

Cov(𝑋, 𝑌)
𝜌𝑋,𝑌 =
𝜎𝑋 𝜎𝑌
(10m)

d. Using various weights of investment (wi) with a constant correlation yield generated in part (c),
calculate the following risk-return combinations for each portfolio (AB, AC, BC, DE, DF, and EF)
using the following template:

Stock i’s Stock j’s Expected return Standard deviation Beta of

weight weight of portfolio E(Rp) of portfolio E(p) portfolio E(βp)
(%) (%)
0.0 1.00
0.1 0.9
0.2 0.8
0.3 0.7
0.4 0.6
0.5 0.5
0.6 0.4
0.7 0.3
0.8 0.2
0.9 0.1
1.0 0.0
(25m)

e. Using the results generated in part (d), rank the portfolios based on the risk-return profile. Based
on the rankings, justify your selection using relevant analysis. In your discussion do include other
non-financial factor(s) that may influence your decision in deciding the type of portfolio to be
invested.
(20m)
f. Using the Capital Asset Pricing Model (CAPM), calculate the portfolio return for each portfolio
and compare the results generated in part (e). Decide on buying and selling decision based on the
findings with justifications. Identify the major pros and cons of using this model to make buy and
sell decision in managing your investment portfolio.
(25m)
[Total: 100m]
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

ASSIGNMENT HAND-IN DATE

Week 7, hardcopy during the lecture class and softcopy submitted to the WBLE link given
by Lead Lecturer.

Format of group assignment report

a. The written report of assignment must be word-processed, and converted into one single PDF file.
Pages beyond the stated maximum will not be marked. Hand-written assignment will not be
accepted. Raw data and details of the workings must be in Excel file.
b. Page limit: not more than TEN (10) pages including tables.
c. Paragraph alignment: justified.

d. Font type: Times New Roman, size 12, 1.5 spacing, one-inch margin on each side.
e. Students are reminded to include the mark sheet as the first page provided in Appendix 1. This
page was then followed by Table of Content (these two pages are excluded from the page limit
requirement).
f. All information sources and any relevant data used in your assignment must be included in the
report.
g. Reference format: APA style (refer to UTAR library page for guideline)

In order to obtain data and information in completing the report, groups are encouraged to
use the UTAR Library Resources for journal articles, Yahoo Finance websites, Refinitiv
database, Bursa Malaysia’s announcements, and Bank Negara website.

ACADEMIC INTEGRITY
If your work is not properly referenced it may appear that you are trying to present someone else's
ideas as your own. This is plagiarism and it is considered to be a form of cheating. It is your
responsibility to ensure that your work conforms to the University's standards of academic integrity.
Any assignment groups that are caught plagiarising or letting part or whole of their work to be
plagiarised will be penalised.
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

Discuss Course Plan:

Course It is designed to build upon and integrate corporate finance with other business
Objectives: functional areas. It deals with decision making based on careful analysis of relevant
information and illustrates the relationships among the functional areas of business. It
shows how decisions in one functional area impact on decisions in other areas.
 Introduce new concepts in corporate finance;
 Reinforce concepts learned in Financial Management;
 Illustrate the concepts using case studies and exercises;
 Demonstrate the relationships among the functional areas of business.

Course On completion of this course, a student shall be able to:

Learning
CLO1: Critically review established financial theories and their underlying context.
Outcomes:
CLO2: Effectively analyse problems and issues in the sphere of corporate finance.

CLO3: Apply various techniques to solve practical problems in the real-world

contexts.

References: Main References:

1. Watson, D., Head, A. (2022). Corporate Finance. Principles and Practice. (8th
Edition). Pearson.

Additional References:
2. Brealy, R. A., Myers, S.C. & Allen, F. (2021) Principles of Corporate Finance. (13th Ed.).
New York: McGraw Hill.
3. Ross, S., Westerfield, R., Jaffe, J. & Jordan, B.D. (2020) Corporate Finance. (12th Ed.). New
York: McGraw Hill
4. Ross, S. A., Westerfield, R. W., Jaffe, J. & Jordan, B. D. (2020). Corporate Finance: Core
principle and applications. (6th Ed.). New York: Mc Graw-Hill

Assessment Constructive Alignment Table

Methods:
No CLO PLO Delivery C/A/P and Assessment
Methods Taxonomy Methods & Mark Total
Level Breakdown*
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

Assignment

Final exam
Mid-term
Test
Lecture,
1 CLO1 6 C5 25% 25%
Tutorial
Lecture,
2 CLO2 7 C5 25% 25%
Tutorial
Lecture,
3 CLO3 8 C5 50% 50%
Tutorial
Total 25% 25% 50% 100%

No. Method of Assessment Total

1. Continuous Assessment
a) Mid-Term Test 25%
b) Group Assignment 25% 50%

2. Final Exam 50%

3. Grand Total 100%

1. Continuous Assessment (50% of Total Assessment)

Component A: Mid-Term Test (25% of Total Assessment)

This test aims to monitor students’ progress on the understanding of the lectures and
tutorial. The test schedule: WEEK 8, 20th March 2024, Wednesday evening 6.00pm
to 7.30pm (One and a half hour (1.5 hours), at the (refer to the announcement) UTAR
Sg. Long Campus. This test will cover Chapter 1 – Chapter 4 (Refer to Teaching Plan
below). Attendance for the test is COMPULSORY.

It will be a PHYSICAL CLOSED BOOK assessment. This mid-term test will comprise
40 MULTIPLE CHOICE QUESTIONS (MCQ). Students must answer ALL the
questions.
Facilities and Equipment: Students need to bring along their tablet or mobile
phone for multiple choice questions (MCQ).

Component B: Group Assignment (25% of Total Assessment)

Students are advised to strictly comply with all requirements stated for the assignment.
Students are required to group themselves into a group of FIVE members and to
register their grouping with their respective tutor by WEEK 2 or ten (10) marks will
 CORPORATE FINANCE (UKFF 3013)
JANUARY 2024 TRIMESTER
TUTORIAL 1
Discuss Course Plan and Assignment

be deducted for any delay in registration. Lead lecturer’s approval must be obtained if
there is any change in the number of students due to withdrawal from the course.

All assignment groups are required to submit their hardcopy during the lecture class
on Wednesday of WEEK 7 (13/03/2024) and softcopy submitted to the WBLE link
given by Lead Lecturer before 12:00pm. Each group is required to submit the
softcopy of their work according to the format stated in assignment question. Failure
to submit assignment before the due date will be subject to “Late Submission Penalty
Clause”.

Any assignment groups that are caught plagiarising or letting part or whole of their
work to be plagiarised will be penalised, with all the groups involved be awarded
ZERO (0) mark for the assignment. In addition, the students involved could face
disciplinary action from the University. (Please read Plagiarism below).

Late Submission Penalty Clause

Deadline for submission of assessment item(s) is to be strictly adhered to. NO
EXTENSION of time will be allowed except in extenuating circumstances, e.g.,
medical reasons. Students/Groups who wish to apply for extension of time for
submission of assessment item(s) after the due date shall put in writing the request
together with validated documentary evidence to support the application to his/her
class tutor. The lead lecturer may consider and grant such extension of due date for the
assessment item(s) based on the tutor's recommendation. Any assessment item
required by the Coursework Assessment that is submitted after the due date, without
an approved extension, will be penalised. A penalty of 10% (from awarded marks)
for each calendar day of delay from the specified deadline will apply. No assignment
submitted FIVE (5) calendar days after the due date will be accepted and hence the
assignment will be awarded ZERO (0) mark.

2. Final Examination (50% of Total Assessment)

The final examination for this course will be THREE (3.0) hours PHYSICAL
CLOSED-BOOK written examination. SELECT ANY 4 OUT OF 5 QUESTIONS.

Aggregate Marks
Students must achieve at least 50 marks out of the aggregate marks for coursework
and final examination in order to pass this course with a grade C. Failure to achieve
this will result in a repeat for this course in future trimesters.