Corporate Financial Strategy (BUSI4402) 2020/21 Individual Coursework Part 1: (a) What factors might determine the extent to which a firm has fixed rate debt on its balance sheet? Your discussion should include the firm specific and economy wide factors that might influence the percentage of fixed rate debt. (20 marks) (b) Critically evaluate the survey and empirical evidence in relation to the fixed-floating interest rate structure decision. (20 marks) Part 2: (a) Explain the meaning of fair value risk and cash flow risk in relation to the use of debt by non-financial firms. (5 marks) (b) Explain the meaning of fair value hedging and cash flow hedging in relation to the use of interest rate swaps by non-financial firms. (5 marks) (c) Using data and information contained in the annual reports you have been assigned, describe and where possible quantify the interest rate risk faced by the firms. You should attempt to use data/information from annual reports over the period 2015 to 2020. You can also source data for your firms from a financial database. (20 marks) Hints: Your discussion should include where possible the following: (i) An assessment of whether the firm’s cash flows or profits are in any way correlated with market rates of interest and if so the sign of the correlation. No calculations required. (ii) Does the firm have borrowings? (iii) What is the relative size of these borrowings or other measures of the extent of the firm’s financial obligations? Does the firm disclose its leverage ratios? If not try to calculate them. How do they compare with the industry average? (iv) Is the firm able to generate cash/profits so that it can pay its financial obligations? Does the firm disclose its interest coverage ratios? If not try to calculate them. How do they compare with the industry average? (v) Is the interest payment on the borrowings a fixed or floating rate? (vi) What is the percentage of fixed or floating rate debt before the effect of hedging? If possible provide this data from 2015 to 2020. (vii) What are the trends in various financial obligations ratios? (Leverage, interest coverage ratios etc) (d) Using data and information contained in your firms annual reports describe and explain the interest rate hedging strategy employed by the firms. (30 marks) Hints: Your discussion should include where possible the following: (i) Relate back to part 2 c) on the interest risk faced by your firm. (ii) Does the firm have a target for the fixed-floating interest rate debt structure? What is this target ratio? Does the firm provide a reason for this target ratio? (iii) Which types of interest rate hedging instruments is the firm using? (iv) Explain whether the firm is carrying out a fair value or cash flow interest rate hedging strategy. Is the firm swapping into fixed rate or floating rate debt? Is it doing a bit of both? If you cannot determine then indicate this. (v) Explain why the particular hedging stra ...

1. Corporate Financial Strategy (BUSI4402) 2020/21
Individual Coursework
Part 1:
(a) What factors might determine the extent to which a firm has
fixed rate debt on its balance sheet? Your discussion should
include the firm specific and economy wide factors that might
influence the percentage of fixed rate debt. (20 marks)
(b) Critically evaluate the survey and empirical evidence in
relation to the fixed-floating interest rate structure decision. (20
marks)
Part 2:
(a) Explain the meaning of fair value risk and cash flow risk in
relation to the use of debt by non-financial firms. (5 marks)
(b) Explain the meaning of fair value hedging and cash flow
hedging in relation to the use of interest rate swaps by non-
financial firms. (5 marks)
(c) Using data and information contained in the annual reports
you have been assigned, describe and where possible quantify
the interest rate risk faced by the firms. You should attempt to
use data/information from annual reports over the period 2015
to 2020. You can also source data for your firms from a
financial database. (20 marks)
Hints: Your discussion should include where possible the
following:
(i) An assessment of whether the firm’s cash flows or profits are
in any way correlated with market rates of interest and if so the
sign of the correlation. No calculations required.
(ii) Does the firm have borrowings?

2. (iii) What is the relative size of these borrowings or other
measures of the extent of the firm’s financial obligations? Does
the firm disclose its leverage ratios? If not try to calculate them.
How do they compare with the industry average?
(iv) Is the firm able to generate cash/profits so that it can pay
its financial obligations? Does the firm disclose its interest
coverage ratios? If not try to calculate them. How do they
compare with the industry average?
(v) Is the interest payment on the borrowings a fixed or floating
rate?
(vi) What is the percentage of fixed or floating rate debt before
the effect of hedging? If possible provide this data from 2015 to
2020.
(vii) What are the trends in various financial obligations ratios?
(Leverage, interest coverage ratios etc)
(d) Using data and information contained in your firms annual
reports describe and explain the interest rate hedging strategy
employed by the firms. (30 marks)
Hints: Your discussion should include where possible the
following:
(i) Relate back to part 2 c) on the interest risk faced by your
firm.
(ii) Does the firm have a target for the fixed-floating interest
rate debt structure? What is this target ratio? Does the firm
provide a reason for this target ratio?
(iii) Which types of interest rate hedging instruments is the firm
using?
(iv) Explain whether the firm is carrying out a fair value or cash
flow interest rate hedging strategy. Is the firm swapping into
fixed rate or floating rate debt? Is it doing a bit of both? If you
cannot determine then indicate this.
(v) Explain why the particular hedging strategy might have been
adopted.
(vi) What is the percentage of fixed or floating rate debt after

3. the effect of interest rate hedging instruments? If possible show
the trend in this ratio in a graph over the period 2015 to 2020.
Does the firm report this ratio in total debt or net debt terms?
The word limit for this coursework is a maximum of 1200-1350
words.
YOU MUST CLEARLY STATE THE NUMBER OF WORDS
USED AFTER EACH PART OF THE COURSEWORK.
Assignment companies are
Company Name 1
The Sage Group plc (LSE:SGE)
Company Name 2
SSP Group plc (LSE:SSPG)
Company Name 3
Keller Group plc (LSE:KLR)
School of , Blank University

4. Author Note
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
Email:
Abstract
Keywords:
2
1
References
Research and write a paper analyzing the cultural perspectives
of doing business in another nation. You will select a nation to
study. There will be a list of approved nations. Select a nation,
then begin working on the project.
List of approved nations:
North America: Canada, Mexico

5. Europe: Austria, Belgium, Czech Republic, Finland, France,
Germany, Hungary, Ireland, Italy, Netherlands, Poland, Spain,
Sweden, United Kingdom, Norway, Russia, Switzerland
Pacific Rim Countries: Australia, China, Indonesia, Japan,
Malaysia, Philippines, Korea, South, Singapore, Taiwan
South/Central America: Argentina, Brazil, Chile, Colombia,
Venezuela
Africa: Algeria, Egypt, Nigeria, South Africa
Other Countries: India Thailand
After reading your paper, the reader should be able to
comprehensively answer the following research questions. Thus,
the research questions form the major aspects (APA Level 1
headings) of your outline.
· What are the major elements and dimensions of culture in this
region? The 8 dimensions are:
· How are these elements and dimensions integrated by locals
conducting business in the nation?
· How do both of the above items compare with US culture and
business?
· What are the implications for US businesses that wish to
conduct business in that region?
Important Points to Consider
This paper must be written in strict conformance to current APA
format, and contain a minimum of 24 pages of content
(excluding the title page, abstract, and references) utilizing at
least 24 references from reputable professional and/or scholarly
journals and/or informational venues that deal with the content
of the course (i.e., not blogs, Wikipedia, newspapers, etc.).
1. Use the following as the exact title of your paper, Global
Business Cultural Analysis: (insert nation selected)
2. The paper must consist of only 4 sections, as indicated above.
Do not add sections, or revise the research questions.

6. 3. Three levels of current APA headings must be used
throughout the paper, as this is a graduate-level research paper.
When you paraphrase, you must still give the author’s name,
date, title of the source, the scholarly journal from where it
came, and the exact website address or book from where it
came. However, when you directly quote a source, it must have
quotation marks around the quote, or (if 40 words or more) it
must be set in block quotation format. Give detailed information
of where you acquired the quote.
For the purpose of this academic paper, adhere to the following
rules when quoting or using a source:
· Do not directly quote more than 120 words from any 1 source.
· If the source is 2,000 words or less, do not directly quote more
than 50 words from it.
· Do not use the same source more than a total of 3 times within
the whole document for quoting or paraphrasing.
· Quotes must contain the section (if provided) and paragraph or
page numbers of the quote and this information must be placed
in the reference.
· In all instances, use current APA guidelines for citations and
references.
GBCA Outline Example: Introduction
Seriously relevant graduate school research requires a question
for which no ready answer is available. The research is
conducted, to answer specific questions regarding a topic,
problem, or issue for which the answers are not yet known.
Let’s focus on the concept of a topic. What do you want to
know about a topic? Asking a topic as a question (or series of
related questions) has several advantages:

7. Questions require answers. A topic is hard to cover completely
because it typically encompasses too many related issues; but a
question has an answer, even if it is ambiguous or controversial.
Questions give you a way of evaluating the evidence. A clearly
stated question helps you decide which information will be
useful. A broad topic may tempt you to stash away information
that may be helpful, but you're not sure how. A question also
makes it easier to know when you have enough information to
stop your research and draft an answer.
A clear open-ended question calls for real research and
thinking. Asking a question with no direct answer makes
research and writing more meaningful to both you and your
audience. Assuming that your research may solve significant
problems or expand the knowledge base of a discipline involves
you in more meaningful activity of community and scholarship.
In this course, the required research questions are open-ended
and require a variety of accumulated data to develop answers.
Your topic is a Global Cultural Business Analysis of the nation
you selected. You have been provided four specific research
questions to guide you in the study of this topic which, if done
well, will demonstrate you have attained an advanced measure
of expertise in the topic. The research questions provide the
framework of your analysis.
1. Question 1 requires you to discuss the general elements of
culture (described in Chapter 2 of your textbook) as they apply
to your chosen nation.
1. Question 2 is a natural extension of Question 1 in that you
will demonstrate how these elements of culture are used in
business dealings by the people of your nation.
1. Question 3 is a natural extension of Question 2 in that you
will compare and contrast these specific findings with business
cultural elements found in the USA. Here is where you use the
models for understanding cultures (Hofstede, etc).

8. 1. Question 4 is where you briefly summarize your research
findings and is the place where you draw substantive
conclusions and report the implications of your research for
doing business in that nation. Questions 1 through 3 “set the
stage” for Question 4.
Question 4 is the most significant for two reasons, for two
audiences: the reader and your professor. A substantive and
comprehensive coverage demonstrates to the reader why the
research is important and how it can be used in business
dealings for US managers. It also demonstrates to your
professor the extent to which you have mastered the necessary
advanced analysis and critical thinking skills required of a
graduate-level student.
The example begins on the following page. Be sure to use the
exact wordings in this outline for your APA level-headings.
EXAMPLE OUTLINE
Research Question 1: What are the major elements and
dimensions of culture in this region?
Communication
Religion
Ethics
Values and Attitudes
Manners
Customs
Social Structures and Organizations

9. Education
Research Question 2: How are these elements and dimensions
integrated by locals conducting business in the nation?
Communication
Religion
Ethics
Values and Attitudes
Manners
Customs
Social Structures and Organizations
Education
Research Question 3: How do both of the above items compare
with United States culture and business?
Compare/Contrast Greenland with USA, based on answers to
Research Questions 1 and 2
Hofstede analysis
Research Question 4: What are the implications for United
States businesses that wish to conduct business in that region?

10. Analysis of facts from prior three questions
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
FDI Analysis
Rubric
Criteria
Levels of Achievement
Content 70%
196 points total
Advanced 92-100%
Proficient 84-91%
Developing 1-83%
Not present
Research Question 1
49 to 45 points
All 8 dimensions of culture are covered in terms of the general
societal deployment of the dimensions.
44 to 41 points
Most of the 8 dimensions of culture are covered in terms of the
general societal deployment of the dimensions.
40 to 1 points
Some of the 8 dimensions of culture are covered in terms of the
general societal deployment of the dimensions.
0 points
Research Question 2
49 to 45 points
All 8 dimensions of culture are covered in terms of the daily

11. business dealings in the nation.
44 to 41 points
Most of the 8 dimensions of culture are covered in terms of the
daily business dealings in the nation.
40 to 1 points
Some of the 8 dimensions of culture are covered in terms of the
daily business dealings in the nation.
0 points
Research Question 3
49 to 45 points
All points of comparison and contrasts are covered, including a
Hofstede analysis.
44 to 41 points
Most points of comparison and contrasts are covered, including
a Hofstede analysis.
40 to 1 points
Some points of comparison and contrasts are covered, including
a Hofstede analysis.
0 points
Research Question 4
49 to 45 points
All concluding aspects of the research question were covered,
including a SWOT analysis and a FDI analysis.
44 to 41 points
Most concluding aspects of the research question were covered,
including a SWOT analysis and a FDI analysis.
40 to 1 points
Some concluding aspects of the research question were covered,
including a SWOT analysis and a FDI analysis.
0 points
Structure 30%
84 points total
Advanced 92-100%

12. Proficient 84-91%
Developing 1-83%
Not present
APA-compliant abstract
30 to 28 points
All APA requirements for this item are included.
27 to 25 points
Most APA requirements for this item are included.
24 to 1 points
Some APA requirements for this item are included
0 points
APA-compliant level headings
8 points
All APA requirements for this item are included.
7 points
Most APA requirements for this item are included
6 to 1 points
Some APA requirements for this item are included
0 points
APA-compliant pagination
8 points
All APA requirements for this item are included.
7 points
Most APA requirements for this item are included
6 to 1 points
Some APA requirements for this item are included
0 points
APA-compliant spacing: lines and between paragraphs
8 points
All APA requirements for this item are included.
7 points
Most APA requirements for this item are included
6 to 1 points
Some APA requirements for this item are included
0 points

13. APA-compliant citations and references
30 to 28 points
All APA requirements for this item are included.
27 to 25 points
Most APA requirements for this item are included
24 to 1 points
Some APA requirements for this item are included
0 points
Note the following submission scenarios:
1. The GBCA has only four required sections. Only the four
required sections will earn credit in terms of content page
count. You may include other sections, but these will not earn
credit and be subtracted from the overall content page count
(refer to point 2 below).
2. A minimum of 24-pages of content is required, this number
excludes the title page, abstract, references, and conclusion.
Thus each page of content is worth 12.5% of the total grade;
thus, 12.5 points will be deducted for each page of content
missing (refer to point 1 above).
3. SafeAssign score exceeding the threshold of 16% will be
considered as academic dishonesty, and no points will be given
for the entire assignment.
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Jeanine,