R/615/3236 Investment Analysis - OTHM Level 7 Diploma in Accounting and Finance

Aim: The aim of this unit is to develop learners' understanding of investment theories and market equilibrium models, and includes the requirement to perform bond valuations and evaluate current investment performance.

Learning Outcome 1: Understand different types of securities.
Learning Outcome 2: Understand the regulation of security trading and new issues in world markets.
Learning Outcome 3: Be able to apply principles of investment theory, securities and market analysis.
Learning Outcome 4: Understand the principles of taxation.
Learning Outcome 5: Understand the laws and regulations controlling the financial services industry.
Learning Outcome 6: Be able to plan, manage and assess client portfolios.

Task 1 - Report

Tim & Co is building a new factory in Yorkshire, England. They must pay a final construction payment of £ 9,000,000 in six months' time.
Foreign exchange and interest rate quotations are as follows:

Prepare a portfolio of evidence that addresses the following questions.
1. Is covered interest arbitrage worthwhile? If so, explain the steps and compute the profit based on an initial transaction of £9,000,000. Briefly discuss your findings.
2. Identify laws and regulations controlling the financial services industry.
3. Assess the principles of direct and indirect taxation and review the implications on a range of business stakeholders.
4. Evaluate the key characteristics of different types of securities and assess the strengths and weaknesses of the securities.

Referencing:
• Each section must reflect any supporting Harvard style citations.

Task 2 - Presentation

Air UK & Co PLC is an airline service company listed on the London Stock Exchange (LSE) and is based in the UK.
It is a low-cost carrier and has firmly established itself as the UK's leading low fares scheduled passenger airline.
The primary objective of Air UK & Co is to offer airline services at low fares to generate more passenger traffic, whilst maintaining the focus on cost containment and operating efficiencies.

As the strategies, they developed have stimulated demand, Air UK and Co is now looking to invest in another listed company on the LSE which belongs to the economy / value class airline services and provides passengers with an economy class air travel experience.
For this assignment, you are the finance manager of Air UK and Co and are required to develop the business proposal presentation.

Prepare a comprehensive presentation to assess the viability of the business expansion project.
The following requirements need to be addressed when preparing the presentation.
• Review the regulations, policies and procedures used when trading in securities.
• Identify, analyse and review issues in global markets including the London Stock Exchange.
• Evaluate the portfolio management in relation to the investment according to the customer profile and needs.
• Justify appropriate types of savings and investments for the hypothetical expansion of Air UK & Co airline services.
• Explain the principles of investment theory and evaluate the use of securities.
• Demonstrate the underlying concepts of market analysis and efficiency.