Assignment Task:
The Arden Fund, a collection of ethical investors is interested in purchasing a significant volume of shares in the Lloyds Banking Group. Prior to investing the consortium require a report of the firm from both an internal and external perspective.
Question 1: Analyse the financial status (performance and position) of the Lloyds Banking Group, using appropriate financial ratios and by looking at the annual report, and then create a report for The Arden Fund investors. Identify any potential risks or potential issues for ethical investors. https://www.lloydsbankinggroup.com/investors/annual-report-2019/ The report should include consideration of: Profitability Liquidity Working capital management Financing structure (50 marks)
Question 2: Critically evaluate the discipline that financial markets have imposed on Lloyds Banking Group. Your explanation should include a discussion of governance, financial reporting and dividend policy. (20 marks)
Question 3: Critically evaluate the role of the finance function in Lloyds Banking Group using both the annual report along with the inclusion of wider knowledge from other sources. (10 marks)
Question 4: Using your analysis throughout then explain how financial information is important in:
(a) The mergers and acquisitions process 10 marks
(b) The valuation of a company 10 marks (20 marks)
