COURSEWORK BRIEF AND CASE STUDY

1. Background
Read S&P news announcement ‘AT&T Inc. (NYSE: T) entered into a definitive agreement
to acquire Time Warner Inc.’ (NYSE:TWX)’ (S&P case study enclosed in Appendix 1).
Perform the following tasks of analysis and write up your finding and research in a report
format, firstly with your group for Coursework 1, and secondly, write your individual report
for Coursework 2. You are encouraged to conduct research on the effects of the news on share
price and outline your analysis of the event.
This is a completed case of M&A. The study should review the state of the play, valuation and
trading strategy going forward from the news was initiated. Students are encouraged to take a
rear-looking forensic view on the history of acquisition event. Corporate announcements can
be found on Time Warner website below:
http://about.att.com/story/att_completes_acquisition_of_time_warner_inc.html

2. Objectives
The assessment is made up of two parts with the weight and word count shown below.
• Coursework 1: Group Work Report (40%), Word Count: 1,500 Words
• Coursework 2: Words Individual Report (60%), Word Count: 2,000 Words
Group members are randomly assigned and cannot be changed representing real work setting
where you can’t choose who you work with. Students are required to complete both parts.
Coursework 1: Group Work Report (40%)
This assignment is in the form of a group coursework report based on a case study of Merger
and Acquisition (M&A) event based on the above case study of AT&T acquisition of Time
Warner. The purpose of group work report is to develop relevant Excel templates to provide
valuation and interpret price impacts following the event.
• Conduct in-depth background research to enhance the analysis of the acquisition event. Such
research should demonstrate in-depth understanding on the working of the sector. You should
set up a timeline (see Section 3 below) to reflect the chronicle of events and key dates. (20%)
• Conduct comprehensive valuation on AT&T and Time Warner prior to the acquisition
announcement. Your valuation should use relevant valuation technique(s) to arrive at an
appropriately discounted present value (per share). (40%)
• Evaluate the extent of price impacts on AT&T and Time Warner following the news
announcements on acquisition. Does the movement of share price reflect the insights from
Efficient Market Hypothesis (EMH)? (40%)
Coursework 2: Individual Report (60%)

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This assignment is the form of an individual coursework report based on the same case study
albeit with a different focus on event analysis and trade. The purpose is to develop relevant
Excel templates to conduct event studies to test market efficiency. Based on the result of event
studies, trading strategies and instruments are to be applied to exploit price
efficiency/inefficiency during the process of acquisition to arrive at appropriate conclusion and
recommendation for the deal.
• Conduct event analysis to test EMH and derive your trading profit from the event. An event
analysis template is provided separately based on Chapter 14 contents of Simon Benninga
textbook ‘Financial Modelling (4th edition)’. (40%)
• You are required to demonstrate trading strategies and instruments that would be
appropriate to exploit price efficiency/inefficiency during the process of acquisition. Your
analysis should forecast possible trading profit going forward until the appropriate cut-off
date. (40%)
• Conclusion and Recommendation. Conclude your analysis based on the above analysis and
recommend appropriate course of action for trading on this M&A event (10%)
• Award for Class Participation (10%)
Class participation grade is in based on your seminar tutor’s discretion for your attendance
and participation in class. Research and originality award research and original thinking that
go beyond standard analysis and template to derive new insights.

3. Timeline
The announcement of the above event by S&P Capital IQ occurred on 22 October 2016. The
cut-off or last date of your analysis should be 15 June 2018.
Respectively, your estimation window* should run at least one year before the event
announcement date, e.g. 22 October 2015.
Your event window should have a cut-off or last date on 15 June 2018.
*See Chapter 14 Simon Benninga’s textbook for the definition of ‘estimation window’.

4. Format and Weighting

The assessment is made up of two parts with the weight and word count shown below.
• Coursework 1: Group Work Report (40%), Word Count: 1,500 Words
• Coursework 2: Words Individual Report (60%), Word Count: 2,000 Words
• Need to provide data and valuation result in Excel model as evidences
Your Excel model needs to be sent separately to both your module leader and seminar tutor
by email so that we verify the details of your model on your submitted paper.
Group members are randomly assigned and cannot be changed representing real work
setting where you can’t choose who you work with.
Students are required to complete both parts.
Organize your findings in both Report format according to the weight presented in Section 2.

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References and appendixes will not be included in the final word count.
Coursework Submission Deadline: See Moodle Submission Link

5. Key Learning Outcomes

• Demonstrate knowledge of the purpose and functions of global financial markets
• Analyse the role of financial market data in supporting business decisions
• Critically evaluate the impact of the global financial markets on the business
environment
• Demonstrate the ability to analyse and present quantitative data to support an argument.
• Use information technology to analyse and communicate financial data

6. Late submission
Late submission will be marked at 0 but will allow a resit opportunity. No submission will be
recorded as ‘Absent’. Extensions will be in accordance with University policy.

7. Grades
You must check that all your coursework marks have been recorded accurately on Moodle
and notify your module leader if you believe a mistake has been made. All grades are
provisional until confirmed by the Subject Assessment Board. It is possible that notified
marks may be raised or lowered by this board. Students are encouraged to keep copies
(electronic) of all coursework submitted on this module.

8. Plagiarism
Students are advised to consult the University Regulations* and their course handbooks
regarding the penalties for and definition of plagiarism, which essentially is the deliberate and
substantial insertion in your own work of material from someone else e.g. a published source
such as a book or article, or simply another student’s piece of work, without acknowledging
the extent or source of the quotation.
*To view regulations use the University website.
Referral Resubmission of assignment, by the Faculty re-sit deadline (posted on the module
web when date confirmed).
Further information can be found on your module and course handbook.

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