• You need to write a report discussing the nature of capital markets and the choice of valuation model. You need to integrate academic papers into your discussion. 

Below is the marking scheme. Please refer to CW guideline. doc for more information if needed. 

**Please work on the third point- I have essential readings for this section. Please write base on the articles I provied. I will also upload `FSA.doc` where I have written the 1st and4th point FYI. 

This piece of work is linked to Section A - a forecast model - please see excel spreadsheet 

1 Brief overview of the firm and its market 

2 Discussion of why your target price at t0 (31 March 2015) differed to the actual price at t1 (31 March 2016) Some references are required e.g. to efficient markets, behavioural finance etc 
- values for section B (2) - intrinsic value 1,327, actual value at 30 March 2016 - 1384 - explain the difference using macro events & theories 

3 Discussion of which valuation model (5 models, i.e. Adjusted Present Value, Discount Dividend, EVA, Residual Income, and Free Cash Flow) you prefer when valuing WS Atkins. Some references are required e.g. to APV etc

Notes for point 3: 

• 5 Discount Cashflow models as mentioned in the questions 
• Please develop an argument and choose the best model for Atkins using the articles I provided 
• All of them are essential articles provided by lecturers 
• Brief ideas regarding the models are as below : 
o Dividend and residual income is equity based 
o The other 3 require debt: 
§ FCF (WACC – debt in equity)
§ EVA ( residual income on enterprise based) 
§ Adjusted present value is about the tax shield (a reason not using APV because it’s not clear what you have to do in regards to the calculations method – please find the reference if you are writing this on the work)
• All 5 models give the same figures (you can refer to the excel spreadsheet I provide) 
• I think Discount Dividend model might be the best one(as Atkins has pay dividends every year) or residual income but I am not sure 
• Kindly can you read the 6 articles uploaded and find the arguments for it. There are more suggested articles towards the end of CW guideline doc if needed
• Ask me if you have any questions