You are a trainee at Odburn and Lake LLP (OL), a leading international law firm with offices in 11 major cities throughout the UK and Europe and its headquarters in London.

QUESTION 1

OL’s tax team have asked you to write a short article to be placed on the firm’s internal intranet site. You have been asked to:

• Choose two fiscal policy measures deployed by the UK government in response to the pandemic and explain the economic rationale for their use. When selecting the measures please consider (b) and (c), selecting measures that illustrate the points you wish to make.

• Analyse whether the measures you chose at (a) were effective in the short term (less than 12 months). Use economic data to support your evaluation.

• Critically evaluate whether the fiscal measures you identified are likely to stimulate the economy in the long term and/or whether they carry the risk of causing problems in the economy.

Total marks for Question 1:  25 marks

In preparation for a meeting with your client Proptech PLC and its accountants you have been asked to prepare a note in which you:

• Calculate the Weighted Average Cost of Capital (WACC) of Proptech PLC using the capital asset pricing model and relevant information in the Appendix. Please show the sub-calculations made to arrive at the final figure clearly.

You are advised to avoid rounding figures until you arrive at the WACC figure itself at which point please round to the nearest 2 decimal places.

(8 marks)

• Please read the Appendix to this assessment.

Proptech PLC has expansion plans which involve significant investment. Decisions will be taken using net present value, internal rate of return and payback valuation methods.

• Explain fully if, how and why WACC will be used in the calculations.

• Critically evaluate the usefulness and relevance of using WACC in the calculations.

(12 marks)

Total marks for Question 2:     20 marks

QUESTION 3

OL are analysing the legal market to inform their strategy.

The partners have allocated a selection of firms to trainees and have asked trainees to submit a SWOT analysis of their allocated firm to the partners.

You have been asked to complete a SWOT analysis of Slaughter and May. You are keen to impress the partners and intend to show your analytical and research skills in this task. Ensure that you explain why the points you make are a strength/weakness/opportunity/threat and reference your sources.

You must use publicly available information (including information on ULaw’s library database) and reference your work throughout so that the information can be verified. No credit will be given for points based on personal knowledge or insight gained other than via public sources.

Total marks for Question 3:  30 marks

OL are reviewing their diversity and inclusion policies. Your partner has been asked to lead on this and has asked you to help. He would like you to write a report in which you:

• Evaluate the firm’s diversity and inclusion statement reproduced in full below, sharing in that evaluation what you think is good about the statement and why and pointing out any improvements to the statement that you feel would add value to it.

“At Odburn and Lake LLP we value diversity in our team for the unique perspectives and bright ideas a diverse team generates. We embrace employees from underrepresented groups and recruit regardless of race, colour, gender identity and expression, religion, national origin, ancestry, citizenship, physical abilities, body size, age, sexual orientation, veteran status, or criminal history.”

(12 marks)

• present an informed and balanced view on whether allowing staff to work from home for part of the week is inclusive. In your answer, please explain what you mean by inclusivity.

(13 marks)

Total marks for Question 4:  25 marks

TOTAL MARKS FOR THIS ASSESSMENT:  100 MARKS

 

Appendix

Extract Financials: Proptech PLC

Profile: United Kingdom-based real estate investment trust. The Company owns, develops and manages warehouse properties in the United Kingdom and Europe. The portfolio includes warehouses and light industrial buildings, including warehouses used as data centres and for logistics operations. These are concentrated in the United Kingdom, France, Germany, and Poland. The remainder of the portfolio is located across other European countries including Spain, the Netherlands and the Czech Republic. Its properties are used by various sectors, including retail, transport and logistics, post and parcel delivery, services and utilities, retail, and technology, media and telecoms.
Shares in issue	12 million		Bonds: total bonds issued	800 000
Current market value per share	338p		Current market value per bond	£115.20
Beta	0.5566		Issue date	12 February 2000
Risk free rate	1%		Redemption date	12 February 2024
Market rate	4%		Coupon – fixed income bond	6.75%
P/E ratio	11.09		Issue price	£100
Dividend yield	1.60%		Corporation tax rate	19%