Introduction:
Today's business professionals must understand the flow of financial resources. Such an understanding is needed daily; whether it is used to anticipate trends, evaluate company performance, or obtain funding. People from non-financial backgrounds are often called upon to make decisions based on modern financial controls, and they must have the know-how to navigate the financial systems that have a significant impact on their professional responsibilities.
This course designed to provide business professionals with a deeper understanding of corporate finance as practiced by today's most powerful companies. Designed specifically for non-financial personnel, this intensive seminar approaches the subject of finance as it relates to the corporation as a whole.
Targeted Groups:
- High-Level Managers integral to the decision-making process
- Non-Financial Business Professionals managing who has been promoted to financial positions
- Financial Professionals wanting an update or a “refresher” of their knowledge
- Junior Managers working in the finance area
- People who want to gain great knowledge to improve their career
Course Objectives:
At the end of this course the participants will be able to:
- Understand the appropriate discount rate to be used in investment appraisal
- Understand the pros and cons of different types of financing
- Recognize the factors must be considered in deciding on a dividend policy
- Learn what is the exact nature and scope of the issue to be analyzed
- Define products are available to manage risk
- Understand why is correlation so important in managing risk
- Understand specific variables, relationships, and trends are likely to help analyze an annual report
- Get the ability to actively participate in financial decision making
- Appreciate the relative merits of varying asset classes.
- Recognize the importance of risk in determining the cost of capital
- Utilize sophisticated investment appraisal techniques
- Appreciate the key items from an annual report and recognition of important ratios and linkages
- Recognize the appropriate tool to manage risk
- Integrate with spreadsheet modeling
Targeted Competencies:
- Financial analysis
- Financial decision making
- Risk management
- Financial statements
- Annual report
- Investments evaluation
Course Content:
Unit 1: Introduction to the Financial Markets:
- An introduction to the equity markets:
- IPO
- Market Indices
- International Equity Market Links
- An introduction to bond markets
- Long Term versus Short Term
- Treasury versus Corporate
- Types of Bond
- The spot and forward market
- Exchange Rate trends and linkages
- Carry Trades
- Futures
- Options
- An introduction to the FX market
- An introduction to the Derivatives Market
- The link between risk and return
Unit 2: Evaluating Investment Opportunities:
- The Markowitz model of Portfolio Risk
- The Capital Asset Pricing Model
- The time value of money and discounted cash flow techniques
- The Gordon Growth Model
- A practical application of forecasting dividends
- Determining the Cost of Debt
- The Ameritrade Case
- The importance of the cost of capital
- Scenario analysis
- The weighted average cost of capital (WACC)
- A practical application of the IRR approach
- Pitfalls in using the IRR approach
- Investment Appraisal using the Net Present Value approach
- Payback and adjusted Payback
- The Internal Rate of Return (IRR) approach
- Real Options
Unit 3: Annual Report:
- The Balance Sheet
- The Income Statement
- The Cash Flow Statement
- Ratio Analysis
- Forecasting Sales
- The cost of sales approach
Unit 4: The Corporate Financing Decision:
- Financial Leverage
- Modiglianni and Millers Theory of Capital Structure
- The Risk of Bankruptcy
- The Optimal Capital Structure
- The Dividend Decision
- The clientele effect
- The taxation effect
- The principal-agent problem
- The market for Corporate Control
Unit 5: Risk Management:
- Hedging Exchange Rate risk using:
- The forward market
- The options market
- Zero cost collars
- Hedging commodity price risk using:
- Options
- Futures
