Introduction:
This course offers insights into the world of corporate finance. The focus is on every responsibility area of the firm & how finance impacts what they do. To that end, this course offers an overview of the interaction between finance, management, and all other stakeholders. Because stakeholders’ demands are best met by an efficient allocation of resources, this course looks at that purpose.
Corporate Finance not only presents the key financial terms & tools as they are used in the real world but also explains the broader context of how and where they are applied to every area of the firm. Participants attending this program will gain an understanding of the inter-relationship of financial decisions to the firm’s strategy. Additionally, an understanding of how decisions are made using the firm’s financial statements will tremendously help everyone manage the organization better
Targeted Groups:
- Finance Managers
- Corporate Controllers
- Financial Controllers
- Treasury Professionals
- Chief Accountants
- Accounting Managers
- Senior Accountants
- Banking Professionals
- Investment Professionals
- Corporate Business Professionals
- Finance Professionals
Course Objectives:
At the end of this course the participants will be able to:
- Use financial statements to make a more positive impact on the organization
- Make better decisions with Finance
- Maintain better control of resource use
- Build superior budgets that get approved
- Be able to analyze variances from goals accurately & quickly
- Manage the working capital
- Relate accounting & finance
- Analyze financial statements
- Make better capital budgeting decisions
- Use working capital more wisely
Targeted Competencies:
- Understanding operating, investing and financing decisions
- Working capital management
- Capital investments decision making
- Calculating the cost of capital
- Setting dividend policy
- Financial forecasting
- Equity valuation
- Understanding financial statements
- Understand how to optimize decisions through analysis
- Use leverage to optimize growth
- Analyze capital projects using multiple tools for better results
- Become comfortable conversing on all finance subjects
Course Content:
Unit 1: Introduction to Accounting & Finance:
- What is Accounting
- What is Finance
- How does Finance differ from Accounting
- What are the differences between Financial Accounting and Management Accounting?
- Your impact on financial statements
- Planning, forecasting, and budgeting
Unit 2: Financial Statements & Their Critical Elements:
- Balance Sheet
- Income Statement
- Cash Flow Statement
- Non Cash Deductions & its Impact
- Depreciation VS Amortization vs. Depletion
- Book Value VS Market Value
- Understanding the shareholders expectation
Unit 3: What is Working Capital – Liquidity or Bankruptcy:
- Working capital (WC) defined
- Components of WC
- Cash
- Accounts receivable
- Inventory
- Accounts payable
- What is the right amount of WC & why
- The critical ratios to compute
- Other WC tools like accounts receivable & payable agings
- Why credit policies & collection procedures matter
Unit 4: Capital Structure:
- What it is & why it is important
- Equity capital - what it is & why it impacts our decisions
- Debt capital – what is it really & how it impacts the required rate of return
- Weighted Cost of Capital (WACC) – why it is so important
- Calculating your WACC: when & how to use it
- Leverage: two-edged sword - defined
- Operating vs. financial vs. combined leverage – calculated
Unit 5: CAPEX - Analysis of Investment Decisions with What-if Risks:
- Cash Flows and the Time Value of Money
- Discuss the capital project evaluation process
- Estimating cash flows over the useful life of the project
- Net present value (NPV) & Internal Rate of Return (IRR) as preferred methods
- Profitability Index (PI) & Modified Internal Rate of Return (MIRR) as reasonable alternatives
- Defining the approval criteria and review process
