Portfolio Management and Corporate Finance Principles

Introduction:

The aim of Portfolio Management and Corporate Finance Principles training course is to provide management executives with the requisite tools to avoid making value-destroying decisions, the consequences of which can be catastrophic for the company, its employees, and the economy.

Over the five days, we will cover the key financial decisions facing senior management, namely: how a company or project is financed, how companies and projects are evaluated and how residual cash flow is dissipated to shareholders and senior management. In order to motivate these decisions, the first two days will provide a thorough grounding in financial instruments.

Targeted Groups:

• Senior Executives who want to fully and knowledgeably participate in financial decisions.
• Junior Executives needing to expand their skills to help them progress up the career ladder.
• Finance Professionals
• Corporate Finance Staff

Course Objectives:

At the end of this course the participants will be able to:

• Acquire detailed knowledge of available financial instruments
• Understand the distinctions between active and passive portfolio management
• Understand the issues in raising long term and short term finance
• Apply advanced investment appraisal techniques
• Reconcile the remuneration needs of all stakeholders

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
• Portfolio management
• Debt and equity securities
• The IPO process

Course Content:

Unit 1: Debt Securities and Equity Securities:

• Understand different types of debt and equity securities
• Compare risk and return of equity and debt instruments
• Bond pricing and equity valuation
• Passive portfolio management
• Active portfolio management

Unit 2: Derivatives and Alternative Investments:

• Characteristics and features of derivatives contracts
• Hedging risk using futures and option contracts
• Achieving leverage using derivative contracts
• Pricing of derivative contracts
• Advantages and limitations of alternative investments

Unit 3: Short and Long Term Financing:

• Financing companies for growth
• The capital structure decision, theories and evidence
• The IPO process
• The pros and cons of achieving a stock market listing
• The advantages and disadvantages of debt

Unit 4: Investment Appraisal and Company Valuation:

• The weighted average cost of capital
• NPV, IRR, payback and modified payback
• Evidence from CFO’s on preferred techniques
• Real options
• Free cash flow approach

Unit 5: Dissipation of Residual Earnings:

• The remuneration decision
• The role of share options
• The dividend decision
• Dividend policy in action
• Mergers and acquisitions