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Risk Management
Total risk management is the combination of all the elements of risk management into a consistent strategy...
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Training - Investment Banking
Corporate Financing:
2 days
The aim of this course is to examine the theoretical
underpinnings of corporate finance and see how they are
applied. There will be more emphasis on “how corporate
financing is really done” by undertaking a series of case
analyses and group discussions.
This is not a theoretical course, but practical. Understanding
how to apply theory to practical situations, to see the
essence of financing problems, is the key contribution of the
course.
This newly revised and updated introductory course draws upon
both finance theory and practical applications to help
managers understand the key concepts that underlie the
analysis and execution of financial decisions. Starting with
the objectives of the firm and its Chief Financial Officer,
the course will teach students how to apply time value of
money principles, the capital budgeting framework, and
analysis of financing options when making financial decisions.
Course Outline
Learning Objectives and Outline
Learning Objectives: After completing this course you should
be able to:
* Identify elements of corporate investment projects.
* Recognize elements and sources of corporate financing.
* Identify factors affecting the flow of corporate funds.
* Relate the Efficient Markets Hypothesis (EMH) to corporate
financial decision making.
* Define the present value of money.
* Recognize the formulas involved in solving for different
examples of present value.
* Recognize the formulas involved in solving for different
examples of future value.
* Use a financial calculator to practice solving present and
future value problems.
* Evaluate investments by calculating interest rates, annual
bond yields, and stock prices.
* Discuss the factors that affect interest rates and borrowing
costs for financing projects.
Additional Objectives: Recognize the advantages of using Net
Present Value versus Internal Rate of Return to calculate the
value of a project. Recall when and how to use the
profitability index to rank the value of a project. Determine
the value of projects that have different life spans using the
approaches called lowest common denominator and annual
equivalency cash flow. Recognize the formulas for the
after-tax weighted average cost of capital and capital asset
pricing model and how they are used to determine the cost of
capital. Identify the formulas for calculating cash flows
resulting from investments and how they are used to determine
the profitability of a project. Recognize factors influencing
a financing decision and characteristics influencing the
associated debt/equity mix. Recognize the significance of the
debt-to-equity ratio to the financing decision and why firms
may choose debt. Recognize the effects of leverage and its
relationship to cost of equity (how financing decisions affect
the value of a firm). Calculate the cost of equity under
various leverage ratios.
Introduction to corporate finance
* Decisions of the corporate finance manager
* Maximizing the welfare of stockholders
* Managing the flow of funds
* Maintaining access to markets and managing risk
* The implications of efficient markets
Time value of money
* Simple present value concepts
* Present value formulas and examples
* Simple future value concepts
* Future value examples
Time value applications
* Prices and returns of bonds and equities
* Bond amortization
Capital budgeting
* Merits of using net present value vs. internal rate of
return
* Special capital budget problems
* Examples: capital rationing, projects of different lives
* After-tax weighted average cost of capital as discount rate
* Calculating cost of debt, equity and cash flows on
investments
The financing decision
* Modigliani and Miller propositions
* Impact of bankruptcy and ownership structure on financing
decisions
* Impact of leverage on firm valuation
Course Fees
VAT to be included at the local rate, if applicable. Costs
shown are per delegate inclusive of refreshments, lunches and
seminar materials. Cost of accommodation is not included.
GBP 2000
Certificates of Participation
Certificates of participation are remitted to course
participants upon request. |
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