Introduction

It is crucial that today’s business professionals 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 products, and they must have the know-how to navigate the financial systems that have a significant impact on their professional responsibilities.

Eourpean quality has created the 5 Day MBA in Finance 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.

The highlights of the seminar include:

• Extensive and deep coverage of the subject area
• Real world approach to the discipline
• Numerous examples based around market data
• Contemporary approach drawing on recent market developments
• Integration with spreadsheet modelling

Seminar Objectives

The seminar provides delegates with the tools required to find better answers to questions such as:

• What is the appropriate discount rate to be used in investment appraisal?
• What are the “pros” and cons’ of different types of financing?
• What factors must be considered in deciding on a dividend policy?
• What is the exact nature and scope of the issue to be analyzed?
• What products are available to manage risk?
• Why is correlation so important in managing risk?
• Which specific variables, relationships, and trends are likely to be helpful in analyzing an annual report

Training Methodology

 Using a combination of lectures, group exercises and individual exercises with practical applications, the delegates will gain both a theoretical and practical knowledge of the topics covered. The emphasis is on the “real world” and as a result delegates will return to the workplace with both the ability and the confidence to apply the techniques learned.

Delegates are requested to please bring a notebook PC to the seminars.

Organisational Impact

By sending delegates on the 5 Day MBA in finance organisation will benefit by:

• Providing delegates with a concentrated and focused programme in finance addressing key topics found on MBA’s in finance throughout the world
• Updating IT skills by demonstrating the use of financial software in assisting in the decision making process.
• Updating delegates with recent developments in risk management
• Providing exposure to numerous annual reports and real life cases
• Emphasising the role of risk in decision making
• Explaining how risk can be measured and quantified

Personal Impact

Delegates will acquire the following skill set:

• The ability to actively participate in  finance decision making
• An appreciation of the relative merits of varying asset classes.
• Recognition of the importance of risk in determining the cost of capital
• An ability to utilise sophisticated investment appraisal techniques
• An appreciation of the key items from an annual report and recognition of important ratios and linkages
• Recognition of the appropriate tool to manage risk

Who Should Attend?

• Professionals integral to the decision making process
• Non-Financial business professionals managing who have been promoted to financial positions
• Financial professionals wanting an update or a “refresher” of their knowledge
• Junior managers working in the finance area
•  

Programme Outline

Day 1 – An Introduction to the Financial Markets

• An introduction to the equity markets:
  • IPO’s
  • Market Indices
  • International Equity Market Links
• An introduction to bond markets
  • Long Term versus Short Term
  • Treasury versus Corporate
  • Types of Bond
• An introduction to the FX market
  • The spot and forward market
  • Exchange Rate trends and linkages
  • Carry Trades
• An introduction to the Derivatives Market
  • Futures
  • Options
• The link between risk and return

Day 2 – Evaluating Investment Opportunities

• The Markowitz model of Portfolio Risk
• The Capital Asset Pricing Model
  • A practical application of the CAPM to a range of companies
• 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 weighted average cost of capital (WACC)
  • The Ameritrade Case
• Investment Appraisal using the Net Present Value approach
  • The importance of the cost of capital
  • Scenario analysis
• Payback and adjusted Payback
• The Internal Rate of Return (IRR) approach
  • A practical application of the IRR approach
  • Pitfalls in using the IRR approach
• Real Options

Day 3 – A Walk through an Annual Report

• The Balance Sheet
• The Income Statement
• The Cash Flow Statement
• Ratio Analysis
• A practical application of Ratio Analysis:
  • Apple v Microsoft
  • Next v Tesco
  • Easyjet v British Airways
• Forecasting Sales
• The cost of sales approach

Day 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

Day 5 – Risk Management

• Hedging Exchange Rate risk using:
  • the forward market
  • the options market
  • zero cost collars
• Hedging commodity price risk using:
  • Options
  • Futures
• Practical Application of hedging and the importance of correlation