FINANCE FOR EXECUTIVES (CORPORATE FINANCE)
A TWO DAY COURSE FOR EXECUTIVES AND OTHERS WHO HAVE A NEED TO UNDERSTAND AND USE CORPORATE FINANCE
This course explores elements of corporate finance of relevance to executives. It considers the role of the balance sheet and the importance of reviewing cash flow and profitability together. The major accounting ratios will be reviewed including return on capital employed (ROCE) and gearing. The course will also review the concept of the time value of money and discounted cash flow. Net present value (NPV) and internal rate of return (IRR) will be explored and their importance in corporate finance and project appraisal. The course will review sources of corporate finance covering the difference between equity and debt and approaches to choosing between them. Finally methods for valuing shares and corporate value will be reviewed.
Participants will leave the course with a clearer understanding of how organisations are financed and how their financial performance is assessed.
Financing an enterprise:
Sources of finance - equity and debt
Equity - ordinary shares and preference shares
Debt - loans and bonds; variations
Choosing between debt and equity:
Cost of capital and the weighted average cost of capital
Gearing and interest cover
Project & corporate finance:
Risk reward factors - risk premiums
The opportunity cost of capital
The time value of money, future values and present values - compounding, discounting, annuities and perpetuities
The capital asset pricing model and risk in equities
Evaluating investment projects - net present value (NPV) and internal rate of return (IRR)
Financial markets & evaluating corporate performance:
Maintaining shareholder value through value based management:
Opportunity cost of capital and performance spread
Total shareholder return (TSR)
A mixture of lecture input, discussion and practical work will be used.