Introduction
This course offers insights into the primary factors essential to the successful financial management of corporations. In an uncertain economic environment, managers must know the power and importance of key stakeholders – shareholders, bankers, customers and suppliers. Managers must efficiently allocate resources while recognising environmental and ethical concerns, controlling risks, and effectively communicating strategy and performance.
This course will introduce delegates to the terminology and techniques commonly used in corporate finance and provide significant experience in terms of content, discussion, and case study work.
This course will feature:
- Relevance and importance of finance to the success of your business
- Sources and types of finance that are most relevant to your business
- Meaning and importance of corporate governance to the effective financial management of your business
- Techniques available to determine the most profitable and worthwhile investments for your business
- Effective ways to control the financial risks of your business
Objectives
- Understand and evaluate corporate financial reports.
- Determine sources of capital and capital structure
- Identify and appraise wealth-generating investments
- Recognise, quantify, and control financial risk
- Apply principles of good corporate governance
Content
Finance and financial information
- The meaning and importance of finance in business
- The importance of financial information – internal and external
- The corporate annual report and the financial statements
- Capital employed: long–term assets and working capital
- Analysing financial statements for profitability, liquidity, efficiency & financial structure
- Investment ratios and market data sources
Financing the Business and Capital Structure
- Sources and types of long-term finance
- Sources and types of short-term finance
- Calculating the Cost of Equity – what your shareholders expect
- Calculating the Cost of Debt – it depends on your credit rating
- The weighted average cost of capital (WACC)
- Choosing the best mix of equity and debt
CAPEX – Analysis of Investment Decisions
- Growing your business with new investment projects
- Preparing spreadsheet forecasts for investment appraisal
- Basic appraisal techniques: Accounting Rate of Return (ARR) and Payback
- Discounted cash flow appraisal techniques: NPV and IRR
- Capital Rationing and the Profitability Index (PI)
- Dealing with risk in investment appraisal
Financial Risk Management
- Risk and uncertainty in business
- How to manage risk – the four Ts
- Financing risk and operating risk
- Foreign currency risk management
- Interest rate risk management
- Role of Internal Audit, Audit Committee, and Chief Risk Officer
Corporate Governance
- Recognising the needs of stakeholders
- The origins and development of corporate governance
- Corporate governance codes and regulation
- The role of the Board of Directors
- International corporate governance and the OECD
- Emerging trends in corporate governance
