Corporate Finance and Financial Decision Making
Make sound financial decisions with confidence.
About this course
Make sound financial decisions with confidence. Over seven days you will work through the core tools of corporate finance: the time value of money, risk and return, valuation, the cost of capital and capital budgeting with NPV and IRR.
You will also look at working capital, financing choices, capital structure and dividend policy, using practical cases and spreadsheet exercises so you can judge investments and explain your recommendations clearly to management. An Alalamia certificate is awarded on completion.
What you'll learn
- Apply the time value of money to valuation and investment problems
- Evaluate capital projects using NPV, IRR, payback and the profitability index
- Estimate the cost of debt, the cost of equity and the weighted average cost of capital
- Analyse financial statements with ratios to judge performance, liquidity and risk
- Manage working capital, including cash, receivables, inventory and payables
- Compare debt and equity financing and their effect on capital structure
- Explain dividend policy and its link to shareholder value
- Present financial recommendations clearly to decision makers
Curriculum
- The goals of the firm and shareholder value
- Agency issues and corporate governance
- Financial markets and institutions
- The finance function in management decisions
- Reading the income statement, balance sheet and cash flow statement
- Profitability, liquidity and solvency ratios
- Efficiency and asset management ratios
- Cash flow analysis
- Future value and present value
- Annuities and perpetuities
- Compounding periods and effective rates
- Loan and lease calculations
- Measuring return and risk
- Diversification and portfolio risk
- The capital asset pricing model
- Risk in high-inflation and emerging markets
- Bond valuation and yields
- Share valuation using dividend models
- Valuation using multiples
- Cost of debt
- Cost of equity
- Weighted average cost of capital
- Setting hurdle rates for projects
- Identifying relevant cash flows
- Net present value and internal rate of return
- Payback, discounted payback and profitability index
- Ranking projects under capital rationing
- Sensitivity analysis
- Scenario analysis
- Break-even analysis
- Inflation and currency effects on projects
- The cash conversion cycle
- Cash management and forecasting
- Receivables and credit policy
- Inventory and payables management
- Debt versus equity financing
- Financial and operating leverage
- Choosing a capital structure
- Leasing as a source of finance
- Dividend policy and its signals
- Share buybacks
- Value drivers and economic value added
- Communicating financial recommendations
Who it's for
Finance managers, accountants, analysts and business leaders who evaluate investments and shape financing decisions.
Before you start
- A working knowledge of accounting and financial statements
- Comfort with spreadsheets for financial calculations
Part of these Alalamia diplomas
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