Course details

Overview ?

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.

Oxford Management Centre 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