The Advanced Finance Program

Course Code: FA23

►Course Objective

 

  • How are business strategies developed?
  • How does financial management support strategic development?
  • What is the exact nature and scope of the business problems to be analysed?
  • Which specific variables, relationships, and trends are likely to be helpful in analysing problems?
  • Are there possible ways to obtain a quick ‘ballpark’ estimates of likely outcomes of decisions?
  • How precise an answer is necessary with regards to problem-solving and decision-making?
  • How reliable are available financial data, and how is uncertainty and risk likely to impact on the outcomes of decisions?
  • In economic and financial analysis, what are the implications and relative importance of cash flow as distinct from accounting profit?
  • What limitations are inherent in financial data and the key financial statements, and how will these affect financial analysis?
  • How important are qualitative judgments in the context of decision-making?

 

►Target Audience

 

  • General Management
  • Sales and Marketing
  • Estimating and Costing
  • Operations
  • Engineering
  • Project Management
  • Procurement
  • Logistics
  • Asset Management
  • Human Resources
  • And any other financial and non-financial professionals that need or wish to understand the financial aspects of the strategic decision-making process.

 

►Course Outline

 

DAY 1

An Introduction to the Financial Markets

  • An introduction to the equity markets
  • IPO
  • 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 airlines hedging fuel price risk- the importance of correlation


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Date & Location

Date : 13 January 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 26 May 2019

Duration : 5 days

Place : London

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Date : 24 November 2019

Duration : 5 days

Place : Barcelona - Spain

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