McTimothy Associates

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Why Attend

Course Outline

  • Introduction to corporate finance
    • Role and scope of corporate finance
    • Overview on operating decisions: managing current assets and current liabilities
    • Overview on investing decisions: opportunities and their benefits
      • Internal investments: replacement project, expansion projects, new products or markets
      • External investments: stocks, bonds, mergers and acquisitions
    • Overview on financing decisions: sources and their costs
      • Internal financing: preferred and common stocks
      • External financing: straight bonds, convertible bonds, sukuks, term loans and revolving lines of credit
  • Working capital and the financing decision
      • Deciding between liquidity versus profitability
      • Financing current assets: deciding between certainty and profitability
      • Working capital management styles: aggressive versus conservative
      • The cash conversion cycle
      • Cash management: accelerating collection and decelerating disbursements
  • Analyzing capital investment decisions
      • Know the 5 key principles in capital budgeting process
      • Building accurate cash flows forecasts for a correct conclusion
      • Calculating payback, NPV, discounted payback, and IRR using Excel
      • How to choose between projects with different useful lives
      • Capital rationing: allocating limited funds on available projects
      • Mistakes managers make when evaluating capital projects
  • Cost of capital and the optimal capital structure
      • The capital asset pricing model as a tool to calculate required return on equity
        • Choosing Beta: to identify project’s sensitivity
        • Applying equity risk premium: to calculate return in excess of risk free rate
      • Calculating the correct Weighted Average Cost of Capital (WACC) for a project
      • Modigliani-Miller regarding capital structure
      • Calculating the optimal capital structure
      • Why company’s actual structure fluctuates around its target capital structure
      • Factors that affect dividend policy
      • Methods of determining dividend policy:
        • Stable dividend policy: target dividend rate
        • Constant dividend rate
        • Residual dividend method
      • Effect on stock price after dividend declaration
  • Financial forecasting, analysis and valuations
      • Understanding the business: Michael Porter’s 5 elements
      • Revenue forecasting: bottom up versus top down
      • Techniques for forecasting costs and expenses
      • Approaches to balance sheet modeling
      • Methods for public equity valuation: the when and why
        • Discounted dividend valuation
          • Estimating the growth rate
        • Free cash flow valuation: free cash flow to firm and free cash flow to equity
        • Market based valuation: price and enterprise value multiples
      • Valuation conclusion used for investing decisions: invest in undervalued equities
      • Valuation conclusion used for financing decisions: issue your overvalued equities

$ 167.59

Event Date: 15/09/2022 – 17/09/2022


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