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 controls, 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 course 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

 

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

 

SEMINAR 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
• The spot and forward market
• Exchange Rate trends and linkages
• Carry Trades
• Futures
• Options
• An introduction to the FX market
• An introduction to the Derivatives Market
• 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 Ameritrade Case
• The importance of the cost of capital
• Scenario analysis
• The weighted average cost of capital (WACC)
• A practical application of the IRR approach
• Pitfalls in using the IRR approach
• Investment Appraisal using the Net Present Value approach
• Payback and adjusted Payback
• The Internal Rate of Return (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