Corporate Finance Fundamentals

I. Introduction

In this dynamic field, the heartbeat of business is measured not just in products sold or services rendered, but in the careful orchestration of capital, investment, and risk management. This discipline is not just about crunching numbers; it’s about strategic foresight and calculated risk-taking. Through financial analysis, forecasting, and valuation techniques, corporate finance professionals unravel the complexities of business decisions, empowering organizations to seize opportunities and mitigate threats.

II. Course Objectives:

At the end of this course participants are expected to:

• Develop a solid foundation in corporate finance principles, including time value of money, risk and return, and capital budgeting techniques.

• Learn how to evaluate investment opportunities, analyze project cashflows, and make capital budgeting decisions to maximize long-term profitability.

• Explore different sources of capital, such as equity and debt, and understand the impact of capital structure decisions on firm value and cost of capital.

• Understand the factors influencing dividend decisions and how dividend policy affects shareholder wealth and firm valuation.

• Discover techniques for identifying, assessing, and managing financial risks, including market risk, credit risk, and operational risk.

III. Course Highlights:

MODULE 1: Introduction to Corporate Finance

• Overview of corporate finance principles and objectives

• Role of corporate finance in value creation and shareholder wealth maximization

MODULE 2: Time Value of Money

• Understanding the time value of money concept

• Discounted cash flow (DCF) analysis and its application in corporate finance

MODULE 3: Risk and Return

• Measurement and assessment of risk and return

• Capital asset pricing model (CAPM) and risk-adjusted return analysis

MODULE 4: Capital Budgeting

• Techniques for evaluating investment projects

• Net present value (NPV), internal rate of return (IRR), and profitability index (PI)

MODULE 5: Cost of Capital

• Determination of the cost of equity, cost of debt, and weighted average cost of capital (WACC)

• Application of cost of capital in capital budgeting and valuation

MODULE 6: Capital Structure

• Analysis of capital structure theories

• Trade-off theory, pecking order theory, and Modigliani-miller theorem

MODULE 7: Dividend Policy

• Factors influencing dividend decisions

• Dividend irrelevance theory and dividend signaling hypothesis

MODULE 8: Financial Risk Management

• Identification and measurement of financial risks

• Hedging techniques and risk management strategies

MODULE 9: Corporate Valuation

• Methods for valuing companies and projects

• Discounted cash flow (DCF) valuation, comparable company analysis, and precedent transactions analysis

IV. Target Audience:

• Finance Professionals

• Business Managers

• Consultants and Advisors

• Investors and Shareholders

• Entrepreneurs and Startups