Introduction
All business entities need finance to survive and thrive. Finance is required from the establishment of a business, converting an idea into reality, launching new products, hiring employees, setting up offices, advertising, and managing day-to-day activities. This perpetual need for finance gives rise to corporate finance, which involves optimal allocation of funds, managing fixed and current assets, evaluating profitability of investment opportunities, and deciding how to finance these investments. Corporate finance deals with making major financial decisions, including investment, financing, and dividend decisions, all of which are crucial for the success of an organization.
Learning Objectives
By the end of this Corporate Finance Course, participants will be able to:
- Understand the importance of corporate finance in the current business environment.
- Calculate the trade-off between risk, return, profitability, and liquidity.
- Identify and choose the best alternatives for raising finance.
- Evaluate various investment opportunities using different techniques.
- Distinguish between profit maximization and wealth maximization.
- Understand capital structure theory and its practical application.
- Comprehend the relevance of dividends and issues in dividend policy.
- Grasp the principles of working capital management.
Training Methodology
This course employs:
- Interactive lecture sessions
- Problem-solving sessions
- Presentations
- Case studies
- Financial modelling
- Group discussions
- Management games Xcelerate Training Institute follows the ‘Do-Review-Learn-Apply’ model to ensure effective and practical learning.
Benefits for Your Organization
Organizations will benefit from:
- Selecting the best alternatives for financing investments.
- Enhancing decision-making and financial efficiency.
- Identifying and mitigating potential financial risks.
- Achieving a balanced trade-off between risk and return.
- Constructing an ideal debt-equity mix and capital structure.
- Minimizing financial costs such as interest rates.
- Maximizing shareholder wealth.
- Gaining a competitive edge over industry rivals.
Benefits for You
Participants will gain:
- Preparation for financial challenges like making financial plans and pitching proposals to investors.
- Knowledge of techniques used to create financial models and evaluate investments.
- Understanding of financial concepts, theories, and their applications.
- Skills to prepare financial reports.
- Ability to identify and mitigate financial risks.
- Enhanced career growth with improved financial management knowledge.
Target Audience
This course is suitable for:
- Budding entrepreneurs and start-up founders
- Financial managers and credit managers
- Departmental heads, managers, and executives
- Financial analysts
- Venture capitalists and investors
Course Outline
Understanding the Basics of Corporate Finance
- Corporate Finance and Finance Functions
- Profit Maximisation vs. Wealth Maximisation
- Time Value and Return Concepts
- Capital Market Theory
- Portfolio Theory: Capital Asset Pricing Model
- Agency Problem
Capital Budgeting
- Need for Investment Decisions
- Investment Evaluation Criteria
- Non-Discounted Cash Flow Methods: Accounting Rate of Return, Payback Period
- Discounted Cash Flow Methods: Internal Rate of Return (IRR), Net Present Value (NPV), Profitability Index
- Estimating Cost of Capital: Cost of Debt, Cost of Preference Capital, Cost of Equity Capital
Capital Structure and Financing Decision
- Relevance of Capital Structure: Net Income Approach, Net Operating Income Approach, MM Hypothesis, Pecking Order Theory
- EBIT-EPS Analysis
- Financial and Operating Leverage
Long-Term Financing
- Capital Market
- Types of Shares: Equity Shares, Rights Issues, Preference Shares
- Debentures
- Asset-Based Financing
- Venture Capital
Dividend Decision and Policy
- Dividend Relevance: Walter’s Model, Gordon’s Model
- Issues in Dividend Policy
- Lintner’s Model of Corporate Dividend
- Forms of Dividend
- Deciding Retention Ratio and Payout Ratio
Working Capital Management
- Operating Cycle and Cash Conversion Cycle
- Fixed and Fluctuating Working Capital
- Determinants of Working Capital
- Liquidity vs. Profitability
- Estimating Working Capital Needs
- Matching, Conservative, and Aggressive Approaches
Corporate Restructuring
- Introduction to Corporate Restructuring
- Mergers and Acquisitions
- P/E and EPS Analysis in Mergers and Acquisitions
- DCF Approach
- Leveraged Buy-Outs
International Financial Management
- Foreign Exchange Market
- Foreign Exchange Risks and Hedging
- Exchange Rate Quotations and Arbitrage
- Forwards, Swaps, and Interest Parity