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

• A real-world approach to the discipline

• Numerous examples based around market data

• Contemporary approach drawing on recent market developments

• Integration with spreadsheet modeling

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 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

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.

Organizational Impact 

By sending delegates on the 5 Day MBA in finance organization will benefit by:

• Providing delegates with a concentrated and focused program 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

• Emphasizing the role of risk in decision making

• Explaining how risk can be measured and quantified

Personal Impact

Delegates will acquire the following skillset:

• The ability to actively participate in financial 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 utilize 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

Outlines

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 Walkthrough 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

  • Modigliani 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