Corporate Finance

Aims

The aim of this module is to develop an understanding of modern corporate finance so that the corporate manager, the investment banker and the financial analyst will have the conceptual foundations for making informed corporate assessments of key financial decisions. The course puts significant emphasis on the interactions between capital markets and the value of the underlying real assets.

Learning Outcomes

The course will allow participants to:

• Appreciate the implications of modern finance theory on practical corporate finance issues.
• Develop analytical skills to evaluate complex corporate finance decisions.
• Develop analytical tools for estimating the cost of equity, debt and total capital for private and listed companies.
• Understand the perspectives of corporate managers, shareholders, financiers and financial intermediaries of key financial decisions.
• Become familiar with contemporary corporate finance practice and market trends evolving in different countries.

Knowledge and Understanding

On completing the course the participants will:

• Know the key considerations affecting corporate finance decisions.
• Understand the principles of portfolio theory and asset pricing;
• Understand the context and structure of corporate finance transactions.
• Be equipped to develop and execute complex corporate finance deals.
• Be equipped to compete for management positions in corporate and financial institutions.
• Be able to estimate the cost of capital
• Be able to assess best funding propositions
• Be able to assess takeover targets

Content

• Fundamentals of capital budgeting
• Capital Asset Pricing Model
• Arbitrage Pricing Theory
• The Weighted Average Cost of Capital
• Estimating the cost of capital
• Capital structure
• Debt and taxes
• Capital budgeting and valuation with leverage
• Valuation and financial modeling: A case study
• Raising Equity Capital
• Mergers and Acquisitions