Introduction to Managerial Finance
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Introduction to Managerial Finance Course
Introduction:
In order to drive organizational success, business leaders and managers from various functions must possess a solid understanding of finance. Finance plays a critical role in comprehending the inner workings of an organization, and it is crucial for professionals to have a commercial mindset to actively participate in financial discussions and contribute to decision-making processes.
The Introduction to Managerial Finance training course is specifically designed to provide participants with a practical foundation in modern finance. By enrolling in this course, you will develop the necessary tools to comprehend financial statements and reports, corporate finance principles, and fundamental concepts such as the time value of money. Furthermore, you will learn how to apply these concepts within your specific business context, including forecasting methods, project evaluation techniques, creating realistic performance plans, and monitoring financial outcomes. By enhancing your financial insight, you will be able to make more informed contributions to organizational discussions and decisions, thereby increasing your managerial impact.
This comprehensive course covers the core principles of corporate finance. Key topics include the role of corporations and financial managers, the concept of time value of money, valuation techniques, capital budgeting, hurdle rates, capital structure considerations, and dividend policy.
By completing this training course, you will acquire the knowledge and skills necessary to navigate the financial aspects of your organization effectively. You will be equipped to analyze financial data, evaluate investment opportunities, make informed financial choices, and contribute to the overall success of your organization. With a stronger financial acumen, you will be well-positioned to drive strategic decision-making and enhance the financial performance of your business.
Course Objectives:
By the end of the Introduction to Managerial Finance training course, you will:
- Make more informed managerial and investment decisions
- Develop a deeper understanding of financial reports and the ability to make more informed and powerful contributions to organizational discussions
- Critically evaluate investment projects and opportunities
- Speak the international language of business: finance
Who Should Attend?
Introduction to Managerial Finance training course, is geared at:
- Non-financial managers, and is therefore suited to anyone in a middle or senior managerial or leadership position,
- Those aspiring to move into such a role.
- those working in finance to refresh their knowledge,
Course Outlines:
Financial statement analysis
- Interpret the nature of a firm from a managerial finance perspective
- Identify the difference between finance and accounting
- Interpret the key components of the financial statements
- Demonstrate how business transactions affect the financial statements
- Calculate key financial, operating, and leverage ratios
- Assess the financial health and operational effectiveness of a firm using financial and operating ratios
- Identify the various sources and uses of a firm's funds
Financial forecasting
- Interpret the relationship between a firm's growth and its funding needs
- Apply financial statement analysis and financial ratios to a firm's funding needs
- Assess the financial dynamics and funding needs of a given firm
- Compile a firm's pro forma balance sheet and income statement
Discounted cash flow analysis
- Interpret the concept of the cost of capital and discounting cash flows
- Calculate the net present value of a stream of cash flows
- Interpret the difference between a corporate investment project's incremental earnings and its free cash flows
- Calculate a corporate investment project's free cash flow (FCF)
- Apply the concepts of sunk cost, cannibalization, depreciation, and the tax treatment of losses to a valuation model
- Apply fundamental valuation in the real world
Optimal investing
- Compare an investment project's value under different assumptions
- Distinguish between sensitivity, break-even, and scenario analysis
- Calculate scenarios using Excel's Data Table tool
- Assess quantitative and qualitative assumptions used to draw up cash flow projections
- Identify key challenges when compiling valuations and forecasts in the real world
Funding strategies
- Identify the various sources of funding
- Interpret the concept of the opportunity cost of capital
- Apply investor behavior and characteristics of the stock market to the calculation of the cost of capital
- Calculate an investment's required rate of return by using the CAPM formula
- Calculate a firm's weighted-average cost of capital
- Determine the optimal capital structure, considering interest tax shields and the costs of financial distress
Valuing entire companies
- Calculate a firm's value by applying the principles of fundamental valuation
- Calculate a firm's terminal value
- Interpret the relationship between fundamental and market values
- Interpret the efficiency of the market in valuing shares
- Apply valuation by comparable to value a firm's shares
- Identify the key characteristics of the M&A market
- Evaluate a takeover offer by applying the concepts of valuation