Finance for Managers, an essential MBA course designed to equip future business leaders with the foundational knowledge and skills required to navigate the complex world of corporate finance. As a manager, understanding financial concepts and tools is paramount to making sound strategic decisions that drive business success. This course will delve into key topics such as financial statement analysis, capital budgeting, cash flow management, risk assessment, and investment evaluation. By the end of this course, you will be adept at making informed financial choices that foster growth, create value, and promote long-term sustainability for your organization. So, let's embark on this exciting journey to financial mastery, as we transform you into a confident and effective manager in the ever-evolving global business landscape.
Course Structure:
1) Introduction to Financial Management
- Financial management overview
- The role of finance in business
- Theories of financial management
- Financial markets and institutions
Theories:
- Agency theory
- Pecking order theory
- Trade-off theory
2) Financial Statement Analysis
- Understanding financial statements
- Ratio analysis
- Common-size analysis
- DuPont analysis
- Limitations of financial statement analysis
3) Time Value of Money
- Present value and future value
- Annuities and perpetuities
- Net present value (NPV)
- Internal rate of return (IRR)
- Capital recovery
4) Valuation Techniques
- Bond valuation
- Stock valuation
- Valuation multiples
Theories:
- Dividend discount model (DDM)
- Free cash flow model
- Relative valuation
5) Risk and Return
- Concept of risk and return
- Portfolio theory
- Capital asset pricing model (CAPM)
- Arbitrage pricing theory (APT)
- Efficient market hypothesis (EMH)
6) Cost of Capital
- Capital budgeting process
- Cash flow estimation
- Capital budgeting techniques
- Capital rationing
Theories:
- Payback period
- Profitability index (PI)
- NPV
- IRR
7) Capital Budgeting
- Capital budgeting process
- Cash flow estimation
- Capital budgeting techniques
- Capital rationing
Theories:
- Payback period
- Profitability index (PI)
- NPV
- IRR
8) Risk Analysis in Capital Budgeting
- Sensitivity analysis
- Scenario analysis
- Monte Carlo simulation
- Decision tree analysis
- Real options
9) Capital Structure and Dividend Policy
- Capital structure theories
- Dividend policy theories
- Stock repurchases and dividend reinvestment plans
Theories:
- Modigliani-Miller theorem
- Trade-off theory
- Pecking order theory
- Residual dividend model
- Dividend irrelevance theory
- Dividend signaling theory
10) Working Capital Management
- Components of working capital
- Cash management
- Inventory management
- Receivables management
- Payables management
11) Financial Planning and Forecasting
- Financial planning process
- Pro forma financial statements
- Sales forecasting
- Operating and financial leverage
- Break-even analysis
12) Mergers, Acquisitions, and Corporate Restructuring
- Types of mergers and acquisitions
- Valuation in mergers and acquisitions
- Synergy and sources of value creation
- Corporate restructuring strategies
Theories:
- Divestitures
- Spin-offs
- Leveraged buyouts