Money and Capital Market

DESCRIPTION

Corporate Finance & Capital Markets is an intensive, sister course to Finance for Lawyers. It is not a law course. This follow on course introduces the additional subjects of corporate finance theory, the cost of capital, business valuation, private equity and a general overview of the capital markets. It is designed to provide delegates with an understanding of how and why companies and markets behave the way they do. The objective is to provide the delegate with a holistic overview and understanding of the major elements of global financial activity.

The course is in the style of a series of presentations with a number of integrated case studies. Delegates are required to carry out a fair amount of financial manipulation and are encouraged to develop their knowledge of spreadsheets in a number of the case studies.

The course is ideal for lawyers and others, who, whilst not working directly in functions requiring a detailed knowledge of finance, need to be familiar with the overall concepts and language used in financial analysis, corporate finance and capital market activities.

It is important delegates have with them a simple calculator to enable them to complete some of the exercises and case studies. A portable computer with spreadsheet software is recommended for completing some of the cases. While this is not a spreadsheet course, the course will provide an opportunity for those delegates who have never used spreadsheets before to extend and improve their knowledge.

Delegates are encouraged to ask questions and develop their knowledge by enquiry. The style of presentation is open and informal.

 

COURSE OUTLINE

Introduction to Financial Mathematics and Project Analysis

o. Introduction to Corporate Finance and Capital One Markets

• Knowing why things happen
• Knowing the drivers of corporate and market behavior
• Understanding the economic and financial risks associated with capital transactions

o. The Time Value of Money

• Interest rate calculation
• Present & future values
• Defining the discount factor
• Exercises: Discounting calculations

o. Net Present Value – Developing the Concept

• NPV’s & varying future cash flows
• Perpetuities & Annuities
• Exercises: Annuities and perpetuities

o. Project Analysis

• Introduction to project analysis
• Developing a forecast of the project cash flows
• Identifying the key risk areas

o. Evaluating Capital Investment Projects

• Discounted cash flow techniques
• Calculating the internal rate of return

 

Basic Corporate Finance Theory, Cost of Capital Overview of Valuation

o. Introduction to Corporate Finance Theory and Cost of Capital

• Estimating the cost of capital
• The cost of debt
• The Capital Asset Pricing Model
• The cost of equity
• Portfolio theory
• The Equity Risk Premium
• Weighting the two estimates
• Mogdiliani Miller and the theory of Leverage

o. Cash Flow Valuation Techniques

• Preparing a forecast
• Identifying the free cash flows
• Completing the valuation

o. Earnings Based Valuation Approaches

• Identifying the appropriate values from the financial statements
• Avoiding the main pitfalls
• The use of peer groups as a control

o. Other Valuation Approaches

• Asset based approaches
• Dividend discounting

 

Private Equity and Introduction to Capital Markets

o. Introduction to Private Equity

• What is private equity?
• Glossary of private capital terminology
• Raising a fund
• Investing the fund
• Creating value for investors
• Realising the benefits
• Structural issues

o. The Need for Growth

• The relationship between listed corporates and private equity
• The four phases of the corporate life-cycle
• Identifying appropriate funding structures
• Recognising the drivers of funding strategies

o. The Private Capital Model Strengths and Weaknesses

• Benefits and problems of private equity

o. Overview of Capital Market Products

• Swaps
• Futures
• Options
• Derivatives

o. Overview of Equity and Debt Markets

• Types of traded debt
• Types of trade equity
• Basics of performance assessment

o. Overview of Investment Fundamentals

• It all comes back to cash flows!
• Investment objectives
• Volatility

o. Conclusion – Overview of the Lessons Learnt

• The need for caution
• Remote event risk
• Identifying all the risks

o. Course summary and close

 

TRAINING METHOD

Presentation

Discussion

Case Study

Evaluation

 

FACILITIES

Training Kit

Handout

Certificate

1 X Lunch

2 X Coffee Break

Souvenir