The Oxford 5 Day MBA in Finance

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 seminar demystifies the complex world of finance and provides the tools and insights that you will need to meet your own professional goals and the greater goals of the organisations you serve.

Seminar 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 pro’s and con’s of different types of financing?
• What factors must be considered in deciding on a dividend policy?
• What is the exact nature and scope of the issue to be analyzed?
• What is meant by “risk”?
• What products are available to manage risk?
• Why is correlation so important in managing risk?
• What are the important relationships in an annual report?
• Which specific variables, relationships, and trends are likely to be helpful in analyzing an annua;l report

Who Should Attend?

Non-Financial business professionals from all functions of an enterprise will benefit from this intensive seminar which teaches the key financial issues covered in international MBA programmes. Also Financial professionals wanting an update or a ‘refresher’ of their knowledge will also benefit from attending.

Competencies Emphasized

• Understanding all aspects of the world of Finance
• Obtaining the right information for the given situation
• Choosing the most appropriate tools to determine the correct required result
• Knowing the strengths and limitations of these tools
• Viewing all analysis, planning and financial decisions in the context of their impact on shareholder value

Personal Impact

Delegates will acquire the ability, when involved in decisions about business investment, operations, or financing, to choose the most appropriate tools from the wide variety of techniques available to generate quantitative answers. Selecting the appropriate tools from these choices is clearly an important part of the analytical task. Yet, experience has shown again and again that first developing a proper perspective for the problem or issue is just as important as the choice of the tools themselves. Then being able to use said tools is where the value comes.

Organisational Impact

This seminar provides an integrated blending of concept and practical application. The financial/economic dimensions of business management are challenging. Now the organization can go beyond the understanding of the financial statements to real financial management.

Training 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 bring laptop computers to the seminar.

Seminar Outline

Day 1 : An introduction to the Financial Markets

• An introduction to the equity markets:
  • IPO’s
  • Market Indices
  • International Equity Market Links
• An introduction to bond markets
  • Long Term versus Short Term
  • Treasury versus Corporate
  • Types of Bond
• An introduction to the FX market
  • The spot and forward market
  • Exchange Rate trends and linkages
  • Carry Trades
• An introduction to the Derivatives Market
  • Futures
  • Options
• 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 weighted average cost of capital (WACC)
  • The Ameritrade Case
• Investment Appraisal using the Net Present Value approach
  • The importance of the cost of capital
  • Scenario analysis
• Payback and adjusted Payback
• The Internal Rate of Return (IRR) approach
  • A practical application of the IRR approach.
  • Pitfalls in using the IRR approach
• Real Options

Day 3: A walk through 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
  • Modiglianni 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

Oxford Management Centre
John Eccles House
Robert Robinson Ave
Oxford Science Park
Oxford
OX4 4GP
United Kingdom

Tel: +44 1865 338088

Fax: +44 1865 338100

email info@oxford-management.com