Corporate Finance and Valuation

As businesses grow and expand, there is an inherent need to assess whether they are creating value for the shareholders. Although businesses may have achieved growth and a reasonable return on investment, creating value is the result of a sustainable process of value creation. This programme is designed to cover the concept of value creation and the determinants of value of a business.

The course provides practical insights into the value creation dynamics and its application in running a business. The module concludes with demonstrating the linkages between business strategies and sustainable value creation, through a real life case study.

While there are procedures and formulas, they need to be integrated with good business judgments.

Objectives :

1. Calculate and compare advantages and weaknesses of capital budgeting techniques, especially the NPV and IRR of a project.
2. Demonstrate how different qualitative factors impact on value.
3. Calculate free cash flow forecasts and the challenges in determining their proper use
4. Calculate the terminal value of a business and determine its appropriate use
5. Discuss Relative Valuations Techniques among comparable companies
6. Explain why WACC is used to discount company free cash flows
7. Discuss other valuation methods including CAPM and Arbitrage Pricing Theory
8. Determine the optimal capital structure of a company and its dividend policy

Methodology

The programme will be delivered through a well-structured schedule with the academic content being followed by case studies to demonstrate the applicability of the concepts. The case studies on valuation will be thought provoking and will contribute significantly to the overall learning experience.

Course Contents :