Overview

This comprehensive course is specifically designed to provide you with a deep understanding of the financial decision-making process in modern corporations. With a focus on increasing shareholder and firm value, the course covers crucial decisions that contribute to creating and maximizing value. You will learn how to analyze, evaluate, and execute capital budgeting and working capital management as investment decisions, capital structuring and restructuring as financing decisions, and dividend distribution decisions. The content of the course is meticulously planned to equip you with the skills necessary to make sound financial decisions that will benefit your organization in the long run. Upon completion of the course, you will be able to confidently evaluate and execute various financial decisions that are vital to the success of your organization. After completing this course, a learner will be able to: 1. Gain a clear understanding of how the concept of the time value of money applies to specific financial decisions. 2. Analyze how different types of risk impact potential returns and investment strategies in financial decision-making. 3. Construct comprehensive capital budgeting scenarios and assess projects based on their cash flows. 4. Defend the liquidity-profitability trade-off in working capital management, considering the level and financing of current assets. 5. Investigate the relationship between a firm's capital structure choices and value, focusing on the interplay of debt, equity, and risk to assess the trade-offs. 6. Formulate optimal dividend policy for firms basis their life-cycle stage and growth opportunities.

Syllabus

Course Orientation

This comprehensive course is specifically designed to provide you with a deep understanding of the financial decision-making process in modern corporations. With a focus on increasing shareholder and firm value, the course covers crucial decisions that contribute to creating and maximizing value. You will learn how to analyze, evaluate, and execute capital budgeting and working capital management as investment decisions, capital structuring and restructuring as financing decisions, and dividend distribution decisions. The content of the course is meticulously planned to equip you with the skills necessary to make sound financial decisions that will benefit your organization in the long run. Upon completion of the course, you will be able to confidently evaluate and execute various financial decisions that are vital to the success of your organization.

Financial Decision Making

Module 1 will familiarize students with the fundamentals of finance, emphasizing its implication in real world scenarios. In this module, students will learn financial concepts related to the time value of money, which forms an invaluable part of the decision making process in corporate finance.

Financial Decision I: Investment Decisions

In Module 2 we will discuss investment decision concepts related to the calculation of risk and return for assets which will allow the participants to understand the concept of risk analysis with respect to corporate investment decisions. The Module will familiarize the participants with the financial concept of a company’s cost of debt and cost of equity & teach them the nuances of its calculations.

Financial Decision I: Investment Decisions

Module 3 will demonstrate to the participants the vital techniques of Capital Budgeting utilized to decide whether to accept or reject financial projects in a business.

Financial Decision I: Investing Decisions

Module 4 will dive into the corporate financial topic of Working Capital Management wherein the participants will learn how businesses sustain their operational efficiency & liquidity through the effective management of their working capital cycles and daily cash flow operations.

Financial Decision II: Financing Decisions

Module 5 will discuss the viable options that business can utilize for long term financing namely Debt v/s Equity. This will enable participants to understand how organizations structure their capital to optimize the benefits. The Module will acquaint participants with the theoretical aspects of Capital structure, that explores its impact on the valuation of the business.

Financial Decision III: Dividend Decisions

Module 6 provides a conclusion to the corporate financial decision making process by providing the participants an overview of the concepts of Dividend Payout, Stock options, Bonus issue, Shares split and other practical aspects of the stock market side of a business.