COURSE 3: FINANCE FOR NON-FINANCE MANAGERS
Overview:
This course is designed to be a starting point for anyone interested in learning more about stock markets, valuation, or corporate finance. We’ll go over all of the tools and quantitative analysis together, and create a guide to help you comprehend the seemingly complicated judgments that finance professionals make.
By the end of the course, non-finance managers would have a better knowledge of the primary conceptual levers that influence financial decision-making and how they relate to other business sectors.
Target Audience:
• Civil Servants who make or contribute
to decisions with significant financial
implications
·Civil Servants with profit-and-loss
responsibility in marketing, operations,
human resources, engineering, and other
non-financial areas
Course Objectives
By the end of the course, participants would be able to
·Recognize the critical financial levers that influence financial performance.
·Learn how and why finance is concerned with cash flow vs earnings, and why this is important to your business and budget.
·Evaluate and pitch possible projects, and identify strategies to produce and measure value.
·Investigate how financial markets operate and how they affect your company.
·Build a financial awareness that will allow you to make informed decisions in your professional and personal life.
Course Content
• Course Overview and Basic Principles of Financial Valuation Discounting
-Human Nature and the Time Value of Money
-Compounding and Earning Returns Over Time
-Discounting Future Cash Back to the Present
-Discounted Cash Flow (DCF) as the Basis for
All Valuation
·How to Spend Money (Capital Budgeting tools)
-Overview of the Capital Budgeting Process
-Net Present Value (NPV)
-Payback Period
-Accounting Ratios
-Internal Rate of Return (IRR)
-Using All the Metrics Together
·Measuring Cash Creation and Flow
-Financial Statements
-Hunting for Cash Creation
-Working Capital Adjustments
-Depreciation and Capital Expenditures
-Salvage and Terminal Values
-Taxes
-Calculating Free Cash Flow
-Using Capital Budgeting Tools
·How Much Does Money Cost? Evaluating the Cost of Capital
-Debt vs. Equity Financing
-Risk-Free Rate
-Historical Risk and Return
-The Equity Risk Premium
-B eta and the Cost of Equity
-Credit Ratings and Quality Spreads
-Estimating the Cost of Debt
