Strategic Finance Program by LIBA
How do firms decide which projects to fund? What sources of capital can a firm tap? How do investors value such firms? Why do firms forgo the tax-shields associated with debt financing and choose relatively low debt levels?
Finance offers a rigorous analytical framework with which to analyze such financing and investment decisions of individuals and firms. This framework is the result of several decades of research by many scholars, some of whom (Miller, Scholes, Sharpe, Markowitz, Merton) have won the Nobel Prize for their contributions to finance. A study of this framework will help you make value-creating financial decisions for yourself and your firm.
Participants will learn in this class how the decisions of a company affect shareholder value. To understand this perspective, you will study basic principles of financial economics: time value of money, law of one price, valuation of debt and equity securities, discounted cash flow as a foundation for stock prices, the impact of diversification and leverage on portfolio risk, the relationship between risk and expected return in securities markets, and capital market efficiency. You will use these principles to analyze capital investment decisions by estimating cash flows and discounting them at the appropriate cost of capital. You will also study how shareholder value is affected by a firms financing decisions, such as the choice of using debt or equity capital.
Why you should attend the course?
Finance is critical to the success of a business entity for-profit or otherwise. Financial decisions are an integral part of strategic planning that are indispensable in the deployment and effective allocation of resources to achieve the entity's long- and short-term objectives.
Who is it for?
The course is designed for managers who recognize the need to strengthen their strategic finance skills in terms of developing and implementing successful finance strategies and aligning financial strategy within overall business strategy.
Course learning outcomes:
Evaluate financial performance by analyzing financial statements with key ratios, trends, and industry benchmarks
Evaluate capital investment projects by estimating the cost of capital and risk-adjusted net cash flows using appropriate capital budgeting principles and tools.
How this will be assessed?
Using annual reports from listed companies like Infosys, TVS Motors, Tata Motors, Orient Green Power Co. Ltd., etc.
Through mini case studies on capital budgeting.