Business Finance - Your Learning Journey

Unit 1: Key financial statements

  • Acquire an overview of the three main financial statements – the balance sheet, the income statement and the cash flow statement – and key financial and accounting concepts. 
  • Use real examples to see how these theories are applied to financial statements.

Unit 2: Financial analysis

  • Learn how to use ratios to compare company performance to its own history or to other companies.
  • Calculate and interpret key ratios for your own business and identify managerial implications, for example when dealing with customers and suppliers.

Unit 3: Risk & capital markets

  • Examine the relationship between risk and return using concepts such as the capital asset pricing model, risk-free rates, credit spreads, market risk premium, and company beta.
  • Learn how to assess the risk versus return for debt and equity assets, and to calculate the WACC for your company or unit.

Unit 4: Managerial finance & value creation

  • Understand ROIC’s role in value creation and the links between different drivers available to management to improve operational performance: profitability, efficiency, working capital, and leverage. 
  • Compute your firm’s ROIC and identify areas where you can help to improve it.

Unit 5: Time value of money

  • Reflect on the time value of money and discover tools and practical applications where it can be implemented, such as with bond valuations, loans, leasing, and mortgages.
  • Compute parameters such as interest rate, payment and borrowing amount for a bank loan, given a set of constraints.

Unit 6: Capital budgeting tools

  • Discover project valuation criteria such as net present value, internal rate of return, payback and the profitability index.
  • Learn how to: choose between investment projects; allocate capital to projects that add value; decide between capital expenditure or cost reduction projects; and evaluate brands.

Unit 7: Project valuation tools & application

  • Study how to forecast cash flows in real projects and to model them in Excel.
  • Work on a case study with a “go or no go” decision. Discuss sensitivity analysis and risk thinking.

Unit 8: Strategic investment decisions

  • Observe managerial decisions and the commercial implications of NPV regarding investment project valuation. 
  • Understand how to structure projects and how to assess and mitigate their risks.
  • Learn how financial tools can be used for day-to-day decisions such as pricing, bidding or supplier negotiation.
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