Corporate Financial Planning,

Budgeting & Costing Control  

Course Objectives

At the end of this training course, you will learn:

·        The Concept of Agency Theory

·        Risk Management

·        Managing and Controlling Cash Flow

·        Time-adjusted Valuation Methods

·        Financial Projections

·        SWOT Analysis

Course Outline

Corporate Financial Planning              

·        Strategic Planning

·        The Objective of the Firm – meeting Shareholder & Stakeholder Objectives

·        Agency Theory – the relationship between Shareholders & Management

·        Creative Accounting and the Case of Enron

·        Financial Management & Financial Planning – the Scope, Role & Responsibilities of Financial Management

·        Preparing a Financial Plan – the Master Budget

·        Forecasting Future Cash-flows and Financial Modelling

·        Time Series Analysis, Correlation & Regression

Financing the Plan                                          

·        Sources of Finance – Long Term & Short Term

·        Evaluation of the Types of Finance - Equity vs. Debt Finance

·        Hybrid Finance & Financial Engineering

·        The Dividend Decision

·        The Cost of Capital and Weighted Average Cost of Capital (WACC)

·        Capital Asset Pricing Model (CAPM)

·        Accounting Rate of Return (ARR)

·        Net Present Value (NPV), Internal Rate of Return (IRR) Capital Rationing & Payback

Preparing & Managing Budgets to Support the Financial Plans

·        Definition of Budgets, the Budgetary Process and Budgetary Control

·        Types of Budgets-Fixed, Flexible, Incremental and Zero Based

·        The Purpose / Benefits & Problems / Limitations of Budgets

·        Setting / Implementing Effective Budgets - Eliminating the Problems

·        Responsibility Accounting and Absorption Costing

·        Activity-Based Budgeting / Costing (ABB, ABC)

·        Variance Analysis, Cost Behaviour, Break Even Analysis & Sensitivity / What If Analysis

·        What-If Analysis combined with Du-Pont Analysis

Managing and Controlling Cash Flow to Support the Financial Plan

·        Cash vs. Profit & The Cash Conversion Cycle

·        Calculating and Managing the Cash flow Cycle

·        Cash Flow Ratios

·        Working Capital

·        The Cost of Maintaining Working Capital

·        Maintaining the Optimum level of Working Capital

·        Working Investment Ratios

·        Preparing a Monthly Cash Flow Forecast

Managing Financial Risk        

·        Risk Management & Types of Risk

·        Identifying Risk – SWOT Analysis

·        The Major Quantitative & Qualitative Risks Facing Companies

·        Establishing a Risk Management Strategy

·        Financial Risk Management & Hedging Techniques

·        Managing Exchange Rate & Interest Rate Risk

·        Derivatives-Forwards, Futures, Options & Swaps

·        Risk Management Glossary of Terms