Corporate Finance

INTERNATIONAL TRAINING ON CORPORATE FINANCE

COURSE BACKGROUND

Corporate Finance is the backbone of strategic decision-making within any business, focusing on how companies raise capital, invest it to generate returns, and manage their financial resources to maximize shareholder wealth. It encompasses critical areas such as capital budgeting (deciding which projects to invest in), capital structure (determining the optimal mix of debt and equity), and working capital management (managing day-to-day liquidity). Effective corporate financial management is essential for ensuring an organization’s solvency, profitability, and long-term viability, enabling it to navigate market dynamics, fund growth initiatives, and fulfill its strategic vision.

A deep understanding of corporate finance principles empowers financial professionals and business leaders to make astute investment and financing choices that drive value creation. This is particularly crucial in the vibrant and evolving corporate landscape of Kenya and the broader East African region, where businesses constantly seek to optimize their financial strategies, attract both local and international investment, and expand responsibly amidst varying economic conditions.

ECAS Institute offers this “Corporate Finance” course to equip finance professionals, senior managers, business owners, and aspiring executives with the advanced knowledge and analytical tools required to make sound financial decisions that create and sustain corporate value. This program will bridge theoretical concepts with practical application, empowering participants to drive financial performance and strategic growth within their organizations.

COURSE OBJECTIVES OF THE TRAINING

Upon successful completion of this course, participants will be able to:

1. Understand the fundamental goals of corporate finance and the principles of shareholder wealth maximization.
2. Master the concept of Time Value of Money (TVM) and apply it to various financial calculations.
3. Evaluate capital investment projects using robust capital budgeting techniques.
4. Analyze and determine the optimal capital structure for a firm, understanding the cost of debt and equity.
5. Calculate the Weighted Average Cost of Capital (WACC) and use it as a hurdle rate for investments.
6. Develop strategies for effective working capital management to ensure operational efficiency and liquidity.
7. Understand the various sources of short-term and long-term finance available to corporations.
8. Grasp the basics of dividend policy and its implications for shareholder value.
9. Analyze common corporate financial decisions and their impact on a company’s valuation.
10. Navigate ethical considerations and risk management principles inherent in corporate finance.

WHAT YOU WILL LEARN

This course will provide you with the essential financial toolkit to make strategic decisions that directly impact your company’s value and future growth. You will learn to:

• Apply Time Value of Money (TVM) concepts (present value, future value, annuities, perpetuities) to various corporate finance problems.
• Master capital budgeting techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Profitability Index to evaluate investment projects.
• Estimate the cost of equity and cost of debt for a firm.
• Calculate the Weighted Average Cost of Capital (WACC) and use it as a discount rate in investment appraisals.
• Analyze a company’s capital structure and understand the trade-offs between debt and equity financing.
• Manage working capital effectively by optimizing cash, accounts receivable, inventory, and accounts payable.
• Evaluate different sources of long-term and short-term financing (e.g., bank loans, corporate bonds, equity issuance, venture capital).
• Understand dividend policy decisions and their impact on share price and investor expectations.
• Grasp the fundamentals of mergers and acquisitions (M&A) as a corporate growth strategy.
• Identify and mitigate key financial risks faced by corporations (e.g., interest rate risk, foreign exchange risk).
• Interpret the financial implications of strategic business decisions.
• Utilize financial models to support corporate financial planning and analysis.

DURATION AND PROGRAM

This is a structured, advanced training course designed for rigorous analytical application and strategic thinking. The program will feature a blend of expert-led lectures, intensive case studies (analyzing real-world corporate financial decisions from both local and international companies), practical exercises in financial modeling and valuation using spreadsheet software, and group projects focused on developing comprehensive financial strategies. Participants will engage in critical problem-solving, applying corporate finance theories to real business scenarios, and developing the strategic acumen necessary for executive financial roles. The specific duration of the course will be communicated upon registration, tailored to ensure comprehensive coverage and the mastery of advanced corporate finance concepts.

TARGET PARTICIPANTS

This course is ideal for professionals who are directly involved in, or aspire to leadership roles in, corporate financial management, strategic planning, or investment evaluation. It will particularly benefit:

• Corporate Finance Professionals (e.g., Financial Managers, Analysts, Treasurers).
• Senior Accountants and those aspiring to CFO roles.
• Business Owners and Entrepreneurs of mid-to-large size enterprises.
• Investment Bankers and Analysts
• Management Consultants specializing in finance and strategy.
• Strategic Planners
• Project Finance Specialists
• Equity Research Analysts
• Bankers and Lenders involved in corporate lending.
• MBA candidates and Finance Students seeking advanced practical application.

TRAINING MODULES

The course is structured into comprehensive modules, guiding participants through the core pillars of corporate financial decision-making:

No	Module	Details
1.	Foundations of Corporate Finance and Time Value of Money	This introductory module sets the stage by defining corporate finance, its primary objectives, and introducing the fundamental concept that underlies all financial decisions: the Time Value of Money. Key Topics: Goals of the firm: Shareholder wealth maximization. The agency problem and corporate governance basics. Introduction to Time Value of Money (TVM): Future Value, Present Value. Annuities, Perpetuities, and their applications. Loan amortization and interest rate calculations.
2.	Capital Budgeting: Investment Decision Rules	This module focuses on the process of evaluating and selecting long-term investment projects that generate value for the firm, covering various analytical techniques. Key Topics: Types of investment projects and capital expenditures. Net Present Value (NPV) and its decision rule. Internal Rate of Return (IRR) and its decision rule. Payback Period and Discounted Payback Period. Profitability Index (PI). Mutually exclusive projects and capital rationing.
3.	Capital Budgeting: Project Cash Flows and Risk Analysis	Building on the previous module, this module delves into estimating relevant cash flows for projects and incorporating risk into investment decisions. Key Topics: Relevant cash flows vs. accounting profits. Initial investment, operating cash flows, terminal cash flows. Inflation and capital budgeting. Risk analysis in capital budgeting: Sensitivity analysis, Scenario analysis, Simulation. Real options in capital budgeting (introduction).
4.	Cost of Capital and Capital Structure	This module explores how firms finance their operations and investments, focusing on calculating the cost of various financing sources and determining the optimal mix of debt and equity. Key Topics: Cost of Equity (CAPM, Dividend Growth Model). Cost of Debt and Cost of Preferred Stock. Weighted Average Cost of Capital (WACC) calculation. Optimal capital structure theories (e.g., M&M theorems, Trade-off theory, Pecking Order theory). Factors influencing capital structure decisions.
5.	Sources of Long-Term Finance and Dividend Policy	This module examines the various external sources of long-term funding available to corporations and the decisions related to distributing profits back to shareholders. Key Topics: Equity financing: Common stock, Preferred stock, IPOs, SEOs. Debt financing: Bonds, Term loans, Lease financing. Hybrid financing (e.g., convertible bonds). Dividend policy theories (e.g., Dividend irrelevance, Bird-in-hand, Tax preference). Types of dividends and share repurchases.
6.	Working Capital Management	This module focuses on the efficient management of a firm’s current assets and liabilities to maximize profitability while ensuring liquidity. Key Topics: Importance of working capital management. Managing cash and marketable securities. Managing accounts receivable and credit policy. Inventory management techniques. Managing accounts payable and short-term financing. Working capital financing strategies.
7.	Advanced Corporate Finance Topics and Risk Management	This module touches upon more complex corporate finance decisions and the crucial role of risk management in preserving and enhancing firm value. Key Topics: Mergers, Acquisitions, and Divestitures (basic concepts and valuation). Corporate restructuring and reorganization. Introduction to corporate risk management (identifying, measuring, managing financial risks). Hedging strategies (e.g., using derivatives – basic overview). Ethics and governance in corporate financial decisions. Current trends in corporate finance in emerging markets.

TRAINING STYLE

The modules will be taught through PowerPoint presentations, and lectures and will include a case study/field visit, breakout sessions, case studies and other interactive discussion components.

The course will also include a few guest speakers, both in person and via Zoom and other online learning platforms for overseas speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.

The conference faculty shall consist of experienced decision makers, as well as practitioners and representatives from established educational and research institutions active around climate change, engineering and international development. Throughout the course, theoretical presentation of concepts will be moderated and more group discussions and plenary engagements will be optimized. PowerPoint presentations will be made by facilitators and resource persons, to highlight key concepts before embarking on group work.

GENERAL NOTES

• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.
• We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more: info@ecasiafrica.org.
• Payment should be sent to our bank account before the start of training and proof of payment sent to: info@ecasiafrica.org.

ABOUT ECAS INSTITUTE

The ECAS Institute designs and delivers independent and targeted training, research, and consulting services. Our work focusses on climate change and resilience building, carbon markets, renewable energy, nature-based solution, biodiversity conservation, agriculture and food systems, We are located in Nairobi Kenya and work across the African region. We have implemented training and research assignments in Kenya, Tanzania, Uganda, South Sudan, Somalia, Malawi, Rwanda, Congo, and South Africa. Globally, we have supported our partners from the UK, Denmark, Italy, Sweden, Germany, and USA.