MBA in Finance in a Nutshell
- Level: Introductory
- 35 CPE Credits
- Group discounts available
Susanne Trimbath, MBA, PhD Read bio
Target audience: Banks, Investment Banks, Brokerage Firms, Stock Exchange, Depository. Operations employees will benefit from a better understanding of the financial industry environment. Especially beneficial for employees who work day-to-day with Portfolio Managers, Financial or Research Analysts, Credit Risk Managers or Traders.
The course provides knowledge of key finance concepts and principles related to the time value of money, the effects of debt and dividend policy on firm value, and the operation of financial markets. In addition, the course is intended to provide the tools to calculate the value of stock and bond investments, to evaluate capital investments in productive firm assets, to assess the risk of investments, and to determine the cost of capital for firms and individual project.
5 day program. 9:00 AM – 5:00 PM with 1 hour for lunch from 12:00 – 1:00. Presented in 2 sessions per day at 3 hours each. Students should bring a laptop computer with Microsoft Excel (or equivalent software for spreadsheets). NOTE: Students should already know how to use basic Excel or another spreadsheet program. Software instruction is not included.
- Hours: 9:00 am-5:00 pm (registration/breakfast starts at 8:30 am)
- Advance preparation: None
DAY ONE: PREPARATION
Day 1, Morning: Reading Financial Statements. Overview the important terminology of finance for businesses using generally accepted accounting principles. Emphasis is on the practical application of income statements and balance sheets for gauging the financial condition of a business.
Day 1, Afternoon: Crunching Numbers. Discussion and practice of the statistical methods widely used for describing large data sets with just a few important descriptive statistics. Focus is on the basic statistics and methods available for understanding trends, averages and “normal” distributions. Practice will include using financial statement data from the morning session.
DAY TWO: PRACTICE
Day 2, Morning: Financing for Operations. Discussion of key decisions for business financing like selecting capital investment projects using financial ratios. Introduction to the business decision of going public versus staying private in anticipation of the introduction of the role of financial markets in the afternoon. Explains how organizations make investment and financing decisions. Students will receive formats (and Excel spreadsheets) with templates for capital budgeting, discounted cash flow valuation, cost of capital, and valuation methods.
Day 2, Afternoon: Capital Markets. This session examines the interaction between the firm and financial markets. Securities Operations (clearance & settlement, asset servicing) for secondary market activities. Includes practice with the Excel templates applying methods to stock and bond valuations, project selections, etc.
DAY THREE: BROADEN UNDERSTANDING
Day 3, Morning: Global Capital Markets. This session provides an overview of the global market by describing the resource bases, trade patterns and capital flows of various regions of the world. There are few barriers to cross-border, international financial activity. Being aware of the differences in other countries prepares students for problem-resolution in the multinational, multi-regulatory setting.
Day 3, Afternoon: Equity Markets. Describes and discusses the structure of equity markets and the variety of equity instruments. Provides practice for valuation of equity securities using some of the statistical skills developed in Day 1 and Day 2. Overviews the ethical issues of using information that impacts stock prices for trading.
DAY FOUR: SPECIALIZED INSTRUMENTS
Day 4, Morning: Debt Markets. Continued practice in valuation with now using bonds, and understanding interest rate structures and the variety of debt instruments. Preparation for the afternoon discussion of the role of futures and options in bond investment strategies with coverage of credit default swaps.
Day 4, Afternoon: Derivatives. Discussion of derivative securities and markets, with a focus on futures and options. Covers their usage in trading, hedging and risk management. This material is presented in a non-quantitative manner.
DAY FIVE: LEARNING INTO ACTION
Day 5, Morning: Investment Banking. This session presents an overview of the role of investment banking: functions, tasks, origination, syndication, distribution of new issues, mergers and acquisitions.
Day 5, Afternoon: Summary, Reflection, Evaluation. This session begins with a brief summary of the material covered during the week, focusing on its usefulness in non-trading and non-investment positions. Before the day ends, students will take time to reflect on what they have learned and how they can apply the ideas, techniques and analyses to their day-to-day responsibilities. Reflection will include discussion of ethics and professional responsibility across the topics covered. Students will receive performance evaluations for the quantitative work completed during the week.
In-house instruction is available. Contact us to inquire.