Foundations of Finance

Objective
Foundations of Finance lays a solid foundation of financial insight and understanding for every professional whose work is related to finance but who lacks the necessary finance background.

Throughout this intensive 2.5 week program, participants will be exposed to the main principles underlying corporate finance. Real world application will be learnt through extensive use of case studies and spreadsheet exercises. The program includes an optional two-day preparatory session for those who do not already have a basic understanding of financial calculations and statistics.

Key benefits
By attending Foundations of Finance you will:

  • Enhance your understanding of the accounting information contained in company annual reports
  • Deepen your ability to analyze how financial statement information captures and reflects the critical factors of risk and success in the competitive environment and strategy of firms
  • Improve your understanding of current financial trends and international financial markets
  • Develop a broad set of skills to succeed in equity investments and in acquisitions

Content
Subjects covered include:

  • Financial Analysis
  • Financial Markets
  • Valuation
  • Capital Structure
  • Options and Derivatives
  • Equity Financing
  • Debt Financing

Accreditation
Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 40 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.

Who should attend?
Typical participants are ambitious professionals in banking, investment or corporate finance environments who require a solid foundation on which to build a career. Professionals in other fields, with an interest or need to understand the principles of finance will also benefit from this program. Foundations of Finance can be used as a stepping stone to more advanced AIF courses.

Previous participants have come from banks, consultancies, law firms, public sector organizations and private sector companies.

Prerequisite
An academic background or sufficient professional experience is necessary to participate in the program. Participants are required to have experience in Excel as this will be used during the program in casework and in the application of financial principles (advanced techniques, where necessary, will be explained during the program).

Addtitional information
Computers are available for use during class time, but participants may also find it beneficial to have their own laptop for use in the evenings and weekends.

Faculty
Luisa Alemany is Associate Professor of the Financial Management and Control Department at ESADE, Spain. Her main areas of interest are Valuation, Venture Capital and Private Equity, and Corporate Finance. She is currently the director of the ESADE Entrepreneurship Institute and the co-director of the Business Angels Academy program.

Paolo Fulghieri is Professor of Finance at the Kenan-Flagler Business School of the University of North Carolina, USA. Between 1995 and 2002 he taught Corporate Finance in the MBA and several Executive Education programs at INSEAD, France, where he has been Dean of the PhD Program.

Pierre Hillion is the de Picciotto Chair at INSEAD in Alternative Investments and Visiting Professor at UCLA and CalTech in the USA. At INSEAD, he has received the Best Teacher for Electives, Singapore campus on several occasions.

Claude Viallet is Emeritus Professor of Finance at INSEAD where he has been teaching since 1978.

Christian Wolff is Director of the Luxembourg School of Finance and Professor of Finance at the University of Luxembourg. Additionally, he is a Research Fellow of the Centre for Economic Policy Research, London and Program Director of Amsterdam Institute of Finance.


For information about admission, please see our Practical Information.

Program Content
Optional Preparatory Session - 2 days
Basic Financial Calculations and Elementary Statistics

Thursday

Financial Calculations and Valuation

  • The basics of valuation: compounding, discounting and present value
Friday

Basics of Investment
  • Elementary statistics for finance: asset returns,expected return
  • Introduction to risk: the normal distribution, standard deviation
  • Introduction to portfolio issues: covariance, correlation

Week 1 - 6 days

Financial Analysis, Financial Markets,
Valuation and Capital Structure

Monday

Corporate Finance and Financial Analysis

  • The issues addressed in corporate finance
  • Corporate finance versus financial accounting
  • Financial Analysis

Tuesday

Financial Analysis and Managerial Efficiency

  • Cash flow analysis
  • Value analysis
  • Managerial efficiency

Wednesday

Valuation Principles

  • Discounting and compounding
  • Project appraisal methods
  • Capital budgeting

Thursday

Financial Markets: Risk and Return

  • Portfolio theory
  • The CAPM
  • Market efficiency

Friday

Valuation of Companies

  • Forecasting free cash-flows
  • Estimating residual value
  • Calculating the weighted average cost of capital (WACC)

Saturday

Optimal Capital Structure

  • Taxes and capital structure
  • Impact of agency costs of debt and equity
  • Impact of asymmetric information


Week 2 - 5 days

Debt and Equity Financing, and Derivatives

Monday

Equity Financing

  • Market timing
  • General public offerings and rights issues
  • The market reaction to new issues

Tuesday

Equity Financing and Underwriting

  • Private equity and venture capital
  • Public equity offers / IPOs and the role of underwriters
  • Best efforts versus firm commitment contracts

Wednesday

Basics of Derivatives

  • Forwards and futures
  • Options

Thursday

Fixed Income Instruments

  • Bond pricing and return analysis
  • Bond price volatility
  • Bonds with embedded options

Friday

Long-term Debt

  • Bond portfolios
  • Duration and convexity
  • Valuation of corporate debt
  • Risk of default

Dates & Fees
June 24 - July 9, 2010
€ 9,850
Less first 2 days
€ 8,750
 
 
(AIF programs are not subject to VAT)