Course Overview

Understanding Your Middle Market Customer: Corporate Finance & Business Valuation is an introduction to the fundamental principles of corporate finance. It focuses on time value of money concepts used to solve business problems and discounted cash flow analysis used to determine the value of a business. This course is designed to provide participants with the opportunity to develop their understanding of corporate finance issues and to practice and learn how they can be part of a sound and profitable banking relationship. Those who have studied corporate finance will learn to view corporate valuation from the perspective of both the financial advisor and the client.

     

Duration

15 hours

Delivery

Instructor-Led Online

Program Level

Advanced

 

Prerequisites

Participants should have completed RMA’s Understanding Your Middle Market Customer: Credit Risk Analysis for Corporate Banking and Transaction Structuring courses or have a fundamental understanding of credit risk analysis and transaction structuring.

 

Who Will Benefit?

Financial professionals who call on either middle market or larger companies. This course is also appropriate for those who need to understand how corporate finance transactions affect traditional lending relationships.

   

Learning Objectives

Upon completion of this course, learners will be able to:

• Recognize customers’ business strategies and identify how the discipline of corporate finance can facilitate the achievement of those strategies.
• Quantify corporate value by discounted cash flow analysis, including the use of the following concepts and techniques:
  • Cash flow to security holders.
  • Weighted average cost of capital.
  • Terminal value.
• Understand the principles of other valuation methods and how they compare with valuation by discounted cash flow analysis.
• Apply valuation techniques to understand corporate decision making from the perspective of the owners or equity holders.
• Perform practical corporate finance computations on an HP financial calculator.

Methodology:

This program includes both quantitative and conceptual topics. Participants are likely to have a wide range of existing experience and skill levels with the various topics. The HP calculator practice will strengthen participants’ ability to perform actual calculations, either in the office or in a customer’s office. The calculator practice will also strengthen their understanding of calculations provided by others. Participants will learn by practicing the financial fundamentals such as skills on the financial calculator and how to use the Capital Asset Pricing Model, Beta, leverage adjustment multiplier, net present value, internal rate of return, and compounding.