The Oxford 5-Day MBA in Finance

DAY 1

An Introduction to the Financial Markets

• An introduction to the equity markets:

  • IPO

  • Market Indices

  • International Equity Market Links

• An introduction to bond markets

• Long Term versus Short Term

• Treasury versus Corporate

• Types of Bond

• The spot and forward market

• Exchange Rate trends and linkages

• Carry Trades

• Futures

• Options

• An introduction to the FX market

• An introduction to the Derivatives Market

• The link between risk and return

DAY 2

Evaluating Investment Opportunities

• The Markowitz model of Portfolio Risk

• The Capital Asset Pricing Model

  • A practical application of the CAPM to a range of companies

• The time value of money and discounted cash flow techniques

• The Gordon Growth Model

• A practical application of forecasting dividends

• Determining the Cost of Debt

• The Ameritrade Case

• The importance of the cost of capital

• Scenario analysis

• The weighted average cost of capital (WACC)

• A practical application of the IRR approach

• Pitfalls in using the IRR approach

• Investment Appraisal using the Net Present Value approach

• Payback and adjusted Payback

• The Internal Rate of Return (IRR) approach

• Real Options

DAY 3

A Walkthrough an Annual Report

• The Balance Sheet

• The Income Statement

• The Cash Flow Statement

• Ratio Analysis

• A practical application of Ratio Analysis:

  • Apple v Microsoft

  • Next v Tesco

  • Easyjet v British Airways

• Forecasting Sales

• The cost of sales approach

DAY 4

The Corporate Financing Decision

• Financial Leverage

  • Modigliani and Millers Theory of Capital Structure

  • The Risk of Bankruptcy

  • The Optimal Capital Structure

• The Dividend Decision

• The clientele effect

• The taxation effect

• The principal-agent problem

• The market for Corporate Control

DAY 5

Risk Management

• Hedging Exchange Rate risk using:

  • the forward market

  • the options market

  • zero-cost collars

• Hedging commodity price risk using:

• Options

• Futures

• Practical Application of airlines hedging fuel price risk- the importance of correlation