Andrew David Joseph Hall
Financial Management
I have excellent Financial Management and Analysis skills.
I first applied the techniques of Financial Analysis in 1980 when I developed my first business plan and helped to raise funding for the development of an add-on board for the IBM PC.
I was responsible for all aspects of Financial Management of Locomotive Software Limited between 1982 and 1994.
I used Financial Analysis to make decisions about or for Corporations - in my work for the Royal Bank of Scotland in Credit Control and Corporate Lending.
I learned a great deal more about the underlying theories of Financial Analysis and Decision Making in my MBA Program.
I have taught MBA "Financial Analysis and Decisions" for the Isenberg School of Management.
The course has three main objectives:
- To deepen students' knowledge of financial theory and practice.
- To develop their financial analysis skills.
- To allow students to practice the appliction of the technical and mathematical tools of financial management using complex, true to life, case studies.
Teaching the material to MBA students, using Case Studies increased my knowledge and understanding of the principles and practice of Financial Analysis.
Financial Analysis and Decisions
Course Content
- Fundamentals
- Time Value of Money
- Bond and Share Valuation
- Project Evaluation
Math In Finance, simple Statistical measures, the use of Excel in Finance and Financial Statement Analysis.
The Corporation, the Role of the Financial Manager, Agency, an Overview of Risk and Return and the Time Value of Money.
Valuing Bonds and Valuing Common Stock or Shares in a Corporation.
The application project evaluation methods: NPV, PI, Payback, EAA and IRR using The Investment Detective Case.
- Risk and Portfolio Theory
- Capital Budgeting, Risk and Divisional Cost of Capital
- Capital Budgeting, Economic Value Added and Value Creation
- The Efficient Markets Hypothesis
- Managing the Firm's Equity
- Common Stocks, Bonds, Financing and Leverage
- How Much To Borrow - William Wrigley Case
- Valuation using Discounted Cash Flows
- Options Overt and Embedded
- Financial Ratio Analysis
- Financial Planning
Using statistical measures of risk to develop an understanding of Portfolio Theory; the Capital Asset Pricing Model and WACC to set Hurdle Rates.
The Best Practices in Estimating the Cost of Capital applied to calculating hurdle rates for divisions in the Boeing 7E7 Case.
The Capital Budgeting Process and measures of the performance of corporations or divisions.
Considers the evidence for and against the Efficient Markets Hypothesis with the Warren Buffett and Value Trust Cases.
Dividends; dividend policies; home-made dividends, share buy backs, the role of external financing and IPOs. The Jet Blue Case allows investigation of the issues in an IPO and how difficult it is to place a value on a firm's equity.
Stocks and Bonds make up the Capital of the firm. Each is priced differently and taxed differently. The differences in taxation mean that debt policy can create value for the firm.
Should William Wrigley issue $3 billion of debt and use the proceeds to buy back the company's shares?
The application of Discounted Cash Flow or DCF to value a Jet Blue Share.
Options are Valuable. Options are everywhere, embedded in the structures of financial assets. Valuing Options; how to reduce risk (hedge) with Options, and how to recognize embedded options and the value that they may create for the firm.
Financial Statement Analysis using Ratios and Cash Flow Analysis.
Financial Planning: projections of the future cash flows to a business based on a business plan or on the historical activity in the firm combined with the new projects that are foreseen or being implemented.
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