Corporate Financial Strategy (AFCP861)

A company's financial strategy requires simultaneous decisions about capital structure, dividend and capital management, cash levels, financial risk profile and target credit rating. All of these decisions must be made in the context of the company's operating performance and growth strategies. Taking the CFO perspective, this unit will give students the opportunity to analyse and develop a company's preferred financial strategy. This unit should appeal to those involved in developing financial strategy for corporations, and investment and corporate bankers who might advise CFOs on financial strategy. The unit also addresses issues in: managing external stakeholders, particularly investor relations; risk allocation between various stakeholders; and the role of complex financial structures. Although the unit will take a strategic perspective, students will be able to develop financial modelling skills to support the necessary analysis.

Learning Outcomes:

  1. Understand the scope of decisions required to develop an integrated financial strategy that supports organisational objectives.
  2. Apply appropriate analytical techniques to evaluate trade-offs between strategic alternatives and support financial strategy recommendations.
  3. Understand how to assess the impact of risk on the design of corporate financial strategy.
  4. Ability to critically assess the potential role for non-vanilla financing products in developing corporate financial strategy.
  5. Ability to identify and resolve issues in developing financial strategy for organisations with offshore operations.
  6. Demonstrate an ability to understand issues involved in how the corporation interacts with financial markets.

Topics:

  1. Elements of Financial Strategy: Alternatives and Trade-offs
  2. Modelling Tools to Help in Designing Financial Strategy
  3. Designing Complex Capital Structures
  4. Capital Structures in Multinationals
  5. Managing Stakeholders (Particularly Shareholders)

Prerequisite Units:

Lecturers:

Unit Guides:

  • Corporate Financial Strategy - The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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