Strategic financial value management
The course addresses the limitations of traditional measures of corporate performance and introduces value-based measures such as Economic Value Added (EVA) and Market Value Added (MVA) which are designed to track and manage shareholder value creation. The shortcomings of the well-known traditional measures of performance, namely Return on Equity (ROE) and Earnings per Share (EPS) are analysed and it is indicated how a narrow focus on these measures can lead to value destruction. Different approaches to enhance shareholder value are put forward, including an alignment of executive remuneration with company performance in terms of shareholder value.
Learning outcomes:
Once successfully completed, a delegate will have;
- A better understanding of why companies should focus on shareholder wealth;
- An improved awareness of the limitations of traditional measures of performance; and
- Acquired the skills to develop and use appropriate models to facilitate value-enhancing decision-making.
Course content:
The course will focus on the following topics:
- Strategic corporate financial performance measures
- Determining the optimal capital structure
- Why ROE is valuable, but flawed
- Analysing and interpreting EPS growth
- Executive remuneration and company performance
Entry requirements:
A BCom or BAcc degree is required.
Time: 08:00 - 16:00
Venue: University of Pretoria, Main Campus, Hatfield, Pretoria
Cost: R7,900 (VAT incl.)