Certificate in Corporate Finance & Funding (CertCFF) including Fast-Track

Course overview

The Certificate in Corporate Finance & Funding (CertCFF) provides the knowledge and skills needed by finance professionals in addressing practical problems in corporate financial management, the capital markets and funding. CertCFF is co-authored by Glen Arnold and the ACT. Glen Arnold is author of the best selling finance text Corporate Financial Management.

CertCFF counts towards the AMCT Diploma in Treasury as one of the stage three electives, as well as being available as a standalone certificate.

The Corporate Finance & Funding Fast-Track course is exclusively for ACCA members and affiliates, CIMA members and students, ICAEW members and ICAS members. Benefits include reduced study content and a shorter final examination. For further information visit AMCT Fast-Track

Current ACT student? Please visit the study site

*If you are taking CertCFF as a standalone certificate you must enrol by 30 September for April examination and 31 March for October examination to benefit from maximum study time.

If you are taking CertCFF whilst studying for or having completed CertITM the latest you can enrol for this course is 15 December for April examination and 15 June for October examination.

**The discounted course fee of £750+VAT only applies if you are taking CertCFF at stage three of AMCT, ie if you are studying for or have completed CertITM. See AMCT for further details.

Student subscriptions

From 1 May 2009 all new students enrolling on ACT Certificates (or the AMCT Diploma) are required to pay an annual student subscription fee of £125 on a pro-rata basis from the month of enrolment and thereafter a yearly subscription each May.

This provides full student membership benefits including a subscription to The Treasurer magazine, special student rates when attending ACT training courses and events and purchasing the International Treasurer's Handbook plus free access to the ICAEW library and information service.

How can I enrol?

To enrol on CertCFF as a standalone certificate please complete and return the enrolment & booking form to the ACT.

• Download certificate enrolment & booking form (PDF 128K)

To enrol on CertCFF as part of the AMCT Diploma in Treasury go to the AMCT page.

Course objectives

• Equip you with technical knowledge of corporate financial management, the capital markets and funding and help you apply this knowledge in your day-today working environment
• Develop essential valuation skills and understanding of different methods, including net asset valuations, dividend valuation models, use of price-earnings ratios and cash flow based methods
• Explore the relationship between risk, return and capital structure and their impact on shareholder value creation
• Examine the main sources of finance including equity capital and corporate debt.

Who should take this qualification?

CertCFF is relevant for those who:

• Are in the early stages of a treasury career or who wish to join a treasury or corporate finance team either in a corporate or financial institution
• Wish to gain an understanding of the wider issues dealt with by corporate financiers and treasurers
• Have responsibility for treasury matters or financial resource allocation as part of a wider overall role
• Are considering a career in treasury or corporate finance either domestically or internationally
• Work in financial institutions, where there is a need to understand the corporate environment
• Deal with treasury matters as part of an advisory or consultancy role.

Learning outcomes

You will gain:

• A clear understanding of the essential theories, principles and techniques of corporate financial and funding management
• The core knowledge, technical and practical skills required for a role in treasury or corporate finance
• Insight into how to take decisions which create and maintain value for shareholders.

Course content

Study Unit 1 – The Financial World

Before you start learning the mathematical techniques and theory of corporate financial management, Study Unit 1 provides an overview of what finance is about. You will review some core concepts including the objectives of the firm, corporate governance, the role of finance and the importance of the financial sector. You will also look at how the company presents itself to the outside world. The primary way in which a company communicates with investors is by its financial statements, so we will look at how these are built up, before moving on to consider what information can be derived from them.

Study Unit 2 - Valuation

Study unit 2 begins with valuation of a project and examines a number of approaches to project appraisal including net present value (NPV) and internal rate of return (IRR). Good technical appraisal combined with appropriate practical application helps separate those projects that generate shareholder wealth from those that destroy it. It then moves on to consider the valuation of a business. Knowing how to value shares and entire companies is an essential skill for financial managers. The methods covered include net asset valuations, dividend valuation models, use of price-earnings ratios and cash flow based methods. It also discusses the valuation of unquoted companies and the main value considerations in takeovers.

Study Unit 3 – Risk, Return and Capital Structure

Study unit 3 explores the relationship between these three fundamental inputs to shareholder value creation. The study unit covers Modigliani and Miller’s theories of capital structure and discusses these and other factors that influence the debt level adopted by companies. Dividend theory is examined plus other factors which influence the pattern of dividend payouts. Study unit 3 concludes by exploring the various methods used to determine the risk-weighted cost of capital for a business. Optimising the cost of capital should result in shareholder wealth being increased at the optimum rate.

Study Unit 4 – Managing for Value

This study unit introduces the concept of value-based management, a managerial approach in which the primary purpose is long-run shareholder wealth maximisation. This approach is contrasted with more traditional accounting-based performance measurements. Value-based strategy provides a framework for wealth creation and value metrics provide reliable measures of value to facilitate choice between alternate paths. Shareholder value is commonly an important factor in mergers and acquisitions, so the study unit concludes with an overview of the most important issues in this field.

Study Unit 5 – Sources of Finance

Study unit 5 focuses on the sources of finance including equity capital and corporate debt. The different types of equity capital are discussed along with equity markets, flotations, placings and rights issues and private equity. Corporate debt looks at bank lending, the capital markets, private placements, medium-term notes and commercial paper. The practical aspects of corporate debt are also covered including documentation, bank relationship management and credit ratings. Study unit 5 concludes by looking at other funding solutions such as trade finance, project finance and leasing.

How will I study?

CertCFF is a distance learning programme combining self study with optional face-to-face tuition. The course offers a flexible approach to learning through an online study programme comprising:

• Learning resources – the searchable resource database includes technical content, practical exercises, self tests and further reading materials
• Study guide – the step-by-step guide directs students through the course and the activities to be completed. It provides guidance on how to get the most from the different learning resources
• Tutor guided forum – each study group has the support of a tutor to answer questions, solve problems and offer advice through the online forum. This enables regular contact and discussion with both the course tutor and other students.

What’s included: Access to the e-learning website, learning resources, study guide and forum

You will need: Access to a computer with internet connection

Optional suplementary reading

Corporate Financial Management by Glen Arnold. Published by Pearson Education Ltd.

Corporate Financial Management is a thorough and comprehensive introduction to corporate finance, set within a realistic and practical based context. It provides extensive coverage of financial decision making within the organisation and explains the financial markets in a highly accessible manner. The emphasis is on connecting finance theory to practical management.

The core theoretical principles of corporate financial management are explained with rigour and clarity and given a strong real world relevance through the use of Financial Times articles, vignettes and mini case studies.

You may also find it useful to purchase a financial dictionary. Two recommended books are:

• A Dictionary of Finance and Banking. Edited Brian Butler & Alan Isaacs (Oxford Paperbacks)
• Essential Finance: The Essential A-Z. Nigel Gibson (Published by the Economist)

These books can be obtained from bookshops or from www.amazon.co.uk

Entry requirements

• Good standard of english: due to the course being written and examined in English, students will need to possess a good standard of English.
• Internet Browser version: the eLearning website is an important part of this course as you will be able to access the online course manual, discussion forum and further information. Therefore you do need the latest browser to access the content. We suggest one of the following browsers: Internet Explorer 7 or 8, Firefox 3 or Google Chrome to view the content correctly.

Tuition and revision

The four day optional tuition course covers core topics. Tuition has been tailored to cover the key areas of the course – reinforcing and improving knowledge. Tuition days complement your home study; each day is intensive, covering a number of topics in detail with lecturers, worked examples and tutorial sessions.

The three day optional revision course covers exam preparation techniques, revision, tutor-structured solutions and exam question practice. The objective of the revision course is to revise material covered earlier, to enhance your confidence in attempting exam standard questions in the topics covered. Coverage is not comprehensive, but is designed to complement your final exam preparations and the previous tuition course and/or home study programme.

You can book onto the optional tuition and revision when you enrol or up to10 days before the start of the courses.

• Meet the tutors

Assessment and examination

Students are assessed by a three-hour written exam.

The mark you need to achieve a pass in all papers apart from CertITM is normally 50%. For CertITM the mark you need to achieve a pass is normally 70%. This higher mark is accounted for by the fact that in a multiple choice examination, marks may be gained by guessing the correct answer.

Corporate Finance Faculty

Once you have completed CertCFF you are eligible to join the Corporate Finance Faculty, which will continue your involvement with the ACT once you have finished studying and support your continuous professional development.

Benefits include access to a wide range of resources including the knowledge centre with updated CertCFF course materials, best practice guidance and the latest technical content as well as The Treasurer magazine. Networking opportunities will also be available through the faculty member directory, discussion forum and ACT regional group events.

Use of the designatory letters, CertCFF is exclusive to members of the CF faculty.

Continuing your studies

As well as a standalone qualification, you may also count CertCFF as one of the seven papers that comprise the AMCT Diploma in Treasury – the ACT's core treasury qualification which leads to associate membership and use of the designatory letters AMCT.