An organisation should know how to choose between debt and equity funding and when to consider acquiring funds from capital markets. These external funding sources will have their own expectations for rates of return, and the cost of this funding is driven by external factors such as the state of the economy and the industry. Making sound capital budgeting and funding decisions is vital, and this module describes how characteristics of capital markets impact the process and prospects of raising capital. Highlights include how to observe external economic data and develop strategies to balance debt and equity.
To view the process of raising capital in a broad context regarding the mix of capital and the process of entering into capital markets.
To understand why changes in the industry and in the economy are important to investment and financing decisions in an organization.
The following topics will be covered
1: Financing Choices and the Debt-Irrelevance Proposition
2: Factoring Taxes into the Financing Decision
3: Financial Distress Costs
4: Factoring Transaction Costs into the Financing Decision
This will be done entirely online, with animation, videos, comparative tables and charts, as well as quizzes.
For executives representing SMEs considering to invest, or sell into these markets.