short-term funding options
(Common) and Preferred Stock
importance of Financial Gearing
Investment and Acquisition Appraisals
This course is designed to help students understand the various sources of finance available to businesses and the factors involved in making effective funding decisions. Participants will get a strong understanding of how to evaluate the cost of different financing options and build an appropriate capital structure by balancing risk and return considerations.
Everything you need to know
The course content is essential for those involved in investment appraisal and evaluating acquisition proposals who will need to appreciate the impact of funding on the appraisal and evaluation process, in addition to those involved in financial structuring and capital structure planning. It will also be of relevance to staff who require a developed knowledge of these concepts to support the decision-making process regarding the above activities. Business leaders who require a broad insight into the consequences of alternative sources of finance will also find this useful.
12 hours (this is run as 4 sessions of 3 hours each or 2 full days of 6 hours)
- Distinction between long and short-term funding options
- Key characteristics of Debt, Equity (Common) and Preferred Stock
- Balancing the mix – the critical importance of Financial Gearing
- The basic rules of Risk and Return
- Use of the Cost of capital in Capital
- Investment and Acquisition Appraisals
- Calculation of the Cost to the company of providing Equity Finance
- Are retained profits a free source of funding?
- Raising Equity – Placings, Rights
- Issues and the Public Markets
- Calculating the cost of Debt – the relevance of risk premiums
- The relevance of security in the form of fixed and floating charges
- Weighted Average Cost of Capital
- Other methods of Risk Adjustment
Equip your team with financial mastery
Give your teams the ability to understand numbers, evaluate performance, and contribute to better financial decision-making. Our programmes are built to bridge knowledge gaps and strengthen financial awareness across functions.
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