In this Capital Cost and Structure Course, you will learn about the cost of capital and how to forecast dividends and cash flow, and see how cash flow can differ significantly from earnings, you will learn about the cost of capital and how to forecast dividends and cash flow, and see how cash flow can differ significantly from earnings.

US$62 per 365 days

 

What is Capital Cost and Structure:

The cost of capital is one of the most important, and least understood, concepts in corporate finance. While it can be regarded as a fundamental building block of corporate finance, the cost of capital is frequently ignored by many companies as they go about their day-to-day operations.

Investments that earn returns greater than the cost of capital add value for shareholders. Therefore, by ignoring the cost of capital, companies run the risk of misallocating capital and therefore destroying rather than creating shareholder value.

The cost of capital encompasses the cost of both debt and equity capital. Interest on debt is tax-deductible, which makes debt financing more attractive. The optimal proportion of debt and equity in a company's capital structure involves a trade-off between the tax benefits of debt and the increased cost of financial distress from taking on more debt.

In this course, you will learn about the cost of capital and how to forecast dividends and cash flow, and see how cash flow can differ significantly from earnings.

Why it is important:

This course will provide you with the tools necessary to determine debt and equity capital costs so that a proper comparison can be made between a company's cost of capital and the return actually being earned on that invested capital. You will learn about the optimal amount of debt and equity that a company should have in its capital structure. Finally, you will discover how to calculate company cash flow and depreciation charges using various accounting methods.

What will you learn:

  1. Cost of Equity.
  2. Beta and the Capital Asset Pricing Model (CAPM).
  3. Operating Leverage and Financial Structure.
  4. Cost of Debt.
  5. Tax Impact of Debt.
  6. Market Value and Book Value of Debt.
  7. Weighted Average Cost of Capital (WACC).
  8. Refining the Cost of Debt.
  9. Optimal Capital Structure.
  10. Dividend Policy.
  11. The Elements of Cash Flow.
  12. Forecasting Dividends.

Target audience:

Recruits to institutions with derivatives operations, risk managers, research staff, sales and marketing executives, operations and support staff looking to further their derivatives product knowledge, and compliance professionals.

Curriculum:

  1. Cost of Equity
  2. Beta and the Capital Asset Pricing Model (CAPM)
  3. Beta and Operating Leverage
  4. Cost of Debt
  5. Tax Impact of Debt
  6. Market Value and Book Value of Debt
  7. Weighted Average Cost of Capital (WACC)
  8. Refining the Cost of Debt
  9. Creating a Synthetic Rating for a Bank
  10. Optimal Capital Structure (Part 1)
  11. Dividend Policy
  12. The Elements of Cash Flow
  13. Straight Line Depreciation
  14. Capital Expenditure
  15. Synthetic Bond Ratings and the Cost of Debt
  16. Optimal Capital Structure (Part 2)
  17. Forecasting Dividends
  18. Calculating Levered Beta

Featured Courses

0