SUBSCRIPTION FOR 1 year

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Capital Cost and Capital Structure

What you will learn:

  1. Quantify sustainable debt levels in context of business strategy, market conditions and potential corporate actions by setting cash flow drivers in a prepared Excel model.
  2. Understand the relative advantages and disadvantages of various debt instruments and the factors influencing a corporate treasurer’s choice.
  3. Structure funding solutions using bank and debt/equity capital market products to meet the commercial and financial needs of the company whilst protecting the bank’s or bond investor’s position.

US$62 per 365 days

Category:

Product Description

What is Capital Cost and Structure:

Capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. A firm’s capital structure is typically expressed as a debt-to-equity or debt-to-capital ratio.

Debt and equity capital are used to fund a business’s operations, capital expenditures, acquisitions, and other investments. There are tradeoffs firms have to make when they decide whether to use debt or equity to finance operations, and managers will balance the two to find the optimal capital structure.

Why it is important:

Every business raise various forms of Capital for running the business. None of the funds are free. Each fund comes with a cost. Every Entrepreneur, every Finance Manager should be aware of the Cost of Capital of their business. Many businesses fail, because the management itself would not be aware of the Cost of Capital of the business. Unless the returns earned from the business is greater than or equal to cost of capital, no business can sustain / grow. Cost of Capital is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.

What you will learn:

  1. Quantify sustainable debt levels in context of business strategy, market conditions and potential corporate actions by setting cash flow drivers in a prepared Excel model.
  2. Understand the relative advantages and disadvantages of various debt instruments and the factors influencing a corporate treasurer’s choice.
  3. Structure funding solutions using bank and debt/equity capital market products to meet the commercial and financial needs of the company whilst protecting the bank’s or bond investor’s position.

Target audience:

Financial professionals with an interest in debt origination and structuring, or further enhancing their corporate analysis skill with a focus on corporate funding solutions. Financial professionals in a credit risk, syndication, debt origination, asset investment or relationship management role, as well as those engaged in the assessment of counterparty risk from an underwriting viewpoint or trade debtor exposure. Regulators or those in a supervisory role with an interest in understanding the underlying credit assessment needed in the organizations or departments they assess. Participants are expected to be familiar with financial statements and corporate credit analysis.

 

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