This course is about Capital Structuring of Businesses.All the Business entities in this world, will work on this topic. Because, Capital Structuring Decisions, would decide the long term stability of any business. Business entities can have mix of their own funds and debt funds for running their business. But the mix should be an optimum one.
Wrong decisions in Capital Structuring would spoil the business which otherwise would have plenty scope for growth. The capital structuring of the business also decides the leverage and returns for the owners.
So, in this course we will be learning
a) Introduction to Capital Structure Decisions
b) What is Optimal Capital Structure
c) Leverage Analysis
d) Case Studies on Capital Structure
e) Effect of Capital Structure on Earning of the Promoters.
f) Indifference Point in Capital Structure.
g) Capital Structure Theories.
h) Arbitrage Process.
The terminologies used in the course will be of basic finance. This course has video lectures covering all the above topics. This course is structured in self learning pace.Take this course to understand the importance of Capital Structure Decisions.
- 29 Videos
Section 1: Introduction to Business Financing Decisions
- Introduction to Business Financing Decision
- Debt Vs Equity Financing
- Good Time and Bad Time for Debt Equity Financing
Section 2: Leverage Analysis
- Leverage and its types
- Leverage – Examples
- Leverage Analysis and Sales Movememnt
- Case Study 1 on Degree of Leverage
- Case Study 2 on Degree of Leverage
- Case Study 3 on Degree of Leverage
- Case Study 4 on Degree of Leverage
- Case Study 5 on Degree of Leverage
Section 3: Capital Structure
- Capital Structure
- Optical Capital Structuring Explanation
- Introductory Problem on Capital Structuring
- Problem on Capital Structuring and Tax Shield
- Problem 2 on Capital Structuring
Section 4: Capital Structure Theories
- Net Income Approach
- Net Operating Income Approach
- Traditional Approach
- Arbitrage Problem 2
Section 5: Financial Break Even and Indifference Point
- Financial Break Even and Indifference Analysis
- Indifferent Point
- Problem on EPS EBIT IDP
- Problem on IDP with Chart
- Problem on EPS and Capital Structuring
- Problem on EPS and Financing Alternatives
- Problem on IDP
Language of instruction: English