Financial Management for Managers - Cost of Capital and Capital Structure
Learn about computing the cost of capital and determining the optimal capital structure from this free online course.
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Financial managers are largely responsible for a company's financial status and help to determine the optimal capital structure. This free online course from Alison teaches you the crucial aspects of estimating the cost of capital to ensure the most efficient and effective capital structure for an organization. The Financial Management for Managers - Cost of Capital and Capital Structure course begins with a discussion on the components of the weighted average cost of capital and the sources of debt capital.
Next, you will study the approaches to calculating the cost of capital - debt, equity, and preference capital. You will also analyze the best global practices in estimating the cost of capital and determining the optimal capital budget. Then, you will learn about the approaches to divisional and project cost of capital, along with the effects of flotation costs. You will take a look at misconceptions in applying the cost of capital and assumptions of the relationship between capital structure and cost of capital. You will also discuss the approaches to the capital structure as well as the propositions and criticisms of the Modigliani-Miller Theory. Finally, you will analyze the effects of taxes on capital structures and various factors affecting a company's dividend policy.
This course will enable you to acquire knowledge about the world of finance from the aspect of determining the cost of capital and achieving an optimal capital structure for successful financial management. So, if you're interested in Finance as a career, or if you are a finance professional looking to enhance your skills, or simply an individual with an interest in gaining knowledge of financial concepts, then check out this course today and start taking your career and knowledge to the next level.Start Course Now
Cost of Capital
Cost of Capital - Learning Outcomes
Introduction to Cost of Capital
Sources of Debt Capital
Calculating the Cost of Capital
Approaches to Cost of Equity
WACC and Capital Structure
Divisional Cost of Capital and Flotation Costs
Misconceptions and Assumptions
Cost of Capital - Lesson Summary
Capital Structure - Learning Outcomes
Approaches to Capital Structure
The Modigliani-Miller Theory
The Modigliani-Miller Theory - 2
Tax Effect on Capital Structure
Optimal Capital Structure and Dividend Policy
Capital Structure - Lesson Summary
Upon successful completion of this course, you should be able to:
- Identify the components of the weighted average cost of capital
- Compute the cost of debt and preference capital
- Describe the methods of adjusting for floatation costs
- Indicate some misconceptions in calculating and applying the cost of capital
- Recognize the criticisms of the Modigliani-Miller theory
- Evaluate the impact of corporate and personal taxes on capital structure
- Outline the costs of financial distress in an organization
- Describe the pecking order of financing
- Explain the signaling theory of capital structure
- Analyze the determinants of a firm's dividend policy
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