Cost of Capital and Capital Structure | Free Online Course | Alison
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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.

Management and Administration
Free Course
Financial Management for Managers - Cost of Capital and Capital Structure is a free online course that teaches you how to determine the cost of capital and achieving an optimal capital structure for financial management. Learn about computing the weighted average cost of capital, the Modigliani-Miller theory on capital structure, and dividend policy factors. Register for this course today and develop your career as a finance professional.
  • Duration

    4-5 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    NPTEL

Description

Modules

Outcome

Certification

View course modules

Description

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.

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Learning Outcomes

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

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certificates for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certificates are available to purchase through the Alison Shop. For more information on purchasing Alison Certificates, please visit our FAQs. If you decide not to purchase your Alison Certificate, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certificate pricing, please visit our Pricing Page.

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