Corporate Finance and Investment Decisions

Explore financing growth through capital structure, funding sources, and capex decisions, applying time value of money, discount rates, npv and irr, and the working capital cycle from cash to inventory.

Learn how to manage working capital by tracking inventory stages from raw materials to finished goods, optimizing cash inflows and outflows, and shortening the cash conversion cycle.

Explore capital structure and leverage, including financial and operational leverage, as you analyze debt, equity, long-term liabilities, lease liabilities and right-of-use assets under modern accounting.

Explore how leverage shifts with what you count in the numerator and denominator. Compare debt, equity, and convertible instruments, and consider government backing across industries.

Assess how debt and equity availability, company stage, and cash position influence the ideal capital structure. Learn about short-term funding, lines of credit, and government-backed borrowing.

Understand debt versus equity financing and how term length shapes funding, including secured and unsecured loans, short- and long-term instruments, and the costs and implications of public vs private equity.

Match capital structure to risk appetite and corporate strategy, using higher debt for aggressive growth while preserving ownership by avoiding equity dilution.

Explore how market conditions and risk appetite shape funding choices between debt and equity, and how leverage and credit ratings influence the cost of debt and equity.

Analyze the cost of equity, including dividend expectations and capital appreciation, and how leverage and the CPM model shape its calculation; consider preferred equity's dividend payments.

Examine how capital structure affects profitability, profit after tax, and return on equity across four firms with identical assets but varying debt levels.

Explore how equal assets with varying leverage affect return on equity across favorable and adverse market scenarios, showing how higher gearing magnifies ROE and risks turning ROE negative.

Explore the capital structure from senior secured debt to equity, detailing liquidation priorities, risk and return profiles, and the cost of capital.

Learn the cost of capital with debt, its fixed interest, and the tax shield from interest deductibility; compute debt cost as interest times (1 minus tax).

Compare the cost of preferred equity, with fixed dividends paid from after-tax profits, to common equity driven by retained earnings and growth expectations, illustrated by Tesla and Nestlé.

Explore the expected return on equity through the capital asset pricing model, using Er = Rf + beta*(Rm - Rf) with risk-free rate, beta, and market return.

Use the capital asset pricing model to estimate expected equity returns via beta and market risk, and calculate the weighted average cost of capital across debt, preferred, and common equity.

Compute the weighted average cost of capital by combining after-tax debt costs with equity costs according to capital shares. Use this single figure to evaluate project viability.