This section looks at a company’s weighted average cost of capital (WACC). The concept is defined and explained, and an illustrative example shows a step by step method to calculate the WACC, which is an extremely important indicator in any business.
This section looks at the advantages and disadvantages of debt vs equity financing. It is important to differentiate the uses and drawbacks of using a particular mode of financing in a business and this section helps you analyse the most appropriate method to use.
This section looks specifically at the costing of preference shares with an illustrative example to indicate how such an analysis will be carried out.
This section looks specifically at the costing of ordinary shares with illustrative examples to indicate how such an analysis will be carried out.
This section looks at the cost of equity financing. The Gordons Growth Model is reviewed with the zero-growth model and the constant growth model discussed. Illustrative examples also show practical applications of the model.
This section looks at equity financing and the different types of equity financing. Ordinary and preference share are re-visited.
This section looks at different types of debt financing being bonds and debentures. The characteristics of each is then reviewed with the section closing off on how to cost debt financing.
This section looks at the different types of internal financing that a company can investigate if financing is required. It then reviews debt financing in detail, its features and types.
This section looks at the meaning of financing and financing decisions in a business context. It looks at the importance of the financing decision and the different options available to finance. The impact of financing on the balance sheet is also discussed.