Financing Capital Requirements

Course Description

A discussion of how to establish capital structure policies and determine the best methods for raising required capital, the course covers formulation of debt, dividend and equity policies, selection of appropriate financing vehicle, and selection of capital market

Learning Outcomes

• Evaluate complex, unstructured financial data for more effective financial decision-making.
• Evaluate capital structure theory and its value in making capital structure decisions.
• Synthesize the major issues of capital structure theory and the contrasting theoretical tenets proffered by the major theoreticians.
• Analyze dividend theory, the clientele effect, the signaling effect, and related concepts in dividend policy.
• Estimate corporate debt capacity and the importance of debt policy in capital structure management.
• Compare and contrast the significance of operating and financial leverage and their impact on capital structure variables.
• Analyze how the globalization of capital markets effect the capital structures of business and non-business organizations.
• Implement decisions based upon business ethics in finance.
• Compare and contrast capital markets, public and private placements, and broad procedural aspects involved in financing a firm.
• Plan and implement public offering procedures, exempt offerings shelf registrations, blue sky laws, and related S.E.C. required regulations.
• Forecast the firm’s need for external funds and evaluate various capital structure options related to a series of financing during a specified time period.
• Estimate corporate debt capacity and establish analytically defensible parameters for corporate debt policy.
• Evaluate the procedure and implications of corporate debt refunding, bond swaps, and related transactions for use in recapitalizating the firm.
• Analyze the use of share repurchase programs to transfer and create value for the shareholder.
• Evaluate the role of trustees and transfer agents.
• Compare and contrast callable and convertible securities and their role in maximizing financial flexibility and shareholder wealth.
• Analyze the use of warrants and rights for use in financing the firm.
• Evaluate several financial options available to a firm within the context of an unstructured and closed universe of data, and select an option which will most effectively meet the needs of the firm.

Prerequisites

• FIN609A