Corporate Finance - Part 3 (2019)

Overview

This course consists of two modules. Module 1 looks at the factors that influence capital structure decisions and how such decisions can impact solvency. It also describes how a company’s liquidity position can be analyzed and the importance of working capital management.

Module 2 shows how to calculate the cost of each form of financing and how to combine the cost of debt and equity to get overall weighted average cost of capital (WACC) for a company.

Objective

On completion of this course, you will be able to:
- Recognize the factors that influence a company’s capital structure
- Measure a company’s financial leverage
- Identify the importance of assessing a company’s operating leverage
- Recognize the various liquidity ratios used to analyze a company’s liquidity position
- Measure a company’s working capital cycle
- Recognize the risk/return nature of debt capital and the tax benefits to be derived from the use of debt financing
- Define and use the capital asset pricing model (CAPM) to calculate the cost of equity capital
- Calculate the cost of debt and equity capital to get an overall weighted average cost of capital (WACC)

Content Highlight

Module 1: Corporate Finance – Capital Structure & Liquidity
Topic 1: Overview of Capital Structure
Topic 2: Financial Leverage
Topic 3: Operating Leverage
Topic 4: Liquidity
Topic 5: Working Capital Management

Module 2: Corporate Finance - Cost of Capital
Topic 1: Cost of Debt Capital
Topic 2: Cost of Equity Capital
Topic 3: Cost of Preferred Stock
Topic 4: Weighted Average Cost of Capital (WACC)

Administrative Details

Code
TEPCF19000801
Venue
ePlatform
Language
English
Hours
SFC:2.00, PWMA:2.00
Fees
All Member: HKD580
Non-Member: HKD820
Staff of Corporate Member: HKD580