Corporate Finance

Corporate Finance - Part 3 (2022)


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.


On completion of this tutorial, you will be able to:
- Recognise 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
- Recognise the various liquidity ratios used to analyze a company’s liquidity position
- Measure a company’s working capital cycle
- Recognise 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: 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 Capital Overview
Topic 2: Cost of Debt Capital
Topic 3: Cost of Equity Capital
Topic 4: Cost of Preferred Stock
Topic 5: Weighted Average Cost of Capital (WACC)

Administrative Details

Relevant Subject
Type 6 - Advising on corporate finance
SFC:2.00, PWMA:2.00
All Member: HKD610
Non-Member: HKD890
Staff of Corporate Member: HKD610