Capital Structure Optimization: Strategies for Balancing Debt and Equity

What you will learn

Program Structure

• Introduction to Capital Structure

  3 Lessons · 45 min
  • Definition and Importance of Capital Structure
  • Overview of Debt and Equity Financing
  • Theories of Capital Structure (Trade-Off Theory, Pecking Order Theory, etc.)
• Evaluating Debt and Equity

  3 Lessons · 45 min
  • Cost of Debt vs. Cost of Equity
  • Financial Leverage and Operating Leverage
  • Impact on Financial Ratios and Covenants
• Strategies for Capital Structure Optimization

  4 Lessons · 1 hr
  • Assessing Financial Health and Capital Needs
  • Determining Optimal Debt-Equity Ratio
  • Leveraging Tax Benefits and Considering Bankruptcy Costs
  • Case Studies on Capital Structure Decisions
• Risk Management in Capital Structure

  3 Lessons · 45 min
  • Managing Financial Risk Through Capital Structure
  • Impact of Market Conditions on Capital Structure
  • Scenario Analysis and Stress Testing
• Practical Applications and Decision-Making

  3 Lessons · 45 min
  • Capital Structure and Corporate Strategy Alignment
  • Implementing Changes to Capital Structure
  • Monitoring and Adjusting Capital Structure