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Present value, Future value and Capital Structure

Features Includes:
  • Self-paced with Life Time Access
  • Certificate on Completion
  • Access on Android and iOS App

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Description

This course has been designed for students studying Corporate Finance at the under-graduate or post-graduate level.

You will learn the following : -

  • Calculate the future value of a cash flow and of an annuity
  • Calculate the present value of a cash flow and of an annuity
  • Advantages and disadvantages of debt finance in terms of financial risk
  • The meaning of the Weighted Average cost of capital
  • The mechanics of the Traditional theory and the Miller and Modigliani theory
  • Calculate how a shareholder can benefit through arbitrage
  • Derive the optimal capital structure under the Traditional theory
  • Calculate the value and required return for equity and debt
  • Calculate the Weighted Average Cost of Capital

Basic knowledge
  • First year course in Financial Accountancy

What will you learn
  • Students will learn how to calculate the future and the present value of an amount and of an annuity
  • You will also learn how to value ordinary and preference shares, debentures and long term debt in the context of a Traditional world and a Miller and Modigliani world
  • The meaning and application of Capital structure and the cost of capital
  • How to Arbitrage in a Miller and Modigliani world and the derivation of the optimal Weighted Average cost of capital for a company
  • This course will also go through several tutorial and examination questions to teach you the application of the principals taught
Course Curriculum
Number of Lectures: 13 Total Duration: 05:46:40
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