Chapter Name: Long term financial management – Financing
Description:Learners examine various financing options, such as equity, debt, and hybrid instruments, and their implications for retail businesses.
Purpuse:To provide learners with the knowledge to select appropriate financing methods for long-term growth initiatives.
Rational:Choosing the right financing options ensures that retail businesses can fund expansion and innovation without compromising financial stability.
Chapters Topics
Forms of Financing
Covers the different sources of financing available to businesses, including debt, equity, and hybrid instruments, and the implications of each on financial structure and cost of capital.
The Cost of Capital
Discusses the concept of the cost of capital, which represents the minimum return required to justify an investment, and how it is calculated using the Weighted Average Cost of Capital (WACC).
Leverage and Capital Structure
Explores the use of debt (leverage) in financing business operations, its impact on capital structure, and the trade-offs between risk and return in determining an optimal capital structure.
Dividend Policy
Investigates the strategies companies use to determine dividend payouts, balancing the need to reward shareholders with the necessity to reinvest in the business for growth.