Practical capital structure decision-making covering EBIT-EPS analysis, cash flow approach, and valuation methods. Discusses business risk, operating leverage, financial leverage, and features of sound capital structure including return, risk, and flexibility.
Capital structure theory problems covering MM propositions, arbitrage opportunities, debt-equity ratios, and risk analysis. Includes practical exercises on leveraged recapitalization, share repurchases, and WACC calculations for different capital structures.
Analyzes sustainable growth through Starbucks case study and Avon Airlines financial forecasting. Covers growth strategies, customer satisfaction focus, financial metrics evaluation, risk factors, and strategic decision-making in business expansion.
Explores financial management concepts through “Is there a way out?” case study. Covers debt traps, factors leading to financial distress, sustainable growth rates, and options for entrepreneurs facing capital erosion and negative cash flows.
Planning definition, nature, relevance, principles, and limitations. Covers planning as future course of action, goal-oriented process, and continuous management function.