Corporate Financing Decision syllabus
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Corporate Financing Decision
7 units
2 Long-term Financing (8 LHs)
- Features of Bonds
- Key characteristics of preferred stock, merits and demerits of preferred stock financing
- Common stock
- Legal rights and privileges of common stockholders
- Advantages and disadvantages of common stock
- Methods of selling securities
- Analysis of rights offering and effect of rights offering on shareholders’ wealth
- Effect of each financing alternative on balance sheet and income statement
3 Term Loan and Lease Financing (8 LHs)
- Key characteristics of term loan
- Loan amortization schedules
- Provision of moratorium period
- Security provisions and protective covenants
- Lease as a source of financing
- Features of a lease contract
- Advantages and disadvantages of lease financing
- Accounting and tax treatments of leases
- Analysis of lease versus buy/borrow decision using present value of cash flow approach
- Lease financing in Nepal
4 Short-term Financing (8 LHs)
5 Private Equity and Venture Capital Financing (5 LHs)
1. Introduction (5 LHs)
- An overview of corporate financing decisions
- An overview of corporate financing decisions: instruments, markets, and financial intermediaries
- Ethics in financing decisions
- Ethics in financing decisions
- Financial innovations and corporate finance
- Financial innovations and corporate finance
- Capital structure and financial structure
- Capital structure and financial structure
- Optimal capital structure and capital structure issues
- Optimal capital structure and capital structure issues.
2. Long-term Financing (8 LHs)
- Features of Bonds
- Features of Bonds, types of bonds, bond innovations, advantages and disadvantages of bond financing
- Key characteristics of preferred stock, merits and demerits of preferred stock financing
- Key characteristics of preferred stock, merits and demerits of preferred stock financing
- Common stock
- Common stock: Features of common stock
- Legal rights and privileges of common stockholders
- Legal rights and privileges of common stockholders
- Advantages and disadvantages of common stock
- Advantages and disadvantages of common stock
- Methods of selling securities
- Methods of selling securities: public offering, rights offering and private placement
- Analysis of rights offering and effect of rights offering on shareholders’ wealth
- Analysis of rights offering and effect of rights offering on shareholders’ wealth
- Effect of each financing alternative on balance sheet and income statement
- Effect of each financing alternative on balance sheet and income statement.
3. Term Loan and Lease Financing (8 LHs)
- Key characteristics of term loan
- Key characteristics of term loan, advantages and disadvantages of term loan financing, lenders of term loan, documents required for term loan
- Loan amortization schedules
- Loan amortization schedules
- Provision of moratorium period
- Provision of moratorium period
- Security provisions and protective covenants
- Security provisions and protective covenants
- Lease as a source of financing
- Lease as a source of financing
- Features of a lease contract
- Features of a lease contract
- Types of leases
- Advantages and disadvantages of lease financing
- Advantages and disadvantages of lease financing
- Accounting and tax treatments of leases
- Accounting and tax treatments of leases
- Analysis of lease versus buy/borrow decision using present value of cash flow approach
- Analysis of lease versus buy/borrow decision using present value of cash flow approach
- Lease financing in Nepal
- Lease financing in Nepal.
4. Short-term Financing (8 LHs)
- Short-term versus long-term financing
- Short-term versus long-term financing
- Advantages and disadvantages of short-term financing
- Advantages and disadvantages of short-term financing
- Unsecured sources of short-term financing
- Unsecured sources of short-term financing: accruals, trade credit, bank loan, commercial papers
- Secured sources of short-term financing
- Secured sources of short-term financing: accounts receivable financing (pledging and factoring), inventory financing (floating lien, chattel mortgage, trust receipt loan and warehouse financing)
- Cost of sources of short-term financing
- Cost of sources of short-term financing
- Factors to be considered while choosing appropriate source of short-term financing
- Factors to be considered while choosing appropriate source of short-term financing.
5. Private Equity and Venture Capital Financing (5 LHs)
- Private equity fund
- Private equity fund
- Founders and angels
- Venture capital
- Importance of venture capital financing
- Importance of venture capital financing
- Stages of venture capital financing
- Stages of venture capital financing.
6. Warrants and Convertibles (8 LHs)
- Concept and Valuation of warrants
- Concept and Valuation of warrants
- Convertible securities
- Convertible securities
- Valuation of convertible securities
- Valuation of convertible securities
- Reasons for issuing warrants and convertibles
- Reasons for issuing warrants and convertibles
- Effect of bonds/debentures with warrant and convertible financing on balance sheet and…
- Effect of bonds/debentures with warrant and convertible financing on balance sheet and income statement
- Exchangeable debt.
7. Financial Distress (6 LHs)
- Financial distress
- Financial distress
- Bankruptcy liquidation
- Bankruptcy liquidation
- Bankruptcy reorganization
- Bankruptcy reorganization
- Going private and leveraged buyouts
- Going private and leveraged buyouts
- Leveraged recapitalizations
- Leveraged recapitalizations
- Distress restructuring
- Distress restructuring
- Bankruptcy, liquidation, and reorganization in Nepal
- Bankruptcy, liquidation, and reorganization in Nepal.