Structure and optimal financing

Structure and optimal financing

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Corporate Finance (FIN 250)

Unit 7: Capital Structure Decision

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of structure and optimal financing.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Capital structure and financial structure
• Determining the optimal capital structure

Detailed Microsyllabus

1. Financing structure

   1. Capital structure versus wider financial structure.
   2. Mix of long-term funding sources.
   3. Business objectives and constraints.

2. Optimal structure

   1. Cost, risk and flexibility trade-offs.
   2. Evaluate alternatives using the prescribed approach.
   3. Avoid assuming a universally optimal debt ratio.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 80–82.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.