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Capital structure

Unit 7: Capital Structure and LeverageTopic 1 of 3
Browse the Fundamentals of Financial Management syllabus

Fundamentals of Financial Management

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What the syllabus expects

  • Concept

Capital structure

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 7: Capital Structure and Leverage

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of capital structure.
  • Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

  • Concept

Detailed Microsyllabus

  1. Capital structure

    1. Mix of debt, equity and related financing sources.
    2. Distinction from wider financing structure where relevant.
    3. Long-term financing objectives.

  2. Business implications

    1. Leverage, flexibility and financing commitments.
    2. Risk–return trade-offs.
    3. Assess structure using business conditions and constraints.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

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.