Episode Synopsis "Capital Structure - gearing and why debt finance is cheaper"

Kevin looks at the topic of capital structure. In this episode we see why debt finance is normally much cheaper for companies than the alternative of issuing equity finance. We also examine various measures of gearing.

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More episodes of the podcast Essentials of Corporate Financial Management by Glen Arnold - podcasts

• An introduction to the podcasts
• The Financial Markets
• The aims of Companies
• Aligning the goals of managers and shareholders
• The Financial Institutions
• An introduction to project appraisal
• The Time Value of Money
• NPV and IRR
• Practical project appraisal
• Risk and project appraisal
• Portfolio Theory and the Capital Asset Pricing Model
• Introducing the Equity Market
• Preference shares
• Looks at the London Stock Exchange
• Sets out the new issue process
• Examines the efficient market hypothesis
• Financial Times Data and Stock Market Indices
• Debt Finance
• Bond Instruments
• Crisis in the UK Money Markets
• Northern Rock, Convertibles and Syndicated loans
• The Cost of Capital
• The Cost of Capital
• The weighted average cost of capital
• Share Valuations
• Share valuation techniques
• Capital Structure - gearing and why debt finance is cheaper
• Capital Structure - financial distress
• Dividend Policy - the impact of dividends on share price
• Dividend Policy - dividends as a signal and innovative trading of dividends