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Level 6 Diploma in Business Management

Sources and Selection of Business Finance

BM604 · Financial Decision Making — Week 6 of 16

CourseBM604
Week6 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Sources and Selection of Business Finance

  1. Short-term working capital financing
  2. Long-term debt and equity financing instruments
  3. Weighted average cost of capital (WACC)
  4. Determinants of optimal capital structure
  5. Session 17: Optimal Financing Mix I - The Trade Off
  6. Cost of Capital (WACC)
  7. CIMA F3 Long term debt finance

What you will be able to do

  • 3.1 Appraise various sources of short-term and long-term financing for businesses.
  • 3.2 Critically examine key factors affecting the choice of source of financing.

Activity

Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: appraise various sources of short-term and long-term financing for businesses.

Study materials

Videos

  • Session 17: Optimal Financing Mix I - The Trade Off · YouTube · Aswath Damodaran · 19 min · for registered students
  • Cost of Capital (WACC) · YouTube · Kaplan UK · 29 min · for registered students
  • CIMA F3 Long term debt finance · YouTube · OpenTuition · 20 min · for registered students
  • Session 17: The Financing Mix Trade off · YouTube · Aswath Damodaran · 86 min · for registered students
  • Session 16: The Debt Equity Trade off · YouTube · Aswath Damodaran · 90 min · for registered students
  • Session 18: Optimal Financing Mix II- The cost of capital approach · YouTube · Aswath Damodaran · 19 min · for registered students
  • Chapter/Session 7: Business Financing across the Life Cycle · YouTube · Aswath Damodaran · 28 min · for registered students

Further resources

  • Principles of Finance 2e, ch. 17: How Firms Raise Capital · PDF · OpenStax, textbook chapter; pp. 509–536 · for registered students
  • The Business Finance Guide, The journey and finance options · Reading · Other, report; pp. 6–29 · for registered students
  • MIT 15.414 Financial Management, lecture notes: Financing Decisions (2) · PDF · Other, slides · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
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Course plan
  • Week 1: Strategic Business Decision Making and Financial Drivers
  • Week 2: Business Risk Assessment in Financial Decisions
  • Week 3: Accounting Foundations and Expenditure Classification
  • Week 4: Structure and Interpretation of Final Accounts
  • Week 5: Financial Performance Metrics and Long-Term Sustainability
  • Week 6: Sources and Selection of Business Finance
  • Week 7: Capital Expenditure Appraisal Techniques
  • Midterm: Midterm evaluation
  • Week 9: Off-Balance Sheet Financing and Risk Management
  • Week 10: Ownership Structures, Governance and Agency Dynamics
  • Week 11: Ethics, Governance Controls and Financial Accountability
  • Week 12: Applying Financial Decision Making in practice: case studies
  • Week 13: Assignment workshop: research, planning and referencing
  • Week 14: Assignment workshop: drafting, feedback and improvement
  • Week 15: Review and coursework completion
  • Final: Final assessment and submission
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