CourseLSC604

Week6 of 16

SemesterII

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This week’s topics

Capital Structure and Conventional Project Financing

Debt versus equity financing
Weighted average cost of capital (WACC)
Short-term working capital needs
Long-term debt instruments
The weighted average cost of capital (WACC) - ACCA Financial Management (FM)
CIMA F3 Long term debt finance
Capital Structure: Debt vs. Equity Explained
TU Delft – Characteristics of project finance

What you will be able to do

3.1 Explain the capital structure and the long term and short-term finances in project management in business.

Activity

Start with this week’s 4 videos, then: Seminar, guided reading and a short written task: explain the capital structure and the long term and short-term finances in project management in business.

Study materials

Videos

The weighted average cost of capital (WACC) - ACCA Financial Management (FM) · YouTube · OpenTuition · 24 min · for registered students
CIMA F3 Long term debt finance · YouTube · OpenTuition · 20 min · for registered students
Capital Structure: Debt vs. Equity Explained · YouTube · Corporate Finance Institute · 4 min · for registered students
TU Delft – Characteristics of project finance · YouTube · TU Delft · 10 min · for registered students
Capital Structure Theory Explained - Raghavendra Rau · YouTube · Gresham College · 64 min · for registered students
Session 18: Financing Hierarchies, Miller-Modigliani & Cost of Capital Approach to Debt Optimization · YouTube · Aswath Damodaran · 88 min · for registered students
Session 17: The cost of capital approach to optimizing financing mix · YouTube · Aswath Damodaran · 49 min · for registered students
Chapter/Session 7: Business Financing across the Life Cycle · YouTube · Aswath Damodaran · 28 min · for registered students
Session 19: Enhanced Cost of Capital Approach and Determinants of Optimal · YouTube · Aswath Damodaran · 84 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
Introduction to Business 2e, ch. 16.3–16.5: Short-term, long-term and equity financing · PDF · OpenStax, textbook chapter; pp. 543–548 · for registered students
MIT 15.414 Financial Management, lecture notes: Discount Rates in Practice · 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.

Week 5 Week 7

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Course plan

Week 1: Strategic Role of Project Management
Week 2: Project Planning Tools and Methodologies
Week 3: Technical Feasibility and Location Selection
Week 4: Network Analysis Techniques
Week 5: Critical Path Method and Schedule Optimization
Week 6: Capital Structure and Conventional Project Financing
Week 7: Contemporary and Alternative Project Finance
Midterm: Midterm evaluation
Week 9: Project Execution, Monitoring, and Control
Week 10: Risk Monitoring and Quality Governance
Week 11: Project Closure and Post-Implementation Evaluation
Week 12: Applying Project Management 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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