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Level 8 Diploma in Strategic Management and Leadership Practice

Long-Term Capital Structure and Funding Selection

SMP810 · Strategic Financial Management — Week 9 of 16

CourseSMP810
Week9 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Long-Term Capital Structure and Funding Selection

  1. Weighted average cost of capital (WACC)
  2. Equity versus debt financing strategies
  3. Hybrid instruments and mezzanine finance
  4. Financial risk profiling and covenant design
  5. Session 13: Estimating Hurdle Rates- Financing Weights & Cost of Capital
  6. CIMA F3 Long term debt finance
  7. Cost of Capital (WACC)

What you will be able to do

  • 4.2 Appraise appropriate sources of short term and funds for an organisation.
  • 4.3 Justify choices of sources of funds using a range of criteria related to cost and risk.

Activity

Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: appraise appropriate sources of short term and funds for an organisation.

Study materials

Videos

  • Session 13: Estimating Hurdle Rates- Financing Weights & Cost of Capital · YouTube · Aswath Damodaran · 13 min · for registered students
  • CIMA F3 Long term debt finance · YouTube · OpenTuition · 20 min · for registered students
  • Cost of Capital (WACC) · YouTube · Kaplan UK · 29 min · for registered students
  • Session 18 (MBA): The Cost of Capital and Optimizing Debt · YouTube · Aswath Damodaran · 87 min · for registered students

Further resources

  • How Do CFOs Make Capital Budgeting and Capital Structure Decisions? · PDF · Reading, article · for registered students
  • MIT 15.414 Financial Management, lecture notes: Financing Decisions (2) · PDF · Other, slides · 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.
Course chat

Admitted students ask questions on this week’s page in the student portal: an AI assistant trained on the course answers first, and during the course’s timetabled classes Connect to your tutor brings your tutor into the chat, who may start a call if needed.

Open this week in the portal
Course plan
  • Week 1: Strategic Cost Management and Systems Design
  • Week 2: Advanced Costing Optimisation and Pricing Strategies
  • Week 3: Advanced Financial Statement Analysis
  • Week 4: Corporate Portfolio Evaluation and Strategic Decision-Making
  • Week 5: Master Budget Architecture and Target Setting
  • Week 6: Critical Perspectives on Budgetary Control
  • Week 7: Strategic Working Capital and Funding Appraisals
  • Midterm: Midterm evaluation
  • Week 9: Long-Term Capital Structure and Funding Selection
  • Week 10: Capital Investment Appraisal Under Uncertainty
  • Week 11: Strategic Investment Governance and Qualitative Appraisals
  • Week 12: Applying Strategic Financial Management in practice: case s…
  • 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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