Firm's Capital Structure

Highlights

Introduction, Time Value of Money, Bonds, Loans, Common and Preferred Stock, Summary of Main Differences between Debt and Equity Financing

Prerequisites

None

Objectives

After completing this course, you will be able to (1) calculate the present value and the future value of a single amount and the present value of an annuity, (2) differentiate different types of bonds and long-term loans, (3) calculate the price of the bonds on the issuance day, (4) compare the alternatives of equity financing with debt financing, and (5) determine the major advantages and disadvantages of issuing common stock and preferred stock.