Corporate Finance #5 Financing Decisions


Learn strategies for making company financing decisions form a Certified Public Accountant (CPA)

What you will learn

Explain the nature of asset growth

Discuss patterns of financing

Estimate financing needs

Compare short term financing and long term financing

Understand equipment financing options

Discuss asset mix and financing mix

Analyze different financing strategies

Calculate break even point in interest rates

Description

This course will discuss company financing decisions from a corporate finance perspective.

Financing is often a critical component to company growth, optimal financing allowing companies to grow much faster while mitigating risk.

We will consider general financing patterns of a corporation.

Financing options can be broken down into short-term financing needs and long-term financing need. To determine financing needs, a company will often have to estimate future sales, future sales allowing them to estimate production levels.


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A company may consider production needs from a seasonal perspective or from a level production perspective. In other words, a company that has seasonal sales may attempt to ratchet up production during the busy times of the year or they may choose a level production method. Both production options have pros and cons and have different financing needs.

This course will discuss equipment short term vs long term financing as well as financing strategies related to permanent and temporary assets.

We will have many example problems, some in presentation format and some using Excel worksheets. Each Excel worksheet problem will have a downloadable Excel worksheet with at least two tabs, one with the answer, and another with a preformatted worksheet that you can complete in a step-by-step process along with instructional videos.

English
language

Content

Financing Decisions

605 The Nature of Asset Growth
610 Patterns of Financing

Practice Probs – Financing Decisions

611 Estimated Sales Values Estimated Sales Values
613 Estimating Financing Needed for Increase in Assets
615 Level Production vs Seasonal Production
617 Short Term Loan vs Long Term Loan
619 Equipment Short Term Financing vs Long Term Loan Financing
620 Asset & Financing Mix Options
622 Asset Mix & Financing Mix
624 Comparing Financing Strategies
625 Financing Strategies – Permanent & Temporary Assets
626 Expectations Hypothesis Theory for Expected Returns on Securities
629 Break Even Point in Interest Rates
631 Level Production & Budgeted Cash Flow

Excel Probs – Financing Decisions

611 Estimated Sales Values
613 Estimating Financing Needed for Increase in Assets
615 Level Production vs Seasonal Production
617 Short Term Loan vs Long Term Loan
619 Equipment Short Term Financing vs Long Term Loan Financing
620 Asset & Financing Mix Options
622 Asset Mix & Financing Mix
624 Comparing Financing Strategies
625 Financing Strategies – Permanent & Temporary Assets
626 Expectations Hypothesis Theory for Expected Return on Securities
629 Break Even Point in Interest Rates
631 Level Production & Budgeted Cash Flow