ACCA F9 - Cost of Capital - Equity | скачать в хорошем качестве

ACCA F9 - Cost of Capital - Equity |

This is the 3rd video in the series of Five [5] covering section E of ACCA’s F9 – Financial Management consisting of: 1. Sources of, and raising, business finance 2. Estimating the cost of capital 3. Sources of finance and their relative costs 4. Capital structure theories and practical considerations 5. Finance for small- and medium-sized entities (SMEs) Watch full playlist here:    • FM [F9] | E: Business finance   Download ACCA F9 2022 - 20233 Syllabus here: https://www.accaglobal.com/in/en/stud... _____________________________________________________________________________________ On successful completion of this video, you will be able to: 1. Sources of, and raising, business finance a) Identify and discuss the range of short-term sources of finance available to businesses, including: i) Overdraft ii) Short-term loan iii) Trade credit iv) Lease finance. b) Identify and discuss the range of long-term sources of finance available to businesses, including: i) Equity finance ii) Debt finance iii) Lease finance iv) Venture capital. c) Identify and discuss methods of raising equity finance. d) Identify and discuss methods of raising short- and long-term Islamic finance, including: i) Major differences between Islamic finance and the other forms of business finance. ii) The concept of riba (interest) and how returns are made by Islamic financial securities. iii) Islamic financial instruments available to businesses including: e) Identify and discuss internal sources of finance, including: i) Retained earnings ii) Increasing working capital management efficiency iii) The relationship between dividend policy and the financing decision iv) The theoretical approaches to, and the practical influences on, the dividend decision, including legal constraints, liquidity, shareholder expectations and alternatives to cash dividends. 2. Estimating the cost of capital a) Estimate the cost of equity including: i) Application of the dividend growth model, its assumptions, advantages and disadvantages. ii) Explanation and discussion of systematic and unsystematic risk iii) Relationship between portfolio theory and the capital asset pricing model (CAPM) iv) Application of the CAPM, its assumptions, advantages and disadvantages. b) Estimating the cost of debt: i) Irredeemable debt ii) Redeemable debt iii) Convertible debt iv) Preference shares v) Bank debt. c) Estimating the overall cost of capital. 3. Sources of finance and their relative costs a) Describe the relative risk-return relationship and the relative costs of equity and debt. b) Describe the creditor hierarchy and its connection with the relative costs of sources of finance. c) Identify and discuss the problem of high levels of gearing. d) Assess the impact of sources of finance on financial position, financial risk and shareholder wealth using appropriate measures, including: i) Ratio analysis using statement of financial position gearing, operational and financial gearing, interest coverage ratio and other relevant ratios ii) Cash flow forecasting iii) Leasing or borrowing to buy. e) Impact of cost of capital on investments. 4. Capital structure theories and practical considerations a) Describe the traditional view of capital structure and its assumptions. b) Describe the views of Miller and Modigliani on capital structure, both without and with corporate taxation, and their assumptions. c) Identify a range of capital market imperfections and describe their impact on the views of Miller and Modigliani on capital structure. d) Explain the relevance of pecking order theory to the selection of sources of finance. 5. Finance for small- and medium-sized entities (SMEs) a) Describe the financing needs of small businesses. b) Describe the nature of the financing problem for small businesses in terms of the funding gap, the maturity gap and inadequate security. c) Explain measures that may be taken to ease the financing problems of SMEs, including the responses of government departments and financial institutions. d) Identify and evaluate the financial impact of sources of finance for SMEs. Subscribe to this channel    / @financeskul   _____________________________________________________________________________________ Transcript: Full course with topic by topic practical questions and smart notes, send "I need full course" to: Email: financeskul@gmail.com Tags: #acca course #acca f5 #acca f6 #acca f7 #acca f8 #acca f9 #acca SBL #acca SBR #acca APM #acca AFM #acca ATX #acca AAA #cima course #cma exam #accountancy #cpa exam