The Financing Decision - Online

This introductory course draws upon both finance theory and practical applications to help managers understand key concepts that underlie analysis and execution of financial decisions.

This course replicates the content from lesson 5 of Corporate Finance - Online

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer. Subscription period for this course is 90 days.


Individuals in credit, investment banking, corporate finance, and sales and trading.
Students will be able to:
  • Recognize factors influencing a financing decision and characteristics influencing the associated debt/equity mix.
  • Recognize the significance of the debt-to-equity ratio to the financing decision and why firms may choose debt.
  • Recognize the effects of leverage and its relationship to cost of equity (how financing decisions affect the value of a firm).
  • Calculate the cost of equity under various leverage ratios.
The Financing Decision - Online
  • Modigliani and Miller propositions
  • Impact of bankruptcy and ownership structure on financing decisions
  • Impact of leverage on firm valuation