Introduction:

Corporate finance and capital structure refer to the structured coordination of financial decision-making processes that govern how organizations manage funding, allocate capital, and structure liabilities and equity. These frameworks support institutional financial stability by defining the sources, costs, and allocation of financial resources. This training program introduces foundational models in corporate finance, financial structuring logic, and frameworks for maintaining optimal capital structure alignment.

Program Objectives:

By the end of this program, participants will be able to:

Identify core functions and decision areas within corporate finance.
Outline capital structure models used to manage financial leverage and funding sources.
Classify tools for evaluating investment, financing, and dividend decisions.
Explore frameworks for balancing risk, cost, and return in capital structuring.
Evaluate institutional models for aligning financial policy with strategic goals.

Targeted Audience:

Corporate Finance Officers.
Financial Analysts and Controllers.
Treasury and Capital Planning Staff.
Strategy and Investment Teams.
Risk and Governance Professionals.

Program Outline:

Unit 1:

Core Concepts in Corporate Finance:

Definition and scope of corporate finance functions.
Decision areas, including investment, financing, and dividends.
Time value of money and capital budgeting principles.
Working capital management structures.
Financial goal alignment with shareholder value.

Unit 2:

Capital Structure Models and Classifications:

Definitions of debt, equity, and hybrid instruments.
Leverage models and financial risk indicators.
Modigliani-Miller propositions and capital structure relevance.
Trade off theory and pecking order theory frameworks.
Institutional factors influencing capital structure decisions.

Unit 3:

Financing Decisions and Resource Allocation:

Short-term and long-term financing classifications.
Internal vs external funding logic.
Cost of capital and weighted average cost of capital (WACC).
Matching principle in funding and asset structuring.
Governance considerations in financing decisions.

Unit 4:

Capital Structure Optimization and Policy Alignment:

Criteria for evaluating optimal capital mix.
Impact of taxation, interest rates, and financial flexibility.
Debt capacity and institutional credit structure.
How to monitor financial ratios in capital decisions.
Role of financial policy in sustaining organizational stability.

Unit 5:

Financial Strategy, Oversight, and Compliance:

Integration process of capital decisions into strategic financial plans.
Financial oversight systems and internal controls.
Reporting structures and capital allocation transparency.
Alignment of capital policies with regulatory expectations.
Institutional accountability in financial structuring decisions.

Corporate Finance and Capital Structure