1. Capital Financing Overview
Now, we definitely understand the idea with corporate finances to maximize
the value of a business, and we've completed the first section of this
course on capital investment. Now, we are focused on capital financing.
So we've decided which projects we want to either proceed with or avoid.
Now we're looking at how to finance them, so what mix of debt
and equity are we going to use to fund the projects that we've
decided to advance? Now, you can see in the notes for capital financing
that we're looking to optimize a firm's capital structure. Well, what does
this mean? Well, we want to have the lowest possible weighted average cost
of capital, and we'll be discussing that in this section of the course.
2. Let's practice!