1. Learning Objectives
So let's quickly discuss the learning objectives for this course. First
of all, we want to make sure that we understand exactly what capital
investment is and why it increases a company's assets.
Secondly, we want to learn the common metrics that companies used in order
to evaluate various investments. We also need to understand the business
life cycle and how that lines up and impacts the funding life cycle
of an organization. When we talk about capital financing, we need to understand
the different types and sources of equity and debt that are available to
companies. Then what we're going to do is we're going to utilize the
right mix of debt and equity in order to minimize the company's weighted
average cost of capital or WACC. And finally, for situations where the company
cannot find adequate investments or has excess capital available, we're
going to look at the advantages and disadvantages of the various ways that
a company can return capital to shareholders.
2. Let's practice!