Capital Structure and Financing: From Debt to Equity

Every business, from a small startup to a global corporation, must decide how to fund its operations. Choosing the right mix of debt and equity is one of the most critical decisions a financial manager can make. This text-only course guides you through the core principles of corporate finance, focusing on capital structure models. You will learn how companies evaluate loans, issue shares, and balance risk and return to maximize value. Starting with basic terminology, we demystify complex financial theories and translate them into practical business decisions. What you'll learn: Understand the fundamental differences between debt and equity financing; Master classic capital structure theories, including Modigliani-Miller theorems; Analyze the cost of capital using WACC (Weighted Average Cost of Capital); Evaluate the tax advantages of debt versus the risks of financial distress; Explore modern capital allocation trends, including sustainability-linked financing; Apply decision-making frameworks to determine the optimal capital structure for any business. We begin with foundational financial definitions, exploring how credit and shares function in corporate environments. You will then progress through structured text-based lessons detailing capital structure models, cost calculations, and modern corporate finance strategies. Designed for beginners, finance students, and aspiring entrepreneurs, this course requires no prior background in advanced mathematics or corporate finance. Start reading today to build a strong foundation in corporate financial strategy.